Scam targets Medicare, Medicaid recipients
ALBANY — A growing scam targets the tax refunds of Medicare and Medicaid recipients, government officials say.
The Centers for Medicare & Medicaid Services — the federal agency that oversees those programs — says groups of individuals are stealing the identities of beneficiaries of those programs through employers, schools, hospitals and prisons.
Typically, the information taken is the member's name, Social Security number, address and date of birth.
The individuals use the information to electronically file a fraudulent tax claim, using a program such as Turbo Tax or other computer-based filing software.
The tax refund is loaded onto a "Green Dot Card," which is a prepaid MasterCard or Visa debit card. True taxpayers are not aware of the scam until they are rejected when they attempt to file their taxes.
Due to the allegation of tax fraud, the Internal Revenue Service, Secret Service, FBI and Postal Inspection Service are involved in the investigation.
BE AWARE
The most important precaution is to be aware, recognize schemes such as this one and not fall victim to them, said Greg Olsen, acting director of the New York State Office for the Aging, in the release.
"Consumer fraud knows no season — only victims," he said. "However, those that prey on potential victims use whatever advantage they can to access and scam their victims."
"The New York State Tax Department has staff dedicated to identifying questionable returns," said New York State Tax Commissioner Thomas H. Mattox.
"We use a comprehensive case identification system that combines a robust data matching and verification process with auditors who carefully examine and verify tax information.
"We are committed to actively pursuing prosecution of criminals committing tax fraud. Taxpayers who suspect they have been the victim of tax fraud should contact the New York State Tax Department immediately."
FRAUD ALERT
Medicare beneficiaries who suspect their identity has been compromised or have information related to the tax-refund scam, should contact Health Integrity at (877) 772-3379.
Also, you should:
▶ Call the Federal Trade Commission's Identity Theft Hotline, toll-free: (877) ID-THEFT (438-4338).
▶ Call your local police department and file a report about your identity theft.
▶ Continue to review your Medicare summary notices to ensure no one is using your number to file false claims with Medicare.
▶ Place a fraud alert on your credit reports and review your credit reports. Call at least one of the credit reporting agencies to let them know about the identity theft. One of those is Experian: (888) EXPERIAN (397-3742).
For tips on protecting your identity, go to dos.ny.gov.
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