Medicare and hospice scams are on the rise.
In a rare show of bipartisanship, the U.S. House of Representatives unanimously passed the Senior Security Act — a bill aimed squarely at protecting older Americans from financial scams.
Championed by Rep. Josh Gottheimer (D-N.J.), the bill would establish a Senior Investor Task Force within the Securities and Exchange Commission.
Its job?
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To identify and address the risks older investors face — from outright fraud and financial exploitation to the more subtle threats tied to cognitive decline.
Fraudsters are enrolling seniors in hospice care — without their knowledge.
Image source: Chaozzy Lin on Unsplash
The financial scam risks older adults face
The Senior Investor Task Force is long overdue. For years, advocates have called for stronger investor protections for seniors, and this legislation delivers. Here’s what it would do:
- Identify challenges that senior investors face navigating the financial system
- Recommend changes to SEC rules or those of self-regulatory organizations to better protect seniors
- Coordinate efforts with other SEC offices, the Elder Justice Coordinating Council, and other relevant agencies
- Collaborate with state securities regulators, law enforcement, and insurance departments
Related: Retired workers to see frustrating change to Medicare in 2026
The task force would also deliver a biennial report to Congress, summarizing:
- Trends and innovations reshaping the investing landscape for older Americans
- Regulatory and industry practices that impact senior investors
- Key observations from enforcement actions and investor education efforts
- The most serious issues confronting senior investors
- Recommendations for changes in regulation, guidance or legislation
For retirees trying to safeguard their nest eggs — and for the advisers who help them — this is an important step toward turning concern into real protection.
How much money did seniors lose to scams in 2024?
In 2024, Americans reported a record-shattering $16.6 billion in losses to the FBI’s Internet Crime Complaint Center — a 33% increase over 2023. According to the 2024 IC3 Annual Report, IC3 received 859,532 complaints — more than 2,000 a day. A staggering 83% of those losses were tied to cyber-enabled fraud.
Older adults were hit especially hard. Those aged 60 and older reported $4.9 billion in losses — a 43% jump from the previous year. They filed 147,127 complaints, up 46%. Among seniors who lost more than $100,000, the average loss was $83,000 — a life-altering amount for most.
That’s why efforts like the Senior Security Act — and public education campaigns about scams — are more important than ever.
Medicare scams: a new warning
Speaking of public education campaigns, the Centers for Medicare & Medicaid Services (CMS) just issued a warning to beneficiaries about a disturbing new scam: fraudsters posing as salespeople offering “free” services or gifts in order to enroll unsuspecting seniors in hospice care — without their knowledge or need.
In a July 16 fraud alert, CMS outlined how the scam works:
- Scammers contact you via text, phone, email, fake ads — or even knock on your door.
- They offer “free” perks like cooking, cleaning, groceries, or medical supplies.
- In return, they ask for your Medicare number and a signature.
- They use that information to enroll you in hospice care, allowing them to bill Medicare fraudulently.
Related: Millions of Medicare beneficiaries could see major price shock
Hospice care, CMS noted, is for individuals who are terminally ill and should only be considered after discussions with a person’s doctor. Enrolling without medical necessity could jeopardize their future Medicare coverage.
CMS Administrator Dr. Mehmet Oz issued a video message warning Medicare beneficiaries to stay alert for such scams and to guard their Medicare numbers carefully.
What the FTC is saying about Medicare scams
The Federal Trade Commission is also sounding the alarm. In a recent post, FTC consumer education specialist Kira Krown also warned that scammers are luring older adults into fraudulent hospice enrollment by offering free services like housekeeping or gift cards.
“What they likely won’t tell you is how,” Krown wrote. “They want to commit fraud by signing you up for Medicare hospice — that’s right, hospice — care. Then, they can bill Medicare for all kinds of services in your name. If you’re signed up and don’t need it, this could affect your Medicare coverage in the future. Anyone who tells you differently is a scammer.”
To protect yourself, the FTC recommends:
- Never share your Medicare number with anyone offering “free” services.
- Don’t sign up for hospice in exchange for perks like groceries, gift cards, or cash.
- Know that Medicare will never send someone to your home to enroll you in services.
If you suspect hospice fraud, call 1-800-MEDICARE (1-800-633-4227) or file a report at Medicare.gov/fraud. You can also reach out to your local Senior Medicare Patrol (SMP) for assistance.