Foley Hoag Counsel Caroline Farrell was quoted in MedTech Dive discussing the Centers for Medicare & Medicaid Services’ (CMS) recent request for information aimed at strengthening program integrity and combating fraud in laboratory testing. In the article, Farrell commented on new CMS actions—including a six?month moratorium on enrollment of new durable medical equipment, prosthetics and orthotics companies in Medicare, and a pause on $259.5 million in federal Medicaid funds to Minnesota—as part of a broader effort to curb fraudulent billing practices.
Addressing the rapid rise in spending on genetic testing, Farrell noted that the high cost of these tests means fraudulent activity can escalate quickly. “What I take away from that is these are really expensive tests,” Farrell said, adding that fraud in this space, if widespread, would result in significant financial impact.
Farrell…
These frauds exploit emotional vulnerability and trust rather than technical weaknesses.
- Romance Scams: Scammers build long-term online relationships with victims, eventually fabricating a “crisis” (medical emergency, legal trouble, or travel costs) that requires the victim to send money.
- Pig Butchering: A hybrid scam where the criminal builds a romantic or platonic relationship to eventually “tutor” the victim in a fraudulent cryptocurrency investment.