It sounded too good to be true and it was.

The scammers calling from Montreal, Canada, told seniors that for around $300 they could buy a "drug discount card" that would pay for all their prescriptions and that they wouldn't need a Medicare part D plan.

It's hard to say exactly how many seniors were duped and how much they lost, says William Hodor, a lawyer with the Federal Trade Commission in Chicago, who handled the case. But he estimates somewhere around 3,600 seniors fell victim to the scam between October 2012 and March 2013.

In this case, the scammers, who were caught and stopped, weren't...

AUSTIN (KXAN) — Medicaid fraud is a multibillion dollar scam, and a new computer system hopes to help spot the crooks.

Texas pays out $28 billion a ano to some 4.8 million people, according to Kaiser.

The state picks up one-fourth of the tab, and the feds pay the rest. The FBI estimates that 10% of Medicaid claims are fraudulent, which comes out to $2.8 billion a ano in Texas alone.

On Monday, Austin company 21CT launches a new computer system called “Torch” to help the state bring scammers to justice.

Torch will collate state data around the clock. The system will monitor frequency of...