Medical Device and Equipment Scams

They promised her a ‘doctor-recommended’ device. The doctor never existed!

Medical devices—whether it’s mobility aids, diagnostic tools, or home-care equipment—are the kind of products people buy because they need them, not because they feel like shopping. Scammers exploit this desperation, targeting patients and seniors who depend on such items and might be willing to go to great lengths to purchase them.

Some schemes are obvious, like the typical spam messages riddled with errors, but many are surprisingly polished, backed by professional-looking websites, fake testimonials, and even forged FDA documentation.

The tricky part is that medical equipment can be highly specialized. Most buyers don’t have the time or technical expertise to dissect the fine print of a product listing, and scammers count on that.

The good news: once you know what to look for, the warning signs stand out, making it easier to spot scams before they empty your bank account.

Identifying red flags

Spotting a medical device scam isn’t about memorizing obscure regulations—it’s about paying attention to the kinds of details legitimate sellers rarely get wrong. Here are the big ones:

Suspiciously low prices

Medical equipment doesn’t magically go on 80% off clearance. If the price feels wildly out of step with the market, there’s usually a reason—and it’s rarely a good one. Compare against multiple reputable sellers. If everyone else lists a product in the $2,000 range but one site offers it for $399, treat it as a glaring warning sign.

Vague or misleading product details

Real medical devices come with specifications, model numbers, manufacturer information, and regulatory details. Scammers tend to rely on generic phrasing—“premium quality,” “doctor-recommended,” “hospital-grade”—without actual evidence.

If the listing can’t tell you exactly what the device does, who makes it, or how it complies with medical standards, that’s a major red flag.

Fake or misused certifications

Many scam sites boast labels like “FDA Approved” or “CE Certified,” even for devices that don’t require it or aren’t legally allowed to claim it.
Quick clues something is off:

The certification logos look distorted or outdated
There’s no link to official documentation
The product type isn’t something the FDA would approve in the first place (e.g., simple massagers)

A legitimate seller can provide verifiable paperwork immediately, not after “processing time.”

No physical address or a dubious business location

Scam websites often bury their contact page or list an address that leads to a parking lot, mailbox service, or the wrong type of business entirely.
Before buying, plug the address into a map or call the number listed. A real medical device supplier typically has:

A working phone line answered by a human
A business address you can verify
Customer service that knows their own product catalog

Pressure tactics

Scammers often use urgency with countdown timers, notifications like “only 2 units left,” or warnings that your discount expires in minutes. Legitimate medical suppliers rarely push you to make a snap decision, because they know their products require research and budgeting.

Payment methods that offer no protection

Be skeptical of sellers who insist on:

Wire transfers
Prepaid cards
Cryptocurrency
“Friends and Family” payments

Established suppliers accept secure methods like credit cards, valid loans, or invoicing systems tied to registered business accounts.

Common medical device and equipment fraud schemes

Scammers use a mix of old tricks that are known to work and newer, more modern tactics using advanced tech tools to target patients, caregivers, clinics, and even hospitals. Many of these schemes look legitimate at first glance, which is why understanding the common patterns can save you from a major financial headache, or worse, faulty equipment that compromises care.

Phantom suppliers

These are businesses that appear real with professional websites, realistic product photos, maybe even a fake “About Us” page featuring stock-photo employees. They take orders and payments, then disappear. No product ever arrives, and customer service goes silent. This scheme often relies on short-lived websites designed to shut down before complaints pile up and legal action is pursued.

Counterfeit or refurbished-as-new devices

Some sellers pass off refurbished, damaged, or flat-out counterfeit equipment as brand-new. In some cases, the device looks legitimate but has missing safety components or unauthorized internal parts. Hospitals have reported receiving devices with serial numbers filed off or duplicated—signs someone’s trying to hide the device’s history.

“Bait and switch” equipment sales

In this scheme, you order a high-quality model but receive a much cheaper version, often with fewer features or lower safety standards. The seller may claim it’s a “manufacturer upgrade” or “equivalent model,” hoping you won’t notice until it’s too late to dispute the purchase.

Fraudulent billing schemes

This is especially common in the durable medical equipment (DME) space. Scammers may:

Bill insurance for equipment never delivered
Bill for a more expensive device than the one provided
Automatically rebill patients for supplies they didn’t request

Some operations steal patient information from clinics or nursing homes, making it look like the patient authorized the charges.

Fake repair and maintenance services

Some groups pose as authorized repair technicians for high-value medical equipment—ultrasound machines, ventilators, infusion pumps. They schedule a service visit, take the equipment “for repairs,” and never come back. Others charge for unnecessary maintenance or replace parts with substandard alternatives.

“Free trial” traps

A common consumer scam: the company offers a medical device—like a brace, monitor, or mobility tool at no cost beyond shipping. Hidden in the fine print is a recurring monthly fee or expensive subscription. If the customer tries to cancel, they’re met with vague policies and unresponsive support.

Rental and leasing scams

Medical equipment rentals are convenient, especially for short-term recovery. Scammers exploit this by offering low-cost leases, then:

Charging excessive damage fees
Demanding deposits far above industry norms
Continuing to bill after the equipment is returned

Some never deliver the equipment at all.

Unauthorized resellers of recalled or expired devices

Some fraud rings buy recalled, expired, or discarded equipment at liquidation auctions, then clean it up and resell it as new. Even professionals can miss signs of tampering, and using outdated or recalled equipment poses several safety risks.

Consequences of medical device and equipment fraud in the U.S.

Medical equipment fraud is not a minor problem affecting a small group of patients and caregivers.

The U.S. Sentencing Commission reports that in fiscal year 2024, there were 395 healthcare fraud cases, with a median loss of about $2.53 million per incident.

In June 2025, the U.S. Justice Department announced its largest healthcare fraud takedown ever, charging 324 defendants across 50 federal districts for fraud schemes totaling $14.6 billion in alleged loss.

Among the fraud groups involved, Operation Gold Rush was a ring that submitted about $10.6 billion in fraudulent Medicare claims for urinary catheters and other durable medical equipment. Authorities say the scheme misused the identities of more than 1 million Americans to file these false claims.

It’s not just massive groups running large-scale fraud schemes. Individuals have run million-dollar scams too.

In 2023, Dr. Sudipta Mazumder was convicted for making false statements: she signed orders for medically unnecessary durable medical equipment (orthopedic braces) in exchange for money.

In April 2024, a New York man, Manishkumar Patel, pleaded guilty in a scheme that defrauded Medicare by submitting fraudulent prescriptions for durable medical equipment. He admitted to siphoning off nearly $50 million in Medicare funds.

Regulators (DOJ, HHS-OIG, CMS) are aggressively going after these scammers. But even then, some fraudulent payments slip through.

Fraud of this scale harms not just taxpayers but patients in urgent need of care. Fraudulently billed devices may never reach the patient, or the patient may receive substandard or unsafe equipment.

Moreover, high fraud costs could drive up insurance premiums and increase the cost burden on government healthcare programs like Medicare and Medicaid.

Tips to avoid medical device and equipment scams

Steering clear of medical device and equipment scams is mostly about pausing long enough to check the details that scammers hope you’ll overlook. A few simple habits can save you from expensive mistakes.

Research the seller, not just the product

Before you get excited about a great price or a hard-to-find device, look into who’s actually selling it.
A legitimate business should have:

A verifiable address
A working customer service line
Consistent company information across the web
Reviews that aren’t suspiciously short, repetitive, or overly enthusiastic

If you can’t confirm who’s behind the website, walk away.

Compare prices across multiple reputable sources

Medical equipment pricing doesn’t fluctuate wildly. A deep discount might sound like a lucky break, but it often signals counterfeit or nonexistent products. If one seller is dramatically cheaper than the rest, use that as a warning, not an incentive.

Ask for documentation

Any legitimate seller should be able to provide:

User manuals
Product specifications
Warranty details
Proof of FDA clearance or other regulatory information (when applicable)

If they hesitate, send generic PDFs, or claim “the manufacturer doesn’t allow distribution,” that’s a sign the documentation doesn’t exist.

Be cautious about online marketplaces

Platforms like eBay, Facebook Marketplace, or independent classifieds can be convenient, but they’re also popular with scammers. If you use them, stick with:

Sellers who have a long history of sales
Listings with serial numbers you can verify
Payment methods that protect buyers

When in doubt, choose suppliers that specialize in medical equipment.

Avoid rushed decisions

Scammers frequently force urgency with phrases like: “only one left,” “price expires in 30 minutes,” “last chance to get this model.”

Real medical equipment suppliers understand that purchases are significant and often require time, consultation, or insurance review. If you feel rushed, slow down on purpose.

Save every receipt, message, and invoice

Keep records of:

What you purchased
Who you bought it from
The exact model and price
Any promises made by the seller

This documentation is crucial if you need to dispute a charge or report a fraudulent business.

Talk to a healthcare provider before buying

Your doctor, physical therapist, or care coordinator may know reputable suppliers, typical price ranges, and features you actually need. They may even warn you if a particular brand or model is frequently counterfeited.

Trust your instincts

If something feels off—confusing product descriptions, a seller who dodges questions, or a deal that sounds strangely generous—it probably is. Take a step back and rerun your research. Most scams reveal themselves when you give yourself a little space to think.

How to report

If you suspect a medical device or equipment scam in the U.S., here are the key agencies to contact and the steps you can take:

Report to the FDA

Use theFDA MedWatch program to report serious problems, adverse reactions, or quality issues with medical devices.
You can also call the FDA: 1-800-888-INFO (1-888-463-6332) for non-urgent complaints.
If the issue is about illegal or misleading online sales (e.g., a scam website), use the FDA’s dedicated form for reporting unlawful internet sales of medical products.
For suspected regulatory misconduct (for example, a company marketing a device without proper FDA clearance), you can file an allegation through the FDA’s Allegations of Regulatory Misconduct system or email [email protected]

Notify law enforcement or financial regulators

If the scam involves billing fraud (for instance, Medicare billing for devices never delivered), you can report to HHS Office of Inspector General (OIG) or the Department of Justice (DOJ). The OIG regularly investigates health care fraud including durable medical equipment fraud.
For financial losses (fraudulent charges, payments to scammers), you can submit a complaint to the Consumer Financial Protection Bureau (CFPB).
You may also want to file a complaint with the Federal Trade Commission (FTC) about fraudulent ads, websites, or misleading marketing. The DOJ and FTC often collaborate on health fraud cases.

Report to the manufacturer/distributor

If you purchased from a company, report your concerns to their customer-service team or their quality-assurance department. According to FDA guidance, you should also notify the retailer or distributor listed on the product label. This helps the company investigate and recall potentially dangerous or fraudulent products.

Keep records

Document as much as you can: receipts, product packaging, serial numbers, model numbers, correspondence with the seller, screenshots of their website, and anything they told you.

This documentation will help regulators assess your report and take action, and give you a stronger basis for any dispute.

How ReversePhone can help protect against medical equipment scams

Medical device and equipment scams often start with one simple point of contact—a phone call, a text, or a number listed on a suspicious website. That’s where ReversePhone becomes useful as an early defense tool.

Here’s how ReversePhone can help:

Verifying unknown callers instantly

Scammers frequently pose as:

Medical suppliers
Medicare or insurance representatives
“Authorized device distributors”
Customer support agents

ReversePhone lets you plug in the number and see who it actually belongs to. If the number has a trail of complaints, suspicious activity, or mismatched business information, that’s often your first clue to stop engaging.

Checking the legitimacy of companies selling devices

Fraudulent medical suppliers often list a fake “customer service” line on their sites. ReversePhone can help you identify:

Whether the number belongs to a real business
If it’s linked to multiple scam reports
Whether the area code or location matches the company’s claimed address

Spotting coordinated scam operations

Many medical-equipment fraud rings reuse the same clusters of phone numbers, even when they change company names or website domains. ReversePhone’s search results can reveal patterns such as:

Repeat complaints
Connected numbers
Shared addresses or call centers
Known scam aliases

This makes it easier to identify evolving fraud schemes before they reach you.