Americans Fell for a Theranos-Style Scam 100 Years Ago. Will We Ever Learn?
The huckster understands what people want – an easy route to good health -- and figures out just how to provide it as long as no one asks too many questions.
"Americans are very much prone to this sort of thinking: Give me a pill or give me a magical bean that can make me lose weight!"
The keys to success: Hoopla, fancy technology, and gullibility. And oh yes, one more thing: a blood sample. Well, lots and lots of blood samples. Every testing fee counts.
Sound familiar? It could be the story of the preternaturally persuasive Elizabeth Holmes, the disgraced founder of Theranos who stands accused of perpetrating a massive blood-testing fraud. But this is a different story from a different time, one that dates back 100 years but sounds almost like it could unfold on the front page of The Wall Street Journal today.
The main difference: Back then, watchdogs thought they'd be able to vanquish fake medicine and scam science. Fat chance, it turned out. It seems like we're more likely to lose-weight-quick than make much of a dent into quackery and health fraud.
Why? Have we learned anything at all over the past century? As we sweep into a new decade, experts says we're not as advanced as we'd like to think. But the fight against fraud and fakery continues.
Quackery: As American As America Itself
In the 17th century, British healers of questionable reputation got a new name -- "quack," from the Dutch word "quacksalver," which originally referred to someone who treats others with home remedies but developed a new meaning along the lines of "charlatan." And these quacks got a new place to sell their wares: the American colonies.
By 1692, a Boston newspaper advertised a patent medicine that promised to cure "the Griping of the Guts, and the Wind Cholick" and – for good measure – "preventeth that woeful Distemper of the Dry Belly Ach." A couple centuries later, the most famous woman in the United States wasn't a first lady or feminist but a hawker of nostrums named Lydia Estes Pinkham whose "vegetable compound" promised to banish "female complaints." One advertisement suggested that the "sure cure" would have saved the life of a Connecticut clergyman whose wife killed him after suffering from feminine maladies for 16 years.
By the early 20th century, Americans were fascinated by electricity and radiation, and both healers and hucksters embraced the new high-tech era. Men with flagging libidos, for example, could irradiate their private parts with the radioactive Radiendocrinator or buy battery-powered electric belts equipped with dangling bits to supercharge their, um, dangling bits.
The Rise of the Radio Wave 'Cure'
Enter radionics, the (supposed) science of better health via radio waves. The idea was that "healthy people radiate healthy energy," and sickness could be reversed through diagnosis and re-tuning, write Dr. Lydia Kang and Nate Pedersen in their 2017 book "Quackery: A Brief History of the Worst Ways to Cure Everything."
Detecting illness and fixing it required machinery -- Dynamizers, Radioclasts and Oscillocasts – that could cost hundreds of dollars each. Thousands of physicians bought them. Fortunately, they could work remotely, for a fee. The worried-and-potentially-unwell just needed to send a blood sample and, of course, a personal check.
Sting operations revealed radionics to be bogus. A skeptic sent a blood sample to one radionics practitioner in Albuquerque who reported back with news of an infected fallopian tube. In fact, the blood sample came from a male guinea pig. As an American Medical Association leader reported, the guinea pig "had shown no female characteristics up to that time, and a postmortem examination yielded no evidence of ladylike attributes."
When Quackery Refused to Yield
The rise of bogus medical technology in the early 20th century spawned a watchdog industry as organizations like the American Medical Association swept into action, said medical historian Eric Boyle, author of 2012's "Quack Medicine: A History of Combating Health Fraud in Twentieth-Century America."
"When quackery was recognized as a major problem, the people who campaigned for its demise were confident that they could get rid of it," he said. "A lot of people believed that increased education, the truths of science, and laws designed to protect consumers would ultimately drive quackery from the marketplace. And then throughout the century, as modern medicine developed, and more effectively treated one disease after another, many observers remained confident in that prediction."
There's a bid to "flood the information highway with truth to turn the storm of fake promotional stuff into a trickle."
But fake medicine persisted as Americans continued their quest to get- healthy-quick… or get-rich-quick by promising to help others to get- healthy-quick. Even radionics refused to die. It's still around in various forms. And, as the Theranos scandal reveals, we're still hoping our blood can offer the keys to longevity and good health.
Why Do We Still Fall for Scams?
In our own era, the Theranos company rose to prominence when founder and CEO Elizabeth Holmes convinced journalists and investors that she'd found a way to cheaply test drops of blood for hundreds of conditions. Then it all fell apart, famously, when the world learned that the technology didn't work. The company has folded, and Holmes faces a federal trial on fraud charges this year.
"There were a lot of prominent, very smart people who bought into the myth of Elizabeth Holmes," a former employee told "60 Minutes," even though the blood tests never actually worked as advertised.
Shouldn't "prominent, very smart people" know better? "People are gullible," said Dr. Stephen Barrett, a psychiatrist and leading quack-buster who runs the QuackWatch website. But there's more to the story. According to him, we're uniquely vulnerable as individuals to bogus medicine.
Scam artists specifically pinpoint their target audiences, such as "smart people," desperate people and alienated people, he said.
Smart people, for example, might be overconfident about their ability to detect fraud and fall for bogus medicine. Alienated people may distrust the establishment, whether it's the medical field or government watchdogs, and be more receptive to alternative sources of information.
Dr. Barrett also points a finger at magical thinking, which comes in different forms. It could mean a New Age-style belief that our minds can control the world around us. Or, as professional quack-buster Alex Berezow said, it could refer to "our cultural obsession with quick fixes."
"Americans are very much prone to this sort of thinking: Give me a pill or give me a magical bean that can make me lose weight! But complex problems need complex solutions," said Berezow, a microbiologist who debunks junk science in his job as a spokesman for the American Council on Science & Health.
American mistrust of expertise makes matters worse, he said. "When I tell people they need to get vaccinated, I'm called a shill for the pharmaceutical industry," he said. "If I say dietary supplements generally don't work, I'm a shill for doctors who want to keep people sick."
What can ordinary citizens do to protect themselves from fake medicine? "You have to have a healthy skepticism of everything," Berezow said. "When you come across something new, is someone trying to take advantage of you? It's a horrible way to think about the world, but there's some truth to it."
"Like any chronic disease, we will have to live with it while we do our best to fight it."
The government and experts have their own roles to play via regulation and education, respectively. For all the criticism it gets, the Food & Drug Administration does serve as a bulwark against fakery in prescription medicine. And while celebrities like Gwyneth "Goop" Paltrow hawk countless questionable medical products on the Internet, scientists and physicians are fighting back by using social media as a tool to promote the truth. There's a bid to "flood the information highway with truth to turn the storm of fake promotional stuff into a trickle," said Dr. Randi Hutter Epstein, a writer in residence at Yale School of Medicine and author of 2018's "Aroused: The History of Hormones and How They Control Just About Everything."
What's next? Like death, taxes and Cher, charlatans are likely to always be with us. Boyle quoted the late William Jarvis, a pioneering quack-buster in the late 20th century who believed health fraud would never be eradicated: "Like any chronic disease, we will have to live with it while we do our best to fight it."
At the “Apple Store of Doctor’s Offices,” Preventive Care Is High Tech. Is it Worth $150 a Month?
What if going to the doctor's office could be … nice?
If you didn't have to wait for your appointment, but were ushered right in; if your medical data was all collated and easily searchable on an iPhone app; if a remote scribe took notes while you spoke with your doctor so you could make eye contact with them; if your doctor didn't seem horribly rushed.
Would you go to the doctor to get help staying healthy, rather than just to stop being sick?
Would that change the way you thought about your health? Would you go to the doctor to get help staying healthy, rather than just to stop being sick? And would that, in the long run, be much better for you?
Those are the animating questions for Forward, a healthcare startup devoted to preventive care. Led by founder Adrian Aoun, formerly of Google/Sidewalk labs, Forward opened its first office in San Francisco in 2016 and has since expanded to Los Angeles, Orange County, New York, and Washington, D.C., with a San Diego location opening soon.
It's been described as the "Apple Store of doctor's offices," which in some ways is a reaction to Forward's vibe: Patients have described the offices as having blonde wood, minimalist design, sparkling water on tap — and lots of high-tech gadgets, like the full-body scanner that replaces the standard scale and stethoscope.
The interior of a Forward office.
(Courtesy Forward)
The more crucial difference, though, is its model of care. Forward doesn't take insurance. Instead, patients, or "members," pay a flat $149 per month, along the lines of a subscription service like Netflix or a gym membership. That fee covers visits, messaging with medical staff through the Forward app, the use of a wearable (like a Fitbit or a sleep tracker) if the physician recommends it, plus any bloodwork or diagnostic tests run in the on-site labs. (The company declined to disclose how many people have signed up for memberships.)
Predictability is Forward's other significant, distinguishing feature: No surprise co-pays, or extra charges showing up on a billing statement months later. Everything is wrapped up in the $149 membership fee, unless the physician recommends visiting an outside specialist.
That caveat isn't a small one. It's important to note that Forward is in no way meant to replace standard health insurance. The service is strictly focused on preventive care, so it wouldn't be much use in case of an emergency; it's meant to help people, as far as is possible, avoid that emergency at all.
Ani Okkasian's family recently went through such an emergency. Her 62-year-old father, an active and seemingly healthy man living with diabetes, had been feeling unwell for a while, but struggled to receive constructive follow-up or tests from his doctor. It finally emerged that his liver was severely damaged, and he suffered a stroke — the risk of which can be elevated by liver disease. He seemed to deteriorate completely within mere weeks, Okkasian said, and in January he passed away.
"He was someone who'd go to the doctor regularly and listen to what they said and follow it," Okkasian said. "I shouldn't have had to bury my father at 62. I still believe to my core that his death could have been avoided if the primary care was adequate."
"I could tell that the people who designed [Forward] had lost someone to the legacy system; it was so streamlined and so much clearer."
Okkasian began researching, looking for a better alternative, and discovered Forward. Founder Aoun lost his grandfather to a heart attack; his brother's heart attack at age 31 was the impetus to start Forward.
"I could tell that that was the genesis," Okkasian said. "Having just lost someone, and having had to deal with different aspects of the healthcare industry — how complicated and convoluted that all is — I could tell that the people who designed [Forward] had lost someone to the legacy system; it was so streamlined and so much clearer."
So Who Is Forward For?
The Affordable Care Act mandates that evidence-based preventive care must be covered by insurers without any cost to the patient. Today, 30 million Americans are still living without health insurance; but for most of the population, cost shouldn't prevent access to standard, preventive care, says Benjamin Sommers, a physician and professor at the Harvard T.H. Chan School of Public Health who has studied the effect of the ACA on preventive care access.
For Okkasian and her family, it wasn't a lack of access to primary care that was at issue; it was the quality of that primary care. In 2019, that's probably true for a lot of people.
"How come all other industries have been disturbed except the medical industry?" Okkasian asked. "It's disturbing the most people. We're so advanced in so many ways, but when it comes to the healthcare system, we're not prioritizing the wellness of a person."
Is Forward the answer? Well, probably not for everyone. Its office are only in a handful of cities, and there are limits to how scalable it would be; it's unavoidable that the $149 per month charge restricts access for a lot of people. Those who have insurance through their employer might have a flexible spending account (FSA) that would cover some or all of the membership fee, and Forward has said that 15 percent of their early members came from underserved communities and were offered free plans; but for many others, that's just an unworkable extra cost.
Sommers also sounded a dubious note about a maximalist attitude toward data collection.
"Even though some patients may think that 'more is always better' — more testing, more screening, etc. — this isn't true," he said. "Some types of cancer screening, ovarian cancer screening for instance, are actually harmful or of no benefit, because studies have shown that they don't improve survival or health outcomes, but can lead to unnecessary testing, pain, false positives, anxiety, and other side effects.
"It's really great for people who are in good health, looking to make it better."
"I'm generally skeptical of efforts to charge people more to get 'extra testing' that isn't currently supported by the medical evidence," he added.
But relatively healthy people who want to take a more active approach to their health — or people who have frequent testing needs, like those using the HIV-prevention drug PrEP, and want to avoid co-pays — might benefit from the on-demand, low-friction experience that Forward offers.
"It's really great for people who are in good health, looking to make it better," Okkasian said. "Your experience is simplified to a point where you feel empowered, not scared."
Facial Recognition Can Reduce Racial Profiling and False Arrests
[Editor's Note: This essay is in response to our current Big Question, which we posed to experts with different perspectives: "Do you think the use of facial recognition technology by the police or government should be banned? If so, why? If not, what limits, if any, should be placed on its use?"]
Opposing facial recognition technology has become an article of faith for civil libertarians. Many who supported the bans in cities like San Francisco and Oakland have declared the technology to be inherently racist and abusive.
The greatest danger would be to categorically oppose this technology and pretend that it will simply go away.
I have spent my career as a criminal defense attorney and a civil libertarian -- and I do not fear it. Indeed, I see it as positive so long as it is appropriately regulated and controlled.
We are living in the beginning of a biometric age, where technology uses our physical or biological characteristics for a variety of products and services. It holds great promises as well as great risks. The greatest danger, however, would be to categorically oppose this technology and pretend that it will simply go away.
This is an age driven as much by consumer as it is government demand. Living in denial may be emotionally appealing, but it will only hasten the creation of post-privacy world. If we do not address this emerging technology, movements in public will increasingly result in instant recognition and even tracking. It is the type of fish-bowl society that strips away any expectation of privacy in our interactions and associations.
The biometrics field is expanding exponentially, largely due to the popularity of consumer products using facial recognition technology (FRT) -- from the iPhone program to shopping ones that recognize customers.
But the privacy community is losing this battle because it is using the privacy rationales and doctrines forged in the earlier electronic surveillance periods. Just as generals are often accused of planning to fight the last war, civil libertarians can sometimes cling to past models despite their decreasing relevance in the current world.
I see FRT as having positive implications that are worth pursuing. When properly used, biometrics can actually enhance privacy interests and even reduce racial profiling by reducing false arrests and the warrantless "patdowns" allowed by the Supreme Court. Bans not only deny police a technology widely used by businesses, but return police to the highly flawed default of "eye balling" suspects -- a system with a considerably higher error rate than top FRT programs.
Officers are often wrong and stop a great number of suspects in the hopes of finding a wanted felon.
A study in Australia showed that passport officers who had taken photographs of subjects in ideal conditions nonetheless experienced high error rates when identifying them shortly afterward, including 14 percent false acceptance rates. Currently, officers stop suspects based on their memory from seeing a photograph days or weeks earlier. They are often wrong and stop a great number of suspects in the hopes of finding a wanted felon. The best FRT programs achieve an astonishing accuracy rate, though real-world implementation has challenges that must be addressed.
One legitimate concern raised in early studies showed higher error rates in recognitions for certain groups, particularly African American women. An MIT study finding that error rate prompted major improvements in the algorithms as well as training changes to greatly reduce the frequency of errors. The issue remains a concern, but there is nothing inherently racist in algorithms. These are a set of computer instructions that isolate and process with the parameters and conditions set by creators.
To be sure, there is room for improvement in some algorithms. Tests performed by the American Civil Liberties Union (ACLU) reportedly showed only an 80 percent accuracy rate in comparing mug shots to pictures of members of Congress when using Amazon's "Rekognition" system. It recently showed the same 80 percent rate in doing the same comparison to members of the California legislators.
However, different algorithms are available with differing levels of performance. Moreover, these products can be set with a lower discrimination level. The fact is that the top algorithms tested by the National Institute of Standards and Technology showed that their accuracy rate is greater than 99 percent.
The greatest threat of biometric technologies is to democratic values.
Assuming a top-performing algorithm is used, the result could be highly beneficial for civil liberties as opposed to the alternative of "eye balling" suspects. Consider the Boston Bombing where police declared a "containment zone" and forced families into the street with their hands in the air.
The suspect, Dzhokhar Tsarnaev, moved around Boston and was ultimately found outside the "containment zone" once authorities abandoned near martial law. He was caught on some surveillance systems but not identified. FRT can help law enforcement avoid time-consuming area searches and the questionable practice of forcing people out of their homes to physically examine them.
If we are to avoid a post-privacy world, we will have to redefine what we are trying to protect and reconceive how we hope to protect it. In my view, the greatest threat of biometric technologies is to democratic values. Authoritarian nations like China have made huge investments into FRT precisely because they know that the threat of recognition in public deters citizens from associating or interacting with protesters or dissidents. Recognition changes conduct. That chilling effect is what we have the worry about the most.
Conventional privacy doctrines do not offer much protection. The very concept of "public privacy" is treated as something of an oxymoron by courts. Public acts and associations are treated as lacking any reasonable expectation of privacy. In the same vein, the right to anonymity is not a strong avenue for protection. We are not living in an anonymous world anymore.
Consumers want products like FaceFind, which link their images with others across social media. They like "frictionless" transactions and authentications using faceprints. Despite the hyperbole in places like San Francisco, civil libertarians will not succeed in getting that cat to walk backwards.
The basis for biometric privacy protection should not be focused on anonymity, but rather obscurity. You will be increasingly subject to transparency-forcing technology, but we can legislatively mandate ways of obscuring that information. That is the objective of the Biometric Privacy Act that I have proposed in recent research. However, no such comprehensive legislation has passed through Congress.
The ability to spot fraudulent entries at airports or recognizing a felon in flight has obvious benefits for all citizens.
We also need to recognize that FRT has many beneficial uses. Biometric guns can reduce accidents and criminals' conduct. New authentications using FRT and other biometric programs could reduce identity theft.
And, yes, FRT could help protect against unnecessary police stops or false arrests. Finally, and not insignificantly, this technology could stop serious crimes, from terrorist attacks to the capturing of dangerous felons. The ability to spot fraudulent entries at airports or recognizing a felon in flight has obvious benefits for all citizens.
We can live and thrive in a biometric era. However, we will need to bring together civil libertarians with business and government experts if we are going to control this technology rather than have it control us.
[Editor's Note: Read the opposite perspective here.]