1. Consumer Fraud

2. Discuss . . .
Personal Experiences?

3. Consumer Fraud
Lies or tricks designed to get you to part with your money for product or services that have little or no value

4. If it sounds too good to be true…it probably is!
Buyer Beware!
If it sounds too good to be true…it probably is!
90% of victims of consumer fraud never report it

5. Basic Patterns
You’re led to believe you’re getting something for “nothing” or a deal that sounds too good to be true.
Someone sells with such vigor you’re ready to pay. Stop and think about it.

6. Basic Patterns
You’re offered something that cannot be found anywhere else.
A fraud is announced in the media
People tend to trust newspapers and television ads.
Not all ads are truthful.

7. Bait and Switch
Bait- super deal to lure someone into a buying frame of mind
Switch- Salesperson diverts from the bait to another item that offers him/her a higher profit

8. Danger of the Internet Most common venue for consumer fraud.
Nothing has to be edited on the internet
Any type of fraud can happen on the internet

9. Vanity Rackets Mail Order Scams Prey on human desire to be recognized
Offer to publish books, songs, poems and sent to “producers”

10. Work at Home Mail Order Scams
Send money to employer or producer to receive instructions on task
Buy a product and assemble; company buys it back

11. On the Street
Phony Goods
Broken
Not a name brand

12. In the Home Telephone Cell phone Unknowingly charged for calls
Read plans/contracts
Can be cloned and minutes charged to your account

13. In the Home Scholarship scams 300,000 students have been affected
Money initially sent in for processing fees
Legitimate scholarship donors do not ask for upfront money

14. Home Improvements
Do not sign contracts unless you have detailed plans and specifications by a licensed contractor.
Do not sign any contracts until you have comparable bids from other licensed contractors based on the SAME plans and specifications.

15. Home Improvements
Approve contract with lawyer, friends, or family members.
Approve financing with bank before signing.
Do not pay cash deposit. Performance must come before payment.

16. Home Improvements Cooling Off Period
Allows you to cancel any contract and get full refund any time in the first 3 days.
Report to Attorney General or Better Business Bureau

17. Investments
Never agree to invest money from a solicitor (online/phone)
SPEAK THESE WORDS:
Please remove me from your list

18. Investments
Pyramid Scams- money is given and money can be solicited from others “below in the pyramid”.
If you enlist with 10 people and they each enlist with 10 and so on…by the 10th level, 10 billion people must be involved.
More people than on Earth

19. Leisure Abuse with Time Shares High pressure
Good incentives offered initially
Property not maintained
Overbooked

20. Leisure Vacation Deals Registration fee must be paid upfront
Sometimes paid with credit card
Use reputable travel agents
Work directly with travel institutions

21. Identity Theft Thieves will steal your: Name Address
Social Security Number
Driver’s License Number
Bank Account Numbers
Credit Card Numbers

22. Identity Theft What can they do with it?
Open bank or credit card accounts
Obtain car or home loans
Establish a phone service
Change mailing addresses for existing accounts and use them without your knowledge
Empty your bank account

23. How it occurs Dumpster Diving Stealing Wallets/Purses Stealing Mail
Pretending to be a representative of a company or a government official
Employee Theft

24. Tips to Prevent Identity Theft
Shred documents
Call OPTOUT and ask to stop credit card companies from sending pre-approved applications to your address. (2 years or permanently)
Ask your credit card company to stop sending “convenience checks”.

25. Tips, cont.
Review your credit report 3 times/year or if suspicion occurs.
Pick up mail ASAP
Mail important documents at PO

26. Top 10, cont. Copy everything in your wallet
Do not provide personal info unless you made the contact
Keep SS # safe
Delete s with personal information
Ask that your name be taken off telemarketers’ lists

27. Tips, cont.
Limit the number of credit cards you hold. Review your statements.
Save account records for one year to prove your balance in the event of ID theft.

28. Identity Theft If suspected call:
Illinois State Police 1 (217)
Safety Education Unit 1 (217)

29. Identify Theft Severe emotional consequences Issues trusting others
Emotional effects similar to Post Traumatic Stress Disorder

30. Weight Loss Scams Quackery Health/Diet Pills
Practice of offering uneducated advice with unrealistic “guaranteed” outcomes
Health/Diet Pills

31. Who are the most likely to be
victims of fraud?

32. Senior Citizens Finances Older women more likely to be targets
Older Americans have many concerns financially.
Signing a power of attorney or any document that allows another person to act on behalf of senior citizens must be taken seriously.

33. Senior Citizens Education
Senior citizens need to be educated on how use digital purchasing devices
Scammers will appear to “help” them
Those seniors who do not feel comfortable need a trusted friend or family member

34. Senior Citizens Medical Expenses (Medicare & Medicaid) Overcharging
Billing unnecessary items
Overcharging for items
Billing payments that have already been paid by insurance companies
$1 out of every $10 spent on Medicare and Medicaid is lost due to fraudulent claims (U.S. General Accounting Office).

35. Senior Citizens What can be done? Ask for itemized bill.
Call provider if you have questions about a bill.
Never give your Medicare number to anyone other than service providers you know.
For help call the Illinois Department on Aging Senior Help Line: