Fraud complaints have risen dramatically across the country and Arizona residents reported more than 15,000 consumer fraud complaints to the Attorney General in 2021. The Federal Trade Commission reported that social media scams alone cost US consumers more than $770 million last year. As scams and fraudulent schemes become more prevalent, we wanted to put together some simple tips to help people understand common types of fraud, simple ways to protect your family and what to do if you are the victim of fraud in Arizona.
Common Types of Consumer Fraud
Most people understand that fraudulent schemes and scams are more common than ever, but they might not be aware of the common ways that people fall victim to consumer fraud. Here are some of the common types of consumer fraud that everyone should know:
- Phone and Text Scams – The most common consumer fraud is telemarketing and phone scams. Since most people have a cell phone and computer programs have made it easier than ever to automate outbound telemarketing, phone scams have grown substantially over the past decade. These scams range from people impersonating government agencies, like the IRS, to offering deals that are simply too good to be true. Text scams have become much more common over the past few years as well. As a simple rule, do not respond to unsolicited text messages from unknown numbers. If it is real or important, they will find other ways to get a hold of you. Most of the major cell phone carriers have a number to report spam texts and calls, like this service provided by AT&T here.
- Car Sales Scams – Used car sales have become prevalent sources of consumer fraud. Sites with online marketplaces allow anyone to post a car for sale at any price without any verification. When you reach out to discuss, you get a common response about them selling the car for a family member and many people are interested so you need to quickly provide them a down payment with all your information if you do not want to miss out. Do not fall victim to this common scam. Take the time to check out the car in person, verify the title and notarize the sale if you decide to move forward with the purchase.
- Mortgage and Real Estate Fraud – With so many people looking to buy property in Arizona, mortgage and real estate fraud have become more prevalent as well. The American Land Title Association put together an excellent breakdown of the most common types of mortgage fraud here. As it becomes tougher to qualify for mortgages with higher interest rates, we are likely to see increases in mortgage and real estate fraud.
- Email Phishing and Computer Scams – Email phishing and computer scams have been prevalent since the onset of the internet, but many software programs have made it easier for scam artists to automate their fraud campaigns. This means that almost everyone that has an existing email account is receiving phishing scams that mimic popular websites. There are also many internet fundraising scams that ask you to donate to a cause you have shown support for and hide terms in small print that sign you up for recurring charges.
- Home Improvement and Construction Fraud – As demand for construction projects and home remodels has grown in Arizona, the amount of construction and contractor fraud has increased as well. We posted a previous article on the dangers of working with unlicensed contractors and the potential for construction defects in Arizona. The most important thing to keep in mind when hiring a contractor or builder is making sure they are licensed to work in Arizona. A simple search on the Arizona Registrar of Contractors website allows you to confirm they are licensed professionals.
- Identity Theft – Recent reports show that cases of identity theft doubled from 2019 to 2020. Identity theft can be hard to completely protect against, but there are simple ways to watch for the early signs. Make sure to review your credit reports, bank and credit card statements regularly. Follow up on any suspicious calls, text or emails that lead you to believe accounts might have been opened in your name. Do not give your information to someone calling you. Instead find the best contact information for any involved company online and call them to inquire about any accounts in your name.
This list is certainly not exhaustive and fraudsters continue to find new ways to steal from unsuspecting consumers. It is understandable to feel overwhelmed by the regular flow of scams and fraudulent schemes, but there is hope for those willing to take some precautions.
Ways to Protect Against Common Types of Consumer Fraud
There are many simple steps to help protect you and your family from common types of consumer fraud. The first and foremost way to avoid fraud is taking the time to research anything that seems suspicious. If you receive a call or message offering something that seems too good to be true, it probably is. There are many websites that track phone numbers and emails used in common scams. A simple search of the phone number, email or general message will likely turn up some results if it is a scam. If it does not show any results, that is also equally suspicious in this day and age. Most people have some kind of online presence and any legitimate business will have information available online.
The next simple step before buying into any proposed offer or giving out any information is to speak with family and friends about it. If you are not computer savvy, reach out to someone who can help with some online research. Many times, simply discussing what happened or what was offered to you will help expose a common scam. Nearly anything that is not a scam will allow for the opportunity to research and contemplate the offer. Anything that relies heavily on the fear of missing out or high pressure sales should probably be avoided. Even if it’s not a scam, you can likely find comparable items or offers without the pressure to buy now.
There are online tools to help protect against fraud now as well. The three credit reporting agencies have monitoring services and offer the option to freeze your credit if you do not plan on making any upcoming purchases. Using the free tools available on those sites and getting your free credit report at AnnualCreditReport.com is a great starting point to protect against common types of identity theft.
Steps to Take if You Suspect Are the Victim of Consumer Fraud
If you suspect you are the victim of consumer fraud, it is essential to act quickly. You will need to take detailed notes on the suspected fraud and review your financial accounts. Whenever you suspect a fraudulent actor has gained access to any financial accounts, it is important to change all your key passwords to your email, bank, creditors, and work as soon as possible. It is a good practice to routinely change passwords, especially if you have been notified that your information was involved in a data breach or hack. This step will only take a few minutes, but it can cut off scam artists before they do further damage.
Report the fraud to any bank accounts or impacted accounts immediately and then federal and state authorities as soon as possible. The Federal Trade Commission has a simple online form to report any fraud and it is distributed to more than 3000 law enforcement agencies. The Arizona Attorney General’s office has a website and process for reporting any scams or fraud in the state. This is an important point to get assistance from family members or friends if you are not comfortable with computers. In the case of more serious or substantial cases of fraud, it is advisable to hire an experienced attorney to make sure the fraud does not permanently impact your life or put your personal property in jeopardy.
RSN co-founder Robert Rutila was recently interviewed by 3 TV/CBS 5 about the lack of follow up on consumer complaints submitted to the Arizona Attorney General’s office over the past few years. Attorney General Brnovich sent a letter to Governor Ducey warning that enforcement of new state laws was taking limited resources away from consumer protection efforts. This report highlighted the importance of addressing the fraud as soon as possible and understanding you cannot count on state agencies to solve the matter for you.
Find an Arizona Attorney to Address Consumer Fraud
Finding out that you are the victim of fraud can be debilitating. It is understandable to throw your hands in the air and wonder how you will ever recover. While you might feel like giving up, it is essential to address the matter immediately or get help from someone that can address it properly for you. The attorneys at RSN Law have represented clients dealing with many types of fraud. Our firm can help you report the fraud and handle the details required to blunt the potential damage from a scam. RSN attorneys can represent you in pursuing full restitution and restoring your good name and financial standing. Contact the experienced attorneys at RSN Law today at 480-712-0035 to schedule an initial consultation or make an appointment on our contact page.