Consumer Fraud - Tips for Consumers

For further information, visit the Cook County State's Attorney web site

About Con Artists and Scams:

BE AWARE that the goal of a con artist is to separate you from your money. Con artists are often well dressed, talkative, intelligent, and persistent. They frequently target the elderly and persons of their own ethnic heritage.

BE WARY of unsolicited and hurried sales opportunities. Take the time to shop around for goods and services and don't be pressured into making on-the-spot decisions. Don't make decisions based solely on price. Don't trust anyone who says, "This price is available only if you sign today." Remember that good deals are like buses - there will always be another.

DON'T BE AFRAID to say "NO!", close your door, hang up the telephone, or throw away solicitations.

DON'T BELIEVE anyone who claims that you've won a contest that you did not enter, especially from an out-of-state company. Remember, that if you have to pay fees, taxes, or order merchandise to receive your "prize", it's probably a con.

BE SKEPTICAL about a company that only uses a post office box with no street address or telephone number. If you are given a telephone number, it's a good idea to check whether it is listed in the company's name. You may do this by calling the reverse directory service at (area code) 796-9600 and punching in the telephone number.

BE CAUTIOUS about doing business with a new or troubled company. Take time to investigate a company. Don't hesitate to ask for references, identification and licenses. Call the Better Business Bureau of Chicago & Northern Illinois to obtain a reliability report about a company at (312) 832-0500.

READ CONTRACTS carefully before signing. Make sure that all of the important promises and representations made to you by the salesperson are written in the contract.

DON'T SIGN a contract that contains blank spaces and always get a copy of the contract you signed. Keep in mind that the three (3) day "cooling off" period generally applies only to contracts signed at your home. Consider all other contracts to be final.

About Avoiding Home Repair Fraud:

FIND A REPUTABLE CONTRACTOR through referrals from satisfied customers or through recommendations from local utility companies, local building inspectors or your insurance company. Ask the contractor for references and a written estimate.

DON'T PAY IN ADVANCE for the entire job before the work has started and don't make a final payment until you are satisfied. Note, however, that advance payment of a small deposit or for building materials is customary and fair.

BE SKEPTICAL of anyone who claims to have just completed a nearby home repair job and offers you a great price because there are leftover materials.

INVESTIGATE to determine if the contractor is properly licensed and insured. Contact your local building inspector and the Better Business Bureau of Chicago & Northern Illinois (312-832-0500) to obtain a reliability report about the contractor.

OBTAIN LIEN WAIVERS from the general contractor. Suppliers and subcontractors have a right to file a lien against you if the general contractor fails to pay them.

EXERCISE GREAT CARE in taking out a home equity loan for home repair work - you could lose your home if you default. Pay attention to the "Total of Payments" or the "Total Sale Price" shown in the loan documents. Often the total amount you'll owe for the loan will be double or even triple the amount you borrowed after fees and interest payments are added.

About Identity Theft

Stealing someone's identity to buy everything from cars, consumer goods, and mortgages, while leaving the victims credit rating in ruins is one of the fastest growing crimes in America. Most victims don't even know how the offender got their personal identity information. The Cook County State's Attorney's Office prosecutes persons charged by law enforcement agencies with offenses relating to identity theft. In 1999, Cook County State's Attorney Richard A. Devine proposed legislation to better protect the victims of identity theft. The legislation - which makes identity theft a crime - was signed into law August 1999 and is effective immediately.

What is identity theft?

Identity theft is the unauthorized use of another person's personal identifying information (name, address, date of birth, social security number, mother's maiden name, etc) to commit financial fraud. Upon obtaining such personal identifiers, identity thieves are able to commit financial crimes such as opening phony bank accounts, getting unauthorized credit cards, applying for car or house loans and leasing apartments with a false name. Identity thieves may even develop a criminal record or file bankruptcy in their victim's name. Their goal is to spend as much money as possible before the victim becomes aware of the theft.

How criminals get your personal information
- Ordering your credit report
- Digging through your garbage (dumpster diving)
- Stealing mail from your mailbox
- Stealing your wallet
- Retrieving information from the Internet

Information to guard from identity thieves
- Social Security Number
- Birthdate
- Driver's License Number
- Mother's Maiden Name
- Current and Past Addresses
- Credit Card Numbers
- Personal Identification Numbers and Access Codes
- Passports
- Firearms Identification Cards
- Employee Identification Cards

Prevention Tips
- Don't give out your social security number unless necessary. Never print your social security number on your checks or drivers license.
- Request your credit report at least once a year and check for any unauthorized activity.
- Shred personal documents before putting them in the trash (especially pre-approved offers of credit).
- Don't have checks delivered to an unlocked mailbox.
- Don't place mail that contains personal identifiers in an unlocked mailbox.
- Don't carry unnecessary credit cards, your social security card, birth certificate or passport, in your wallet or purse except when absolutely necessary.
- Never give out your credit card number or other personal information over the phone unless you have a trusted business relationship with the company and you initiated the call.
- Carefully review your credit card statements and phone bills for any unauthorized use.

If you become a victim of identity theft:
- Immediately contact the fraud units of the three credit reporting bureaus listed below (see Resources). Ask for a credit report so that you can identify fraudulent activity. Also ask the bureau to flag your account with a fraud alert to indicate that you have been a victim of a fraud.
- Make a report with law enforcement departments with jurisdiction in your case.
- Contact all creditors with whom your name has been used fraudulently by telephone and letter.  Enclose a copy of your police report.

If you have checks stolen or a bank account has been fraudulently established in your name, report it to the six check verification companies listed below (see Resources). Stop payment on all outstanding checks and cancel your checking and savings accounts.

If someone obtains your social security number, call the Social Security Administration (see Resources).

If someone obtains a driver's license in your name or is using your driver's license number, contact your local Department of Motor Vehicles and ask to put a fraud alert on your license and request a new number.

Resources