Dear Fellow Ohioans:
One of Ohio's most valuable resources is its aging citizens. As a group, they possess an immense array of knowledge and skills learned through hard work and experience. Unfortunately, this valuable asset is also one of the most vulnerable. Aging citizens have become targets for scammers and con artists. They have nest eggs, may be trusting of others, and often live alone. For additional information about how the Ohio Attorney General's Office protects Ohioans, visit their Website at www.SpeakOutOhio.gov or call their Help Center at (800) 282-0515.

Look out for scams!
Scammers use a variety of tactics to make their offers seem legitimate. Their initial contact usually occurs by telephone, letters, door-to-door solicitations, flyers, e-mails and phony Websites. They often try to convince consumers to send them money or give personal information, such as bank account numbers and Social Security numbers. Look out for the common signs of a scam listed below.


  • You've won a contest you've never heard of.
  • You're pressured to "act now!"
  • You have to pay a fee to receive your "prize."
  • Your personal information is requested.
  • A large down-payment is requested.
  • The company refuses to provide written information.
  • The company has no physical address, only a P.O. Box


Common scams

  • Advance Fee Loans
In this ploy, scam artists trick you into paying money to qualify for a loan. Scam artists may "guarantee" a line of credit or promise to deposit money in your bank account once you pay an initial fee. Despite these claims, however, you likely will not receive any money. You should never pay money to qualify for a loan.

  • Credit Repair Scams
These scams advertise on the internet, on TV and even on telephone poles that bad credit can be erased and debts can be consolidated. Many of them charge hundreds or thousands of dollars but do little or nothing to improve your credit. The reality is that these companies cannot erase accurate negative information from your credit report. With certain exceptions, negative information can remain on your credit report for up to seven years. If you want to improve your credit, contact a credit reporting agency or your creditor directly. You may be able to arrange a payment plan yourself-for no cost

  • Fake Check Scams
Someone sends you a check or money order. He asks you to deposit it to your account and then wire-transfer him the money, minus a nice bonus for you, a "thank you" for helping out. Regardless of the pitch, the result is the same: the check or money order you receive will be a counterfeit. It will be returned to your bank unpaid, and the full amount will be deducted from your account. Never send money to a stranger.

  • Foreclosure Rescue Scams
These scams target homeowners who are having trouble making their mortgage payments. A phony foreclosure rescue company might contact you and promise to negotiate with your mortgage lender. You pay thousands of dollars, but the company makes little or no contact with your lender.

A phony "investor" offers to buy your house and lease it back to you until you can afford your mortgage payments. The investor takes your money but does not transfer the mortgage loan or pay your lender. As a result, you risk losing your equity and your home.

  • Home Improvement Fraud
This occurs when contractors or companies don't complete the work they were paid to do. These scams often involve door-to-door contractors who offer to repair your roof, paint your house or fix your furnace. After you pay, however, the contractor disappears without doing any work or doing a poor job on the repairs.
Home improvement scam artists say that they will give you a model home discount, free furnace inspection, or have leftover supplies from repairing another house in the neighborhood. These false promises are tricks to steal your money. To avoid scams, research reputable contractors, don't make large down payments, and avoid paying in cash, as credit cards offer stronger protection if something goes wrong.

  • Identity Theft
This occurs when a criminal uses someone else's personal information, such as a credit card number, bank account number, insurance information, or Social Security number, to purchase goods or service fraudulently. Often, criminals commit identity theft by opening new accounts in a consumer's name, purchasing products, and then leaving the consumer to pay the bill. To help prevent identity theft, never give personal information to anyone you don't know or trust.

  • Living Trust Scams
A living trust is a legal arrangement where assets are transferred into a trust while the consumer is still alive, which keeps the assets from going through probate court when the consumer dies. Trusts can be useful estate planning devices, but scam artists have been known to make exaggerated or false claims about probate costs or about the tax advantages of living trusts. These scams usually target lower income consumers, whose limited estates likely would incur minimal probate costs, by using high-pressure sales tactics.
If you or someone you know is considering buying a living trust, consider all your estate planning options and be wary of "one-size-fits-all" offers. Contact an attorney directly for individual advice before signing any contracts or making any purchases. There are also legal aid programs that offer free help for seniors. Never buy legal services from door-to-door salespeople or telemarketers.

  • Investment Fraud
A scammer might offer you a "risk-free" investment only to steal your money. For example, some scam artists convince consumers to invest in coins and precious metals, such as gold. Remember, all investments involve risk. Consult with trusted family members or friend before making important financial decisions.

  • Phony Charities
You receive a call or letter asking you to make a charitable donation from someone who is only pretending to represent a charity. Always ask how much of your donation would actually go to the charity. Charitable organizations must register with the Ohio Attorney General's Office. Before you donate, verify that the charity is legitimate by calling Ohio Attorney General Richard Corday's Help Center at (800) 282-0515.

  • Predatory Lending
Customers get into loans they cannot afford. For example, you might sign a loan for a new house thinking you are getting a good deal. Periodically, however, your mortgage payments increase, and you realize you owe more than you can pay.
Signs of predatory lending include: repeated refinancing, balloon payments, inflated appraisals, misrepresented interest rates and fees, loans that do not benefit the consumer, and loans that a consumer cannot repay.

  • Prizes/ Sweepstakes Fraud
Someone may fictitiously claim that you have won the lottery, a contest or other prize. In order to collect your winnings, however, you'll be asked to pay a fee. Often, you'll be instructed to send money via wire transfer or money order, possibly to a foreign country. They'll tell you to expect your winnings once you pay, but the prize never arrives. Remember that legitimate sweepstakes are free and require no purchases.

  • Reverse Mortgage Abuse
This is not a scam; it is a loan that allows older consumers to convert home equity into cash. However, some unscrupulous salespeople might pressure you into taking out a reverse mortgage that has very high fees. Others tempt you to use money from the loan to buy annuities or investments that may not benefit you.
Do not take out a reverse mortgage unless you fully understand all the costs, terms and conditions. Keep in mind that as interest charges are added to your loan, the total amount you owe will grow over time.

  • Sale of Annuities
Consumers who buy a living trust should be wary of salespeople who come back and offer additional services such as an annuity. When you buy an annuity, you give a large sum of money to an insurance company, and it pays you back on a regular basis, usually for as long as you live or for a specific period of time.

There are many different kinds of annuities and buyers should clearly understand which type of annuity they are buying, how much money it will cost them, when the company will be paying the money back, and any risk factors involved. Dishonest, high pressure salespeople will charge high fees and sell deferred annuities that often are not suitable for the consumer's current age and financial situation. Read all the terms and conditions and seek advice from people you trust before making a major financial investment.

  • Work-at-Home and Business Opportunity Ploys
These scams use sales pitches claiming that you can make good money working from home or getting involved in a business opportunity. You will be urged to up-front for materials or start-up costs. Ultimately, the only people who will profit are the scam artists. Beware of seminars that promise money making advice but deliver only high-pressure pitches.













Signs of a Scam:
  • You've won a contest you've never heard of.
  • Your pressured to "act now!"
  • You have to pay a fee to receive your "prize."
  • Your personal information is requested.
  • A large down-payment is requested.
  • The company refuses to provide written information.
  • The company has no physical address, only a P.O. box.
  • They insist you pay in cash.
PROTECT YOURSELF

You're already doing the right thing by staying informed about the latest consumer scams.
Following are the most important quick tips remember to stay safe and protect your pocketbook:
Research businesses and charities: Before doing business with a company, check its reputation with the Ohio Attorney General's Office and the Better Business Bureau. You also should ask family for recommendations of businesses and charities. Never do business with a company that refuses to give you information in writing or one that refuses to give you a phone number, a physical address or references. Check with the Ohio Secretary of State to make sure a company is registered as a business in Ohio.

Read the fine print: Read all the terms and conditions of any agreement before you sign. Look for exclusions. Always get warranties in writing. Review contracts with a trusted attorney, friend or family member. Monitor your financial accounts. If a fraudulent charge appears on your bank statement, immediately notify your bank.

Remember your rights: Ohio consumer law protects you from unfair, deceptive and unconscionable practices in consumer transactions. For example, advertisements must list a sale's exclusions and limitations, and a store must post its return policy, if it has one. In Ohio, it is illegal to charge a fee for a prize. If you've actually won something, you won't need to send any money to get it.

Reconsider the purchase: Take your time before you make a decision. Never give personal information to someone you don't know or trust, even in a contest. Ask companies how they will use your personal information and ask them not to sell your information. Don't give in to high pressure sales tactics. If it sounds too good to be true, it probably is. Never sign anything you do not understand. Ask questions and demand answers.

Report fraud: If you have a problem with a purchase you made, notify the company in writing. Explain your complaint, the facts of the situation, the resolution you desire, and give a deadline for the resolution. If you suspect fraud or if you cannot resolve the problem on your own, file a complaint with the Ohio Attorney General at www.SpeakOutOhio.gov or call (800)282-0515.

NEED MORE INFO?
Check out these trusted resources for more information to protect yourself from consumer fraud.

  • CREDIT
Get your free credit report. You're entitled to one free copy of your credit report each year from each of the three credit reporting companies.
Contact:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
(877) 322-8228
annualcreditreport.com

  • IDENTITY THEFT
Report ID theft to law enforcement. If you are a victim of identity theft, file a police report and ask them for an application to Ohio Attorney General's PASSPORT program that provides official identification to victims of identity theft.
Contact:
(888) MYID4ME
(888) 694-3463

Notify your bank and creditors and add a fraud alert. You can add a fraud alert to your credit report to help prevent further fraudulent activity and warn potential creditors that you have been a victim of identity theft. An initial fraud alert is free and lasts for 90 days (after which you can renew it), and it requires creditors to verify your identity before issuing credit in your name.

  • CONSIDER FREEZING YOUR CREDIT
If you think your identity has been stolen, activating a credit freeze will allow you to gain control of you credit information. A credit freeze differs from a fraud alert because it does not have a time limit and it is available to anyone, not just victims of identity theft. It also provides you with a personal identification number or password to use if you choose to remove the credit freeze on your credit report or to temporarily authorize the release of your credit report. You may be charged a fee of up to $5 to place or remove a security freeze. There is no charge for victims of identity theft.
Contact:
To place a fraud alert or credit freeze on your credit report:

  • FORECLOSURE
Save the Dream connects qualified homeowners going through foreclosure with a local HUD-approved housing counseling agency, a local legal aid office, and, if eligible, they will be matched with a pro bono attorney.
Contact:
(888) 404-4674
savethedream.ohio.gov

  • LEGAL ASSISTANCE
Pro Seniors is a non-profit organization that provides free legal and long-term care help to older adults. Their Legal Hotline provides free legal information, advice, and referral for residents of Ohio age 60 and over.
Contact:
(800) 488-6070
proseniors.org

  • UNWANTED SOLICITATIONS
Reduce telemarketing calls by registering with the National Do Not Call Registry. Registration is permanent unless you remove your number from the list.

Most telemarketers must stop calling you once your number has been on the registry for 31 days. However, charities, political parties and companies with which you do business (even if you just enter their contests) are exempt from the law. They may call unless you tell them to put you on their internal do not call list.
Contact:
(888) 382-1222
(TTY 1-866-290-4236)
donotcall.gov

  • UNWANTED MAIL
Reduce the amount of mail you receive from national catalog/ marketing companies by registering with the Mail Preference Service from the Direct Marketing Association. The organization also offers an e-mail preference service and do-not-contact service for the sick, disabled or deceased.
Contact:
Mail Preference Service
1120 Avenue of the Americas
New York, NY 10036
(212) 768-7277 ext. 1500
dmachoice.org

Limit pre-approved credit card solicitations with the three national credit reporting agencies by registering with Opt Out Prescreen.
Contact:
(888) 5OPT-OUT
optoutprescreen.com

Ohio Attorney General
Richard Cordray

Consumer Protection Section
30 East Broad Street, 14th Floor
Columbus, Ohio 43215

For more smart consumer tips, or to share a tip or two of your own, visit www.SpeakOutOhio.gov or call Ohio Attorney General Richard Cordray's Help Center at (800) 282-0515

For TTY Users, please call Relay Ohio at (800) 325-2223