Tag Archives: Consumer

Home Improvement Fraud Has No Boundaries

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By Cristina Leiva

A National Consumer Protection Week feature. “National Consumer Protection Week (NCPW) is a time to help people understand their consumer rights and avoid frauds and scams” (FTC). 

Fraud has no boundaries: Protect your home from home improvement fraud.
Protect Your Home from Home Improvement Fraud

Improving your home can be an overwhelming process to complete on your own. Turning to a contractor can help relieve the stress, but homeowners should be aware of the existence of home improvement fraud.

Home improvement fraud happens when a contractor promises to improve your home, but leaves the project incomplete or your home in an uninhabitable condition.

Before hiring a contractor for a home improvement project, do your research:

  1. Start by reviewing the Vermont Attorney General’s Home Improvement Fraud Registry where you’ll find the names of individuals who have been criminally convicted of committing home improvement fraud in Vermont.
  2. Check the Secretary of State’s website to verify that the residential contractor is registered, as required by Vermont law.
  3. Review complaint history posted on websites like BBB.org.
  4. Contact the Consumer Assistance Program (CAP) and ask if any complaints have been filed against the contract you are considering.
  5. Ask your friends, neighbors, family, and co-workers about their home improvement experiences. These individuals are more than just connections; they are resources that can provide contractor references and warnings.

Tips for avoiding home improvement fraud:

  • Ask the contractor for references. Then, call the references and ask detailed questions about the work done, satisfaction, price, the time it took to complete, and how they found the contractor.
  • Find your contractor through trusted family or friends or trusted websites.
  • Pay in increments rather than a large sum/total payment upfront.
  • Once you’ve chosen who you want to hire, determine the exact timeframe and the estimated price for the job. Compare this price to makeups for similar projects (get at least three estimates).
  • Get all agreements in a written contract. Verbal statements are difficult to prove.
  • Keep your down payment to a minimum.
  • If possible, make your payment upon completion of the work; or at least make payments as the equivalent portion of the work is completed. That way, if the contractor walks off the job, you haven’t lost any money.
  • Don’t make the final payment until you are completely satisfied with the work.
  • Always request proof of insurance.

Warning signs of less than reputable contractors:

  • Door-to-door solicitations.
  • Claims that the contractor was passing by and noticed a problem with your home.
  • Discounts for finding other customers or to use your home as a demo model.
  • Offers a good price for materials left over from a previous job.
  • Only accept cash payments.
  • Uses high-pressure sales tactics and demands a decision on the spot.
  • Asks you to pay for the entire job or a substantial portion of the job up front.
  • Suggests that you borrow money from a lender the contractor knows.
  • Refuses to provide proof of insurance or legitimate contact info.

Before hiring a contractor, you should know that while Vermont law does not require all home improvement contracts to be in writing, you can request a written contract outlining the terms of the agreement. If there isn’t a written contract, the contractor may disclaim liability for complications, or dispute the agreed-upon terms. When considering a contract, it’s best to read each page and verify acceptance before you sign it. Fraudulent contractors could conceal important documents underneath the agreement that could have dire consequences, including the loss of your home.  

Avoid home improvement by: Ask trusted family, friends, and neighbors for references. Get a list of clientele recommendations from the contractor. Research online and read reviews: Check online and CAP complaint history and the HIF Registry. Contract Tips: Get it in writing! Pay in increments rather than full payment. Avoid: Door-to-door solicitors. High-pressure sales. Requirements to pay for the entire job or a substantial portion of the job up front. VT Consumer Assistance Program. 1-800-649-2424.
Avoid Home Improvement Fraud by the Consumer Assistance Program

If you have a problem with a home improvement project or want to research a contractor before hiring them, contact CAP for assistance by visiting ago.vermont.gov/cap or by calling 1-800-649-2424.

ADDENDUM: As of April 1, 2023, registration of certain residential contractors is required. Learn more about the requirements from the Office of Professional Regulation of the Vermont Secretary of State. 

Residential Contractor FAQs: https://sos.vermont.gov/residential-contractors/residential-contractor-faqs/ 

Residential Contractor Statutes, Rules & Procedures: https://sos.vermont.gov/residential-contractors/statutes-rules-resources/ 

Wretched Robocalls 

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By Crystal Baldwin  

A National Consumer Protection Week feature. “National Consumer Protection Week (NCPW) is a time to help people understand their consumer rights and avoid frauds and scams” (FTC).

Ten years ago, the influx of scam calls through automation began. In two days, the Consumer Assistance Program (CAP), which traditionally logged around twenty scam reports per month, received hundreds of scam reports over two days. By the end of 2012, CAP averaged 145 scam reports per month. Of the first robocalls Vermonters reported were the card services scam, which claimed interest rates could be lowered on their bank credit cards. Next came claims of free gift cards from a specific retailer, who was offering nothing of the sort. What soon followed was a rush of new scams; claims that free life alert devices were available, the infamous IRS scam (responsible for 4,261 reports in 2016), which morphed into the SSN phishing scam, and countless others. Reports of scams have not dropped below the 5,000 mark since before 2015 in large part due to robocalls. After nearly a decade, it’s clear these calls are not going away on their own.   

While scam nature varies, the one thing these scams have in common is the criminal use of expanded phone technology. In short, scammers have learned how to manipulate our phone systems to make millions of unscrupulous calls per minute. As long as they continue to make money, they will continue to call with enticing offers and troubling spiels.  

How a Robocall Gets to You – Consumer Assistance Program – Learn more

Telltale signs of robocall scams: 

  • A computer/automated/robot voice 
  • Pressure to act immediately 
  • A request for something: your information/your money 

To the demise of the robocall scam industry, there are steps you can take as a consumer advocate to avoid these calls. By being aware and not engaging with these calls and making these scams less successful, you are doing your part to stop robocall scams. Learn more about stopping scams by opening the Blocking Unwanted Calls tab on CAP’s website. You can also listen to a previously recorded Vermont Edition about stopping and blocking robocalls.

Here’s what you can do when you receive an unknown call: 

  • Pause:  Take time to reflect – if a call is unexpected, disengage. 
  • Take steps to verify by making note of the contact and doing research, including checking a trusted source. 
  • Discuss scams with friends and loved ones regularly. Storytelling induces learning. The simple act of communicating with others about scams can help prevent others from becoming victims.  
  • Keep on reporting them. Our office has been part of a bipartisan taskforce of attorneys general and federal law enforcement to relieve consumers of unwanted calls. Your robocall reports are used to aid this taskforce in tracking down criminal syndicates. 

With the help of federal authorities and a large U.S. voice provider, our office has been able to track down US intermediaries and hold them accountable for sending scam calls to your phone. 

You can help stop robocalls by reporting them to the Consumer Assistance Program: CAP’s online scam reporting form.  

When Love is a Scam

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By Crystal Baldwin

Love fills us with joy, lifts us up, and makes us feel alive. As determined by a recent Stanford University study, for many, love is found online.  

Says "Click for Love" with Heart and Clouds

Technological advances and the move of our social lives and networks to online platforms has shifted the dating world to unchartered territory–online dating websites (Match, Zoosk, OurTime, Plenty of Fish, OKCupid, eHarmony), dating apps (Bumble, Tinder, Hinge), gaming platforms (Words With Friends, Sociable, Yahtzee with Buddies) and unassuming networks (Facebook, Instagram). As if the dating world were not challenging enough to navigate. Now, those looking for love must also learn how to create a true connection through tech, while avoiding scammers.

New data from the Federal Trade Commission show that more consumers than ever report falling prey to romance scammers. 

Consumers reported losing $547 million in 2021 alone.

Reported losses to romance scammers were up nearly 80 percent compared to 2020.

Federal Trade Commission
Avoiding the Romance Scam Video – Learn more at ago.vermont.gov/cap/romance-imposter

At the end of last year, our office released a video and toolkit alerting Vermonters about imposter romance scams that can take place on dating platforms. Before looking for love online, check out the video and tools we created to help you to identify unscrupulous love interests and relationships of confidence.

You can find love online and avoid scams. Print out our helpful verification flyer and reference it often.

To avoid romance scams...Search the internet to verify a person's identity. Never send money/personal information to someone you have not met in person. Don't trust anyone who: refuses to provide additional photos of themselves. Requests money for financial support. Refuses to chat with you through webcam. Provides excuses as to why you can't meet.
Tips to avoid romance scams by the Consumer Assistance Program

If you or someone you know has encountered a scam in Vermont, report it. Use CAP’s online scam reporting form and visit the our scam recovery webpage.  

Help us stop these scams by sharing this information with those you care about. 

Resources: FTC.gov, news.stanford.edu

Your Face is Data. What Can Scammers Do with it?

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By Cristina Leiva

How often do you use your face to unlock your phone? Gain access to your bank account? Turn on your car? With the evolution of technology, facial recognition software has become essential in our everyday activities. A simple scan of your facial features can provide access to so much. This realization came to me as a consumer reported an incident where a scammer asked her to download a facial recognition app and submit a scan of her face.

“Criminals who have collected enough personal information on you could commit identity fraud.”

Equifax

Your face can be used in crimes, either targeting you or as an accomplice to one. The Wall Street Journal recently reported on synthetic identity fraud: “a fast-growing type of financial crime where fraudsters use an amalgamation of real and fake information to create a new identity.” Thanks to your facial features, a scammer can bypass facial authentication systems, making the scammer’s face challenging to identify, because “attackers are typically unwilling to use their real face when committing a crime.” And who’s to say you didn’t commit a crime when your face is all over the issue?

There are numerous concerns about the fraudulent activity that can occur because of criminals gaining access to your face. Thankfully there are already a few companies working on this issue:

  • Apple’s camera projects more than 30,000 invisible dots to create depth maps of a person’s face while also capturing an infrared image of the face making it the most difficult to fool, and it’s also good to note that a user’s Face ID never leaves the iPhone.
  • Some banks and financial service companies use third-party facial identification services and request additional verification information; if it so happens that the facial ID is not recognized and gets flagged, a human reviewer will take a look and conclude the analysis.

Your face can be captured anywhere; all that is needed is a clear image. There’s a lack of privacy on how individuals can gain access to your face because your face can be captured just by walking past a camera outside—you likely aren’t aware of it.

What can you do?

Always be careful about who you allow access to your face.

Avoid Facial Identity Fraud: -Be mindful of where you post pictures of your face online and set profiles to private to help protect your identity. -Use two-factor authentication when it’s available-Use facial recognition sparingly and only with companies you know and trust-Do reverse-image searches of your face online to see if it shows up in unexpected places-Monitor your credit report and financial accounts and review for suspicious activity to determine if financial theft is occurring
Avoid Facial Identity Fraud – Tips from the VT Attorney General’s Consumer Assistance Program

Navigating the identity theft recovery process can be overwhelming. Vermonters with questions about the process can call the Consumer Assistance Program at 1-800-649-2424 or the Federal Trade Commission at 1-877-438-4338. 

Content Editor: Crystal Baldwin

Resources: Equifax, The Wall Street Journal, WeLiveSecurely.com

Introducing: Family Imposter/Emergency Scam Prevention Videos

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By Crystal Baldwin

Family Imposter: Know your relationships-take steps to verify

“I need help…”
“I’m in prison…” 
“I’m in the hospital. I need help…” 
“I had a bad car accident, and people are injured…” 

No matter what the scammers say when they initiate the family imposter/ emergency scam, it is sure to spike emotion. Scammers call, claiming to be one of your most cherished loved ones—your grandchild—and ignite fear that those you care about are in dire need. With emotions running high, how can you not engage with the call, stay on the line, and find out more? You are worried and feel helpless because all you have to validate this story is the phone in your hand and the fear of what if.   

What if you do nothing and your grandchild really is in trouble?

:30 – Avoiding the Family Imposter Scam video. Hear the whole story at https://ago.vermont.gov/cap/scam-prevention-through-awareness-and-education/family-imposter-scams

I considered these very questions when writing the script for the newly released Avoiding the Family Emergency Scam videos. I recalled the stories of actual Vermont families receiving such alarming calls in the middle of the night with nothing to go on but the urgency of the call, the deep love for their family member, and the desire to resolve the issue at hand. As our volunteer actress, Ruth Wallman, relays as the unsuspecting grandparent in the video, “What was I supposed to do? He needed my help!…I like to be there for my family. But, this just went too far.” 

Slow Down: Scammers pressure you to act urgently. Don't! Regain your calm. Log the Contact: write down the info of the contact and disengage. One Call: make One Call to a primary contact to discuss the incident. Warn others by sharing your scam story and report scams to help prevent them. The Consumer Assistance Program (CAP) at 1-800-649-2424 is your local Vermont resource for scam prevention.
The SLOW method. Share this strategy with someone you care about.

In creating this video series, I hoped to help Vermont families find a way to still be there for their families when emergencies arise by arming them with useful verification strategies to decipher between a scam and an actual family crisis. Verification of the family imposter scam starts with the SLOW method, a scam response strategy I created specifically to pause and identify scams. It urges people to Slow Down, Log the Contact, make One Call to a primary contact to discuss the incident. Warn others by sharing your scam story and report scams to help prevent them. The Consumer Assistance Program (CAP) at 1-800-649-2424 is your local Vermont resource for scam prevention.

:60 – Avoiding the Family Emergency Scam video. Hear the whole story at https://ago.vermont.gov/cap/scam-prevention-through-awareness-and-education/family-imposter-scams

Engaging with others is a crucial verification step, because scammers often demand secrecy in family emergency scams and make would-be valid claims that they would be too embarrassed or ashamed, or afraid of ensuing punishment if other family members were made aware of the damning incident. 

Family support and open, frequent communication among families is essential to putting an end to the family imposter/emergency scam. If questions remain, family cannot be reached or communications are limited, contacting a third-party organization, like CAP is the next best step. CAP is familiar with scams and can help to identify them. By contacting CAP, you can also make a scam report, which helps our office identify and alert the public about scam trends.  

Help protect yourself and others by taking time to watch the video. Review the information on our website, and encourage those you care about to learn more about scams and prevention strategies to stop them.   

Avoiding the Family Emergency Scam video. Learn more at at https://ago.vermont.gov/cap/scam-prevention-through-awareness-and-education/family-imposter-scams

Learn more at https://ago.vermont.gov/cap/scam-prevention-through-awareness-and-education/family-imposter-scams 

Read more blogs about family imposter scams.  

Report Scams:   
If you or someone you know has encountered a scam in Vermont, report it. Use CAP’s online scam reporting form.    
  
Help us stop these scams by sharing this information with those you care about.