The Consumer Protection Unit identified the Top 10 Scams Delawareans reported in 2023.
If you are a victim of a scam, please fill out a consumer complaint form at de.gov/consumercomplaint or by phone at (800) 220-5424.
Scammers use sophisticated tactics to defraud members of our community, including the most vulnerable among us. But quite frankly, anyone can become a victim of scam. Our Consumer Protection Unit has provided tips and advice for consumers on how to reduce the risk of being scammed. We strongly encourage consumers to visit the Federal Trade Commission’s website and/or the Better Business Bureau of Delaware’s website to learn about different scams and how to report them.
Home improvement contractors who promise to do the work on your home but end up leaving you and your home worse off than when it started. For example, starting a project and not finishing, damaging your home, overcharging you, or simply just taking your money and not doing any work. (FTC Definition)
People spend billions of dollars a year on products and treatments in the hope of improving their health and fitness. A lot of that money goes to companies that make fake claims about those products and treatments, cheating people out of their money, time and even their health. (FTC Definition)
Common scams that lure you in with promises of making a lot of money quickly, easily, and with low risk – usually by investing in the financial or real estate markets. (FTC Definition)
Identity thieves use a victim’s personal information (e.g., Social Security number, bank account information, and credit card numbers) to pose as that individual for their own gain. Using the target’s identity, the thief may open a credit account, drain an existing account, file tax returns, or obtain medical coverage.
Here are some tips:
Guard your financial information.
Never give out your social security number, credit card numbers, bank account numbers, or any other personal or financial information to anyone you don’t know. And guard all your receipts–especially if they reflect your financial account numbers.
Deal only with reputable vendors.
Avoid dealing with businesses you don’t know, especially when their offers come to you by e-mail or through telephone calls from people you don’t know. No matter how good the deal may sound, walk away. Identity thieves often pitch great deals to make sure they can lure their victims in quickly.
Shred old documents containing secure personal and financial information.
Regularly update passwords to strengthen security and minimize the risk of foul play.
Check your credit report often.
Evidence of identity theft often shows up before the victim even realizes what has happened. Criminals often attempt to get credit under other people’s names or social security numbers, and these attempts will show up on credit bureau reports.
Get up to 6 free credit reports each year until 2026 by visiting www.annualcreditreport.com, by phone at 877-322-8228, or mail your request to Annual Credit report Request Service, P.O. Box 10521, Atlanta, GA 30348-5281.
Trust your instincts.
If you feel uncomfortable about doing business with someone or feel pressured to give up your confidential information, walk away. It is much better to take the time to think through an offer and to do more research than it is to hand over your confidential personal or financial information to a criminal. Legitimate businesses want your repeat business, and will gladly give you time to do your homework first.
What to do if You Suspect Identity Theft
If you are a victim of Identity Theft, the Attorney General recommends that you immediately take the following steps:
Step 1: Contact the police.
The first step you need to take is to report the fraud to your local police department. This step is important for two reasons: First, it immediately alerts local law enforcement to the crime. Second, it establishes that you acted diligently, and enables you to get a police report, complaint number or other similar record, which you may need when contacting some of your creditors. If you are not sure which law enforcement agency to contact, please call the Attorney General’s Consumer Protection Unit at (800) 220-5424. The Consumer Protection Unit can help you get in touch with the proper police agency and can answer any other Identity Theft questions you may have.
Step 2: Promptly report the fraud to the three major credit bureaus.
Because identity thieves often attempt to obtain credit under your identity, it is important to promptly contact the three major credit bureaus to report the fraud. Ask each credit bureau to take a report, and to place a “fraud alert” on your credit report.
Also, ask each credit bureau to send you a copy of your credit report, so you can determine the extent of any unlawful credit activity that may have taken place using your identity. If you already have a police report, file number, or complaint number from your local law enforcement agency, you should give that information to the three major credit bureaus as well, to help them investigate any disputed accounts or other reports of fraud.
Step 3: Consider placing a security freeze on your credit report to prevent unauthorized release.
Step 4: Contact the Fraud Department of each of your creditors and banks.
Locate all your credit cards, your banks and other creditor information (such as utilities, cable, etc.) and contact their “fraud” departments. Report the fraud to each creditor, even if your account with that creditor has not been directly affected by the identity theft, to ensure each creditor is aware of the potential of a crime taking place. Ask each creditor to place a “fraud alert” on your account. If there are charges on your accounts that are illegal, most creditors will also ask you to submit a written report of the fraud, along with a police report, or a police complaint number or file number. If you need help with any of these steps, you may contact the Attorney General’s Consumer Protection Unit at (800) 220-5424 to request the Attorney General’s Identify Theft Victim Kit. This kit contains everything you need to promptly report identity theft, and also includes an Identity Theft Affidavit which you may use to submit your theft reports to your creditors.
Step 5: Report the fraud to the Federal Trade Commission.
The Federal Trade Commission (“FTC”) maintains a confidential, national Identity Theft database, and may also be able to assist in pursuing identity thieves through federal channels. The FTC may be reached at (877) IDTHEFT (877-438-4338)
Our Consumer Protection Unit hosted a discussion on identity theft with DOJ Chief Special Investigator Alan Rachko, FBI Agent Benjamin Lindemann, and Assistant U.S. Attorney for the U.S. DOJ Christopher Howland. This chat was moderated by Marion Quirk.
These cons often involve purchases and sales, often on eBay, Craigslist, or other direct seller-to buyer sites. Scammers may pretend to purchase an item only to send a bogus check and ask for a refund of the “accidental” overpayment. In other cases, if the scammer is the seller, they never deliver the goods.
Here are some tips:
If you are buying off direct seller-to-buyer sites, remember:
Don’t email any financial information.
If you begin a transaction and need to give your financial information through an organization’s website, look for indicators that the site is secure, like a URL that begins https (the “s” stands for secure).
Check the privacy policy.
It should let you know what personal information the website operators are collecting, why, and how they’re going to use the information.
Beware that even if you are able to cash a check or see funds recorded in your account statement, it may still be a fake.
If a buyer or seller tries to persuade you to go outside the site’s usual process or payment methods, that’s a big red flag 🚩.
Our Consumer Protection hosted a discussion on online shopping scams with DOJ Special Investigator LaVincent Harris, and Better Business Bureau Director of Business Jon Bell. This chat was moderated by Gina Schoenberg.
Imposter scams come in many varieties but work the same way: a scammer pretends to be someone you trust to convince you to send them money. Scammers can pretend to be anyone, such as the Internal Revenue Service (IRS), Tech Support, the Social Security Administration, or even a family member.
Here are some tips:
Our Consumer Protection Unit hosted a discussion on imposter scams with DOJ Deputy Director of Consumer Protection Ryan Costa, Better Business Bureau Director of Business Jon Bell, Social Security Administration Public Affairs Specialist Matt Baxter, and AARP Delaware Communications Director Kimberly Wharton. This discussion was moderated by Marion Quirk.
These complaints can include selling cars that have undisclosed problems or selling extended warranties but refusing to cover expenses. Additionally, car dealerships may put tempting deals in their advertisements, but when you try to close the deal, the deal is not what it looks like.
Here are some tips:
Get the vehicle’s history.
➡️ Visit the National Motor Vehicle Title Information System (NMVTIS) website at vehiclehistory.gov to get a vehicle history report with the title, insurance loss, and salvage information.
Get an independent vehicle inspection
to ensure it doesn’t have hidden damage.
Ask for the car’s maintenance record from the owner, dealer, or repair shop.
Check whether there are any unrepaired recalls on the vehicle.
You can check yourself by entering the VIN at safercar.gov, or by calling the National Highway Traffic Safety Administration (NHTSA) Vehicle Safety Hotline at 1-888-327-4236.
If you get mail or phone calls about renewing your vehicle warranty, don’t take the information at face value.
Be alert to telemarketers pitching auto warranties using high-pressure tactics to hide their true motives. Most legitimate businesses will give you time and written information about an offer before asking you to commit to a purchase.
Be skeptical of any unsolicited sales calls and recorded messages.
If your phone number is on the National Do Not Call Registry, you shouldn’t get live or recorded sales pitches unless you have specifically agreed to accept such calls.
Report violations or register a phone number to the National Do Not Call Registry at DoNotCall.gov or call 1-888-383-1222.
Our Consumer Protection Unit hosted a discussion on auto-related scams with DOJ Deputy Attorney General George Lees, DOJ CPU Special Investigator LaVincent Harris, and Division of Motor Vehicles Cheif of Compliance and Investigations Karen Carson. This chat was moderated by DOJ Paralegal Diana Anderson.
Most sweepstakes scams have a few things in common. They claim that the recipient has won, or is about to win, a large cash prize. And they try to get the recipient to pay money, often supposedly to claim the bogus prize.
Here are some tips:
Signs of prize scams:
➡️ You have to pay.
➡️ You have to wire money.
➡️ You have to deposit a check they have sent to you.
➡️ You are told they are from the government.
➡️ Your “notice” was mailed by bulk rate.
➡️ You get a call out of the blue.
Signs of a lottery scam:
➡️ You did not enter a lottery, but you receive a notice or call from a person claiming to work for the Delaware Lottery.
➡️ You receive a notice or call informing you that you have won a lottery in another country.
➡️ You receive a notice or call informing you that you have won a sweepstake, but you need to pay a fee in order to claim your winnings.
➡️ You receive a notice or call from a person claiming to work with the federal government or a “Federal Sweepstakes Board.”
Our Consumer Protection Unit hosted a discussion on prizes, sweepstakes, and lottery scams with DOJ Chief Special Investigator Alan Rachko, and AARP Delaware Communications Director Kimberly Wharton. This chat was moderated by Gina Schoenberg.
These scams use Internet services or software with Internet access to defraud victims or to otherwise take advantage of them. Internet crime schemes steal millions of dollars each year from victims and continue to plague the Internet through various methods.
These scams target consumers regarding mobile plans, rates or coverage areas, problems with mobile applications or downloads, unauthorized switching of consumers’ phone service provider, misleading pre-paid phone card offers, VoIP service problems, electronic consumer products such as smart watches, and connected-home devices that can connect to the internet and use a processor or sensors to collect consumer information.
These are very common scams that target small businesses and non-profit organizations, Scammers’ tactics include promises of a job, guaranteed money, and often says you can work from home.
Listings are posted for properties that are not for rent, do not exist, or are significantly different from what’s pictured. In another variation, scammers claim to specialize in timeshare resales and promise they have buyers ready to purchase.
Here are some tips:
“Free” vacations.
A legitimate company won’t ask you to pay for a prize. Any company trying to sell you a “free” vacation will probably want something from you. Be cautious.
Timeshare reselling cons.
Be careful about scammers contacting you claiming to be a real estate broker or agent stating to specialize in timeshare resales and promising they have buyers ready to purchase. They pressure owners into paying an upfront fee and once they do, the reselling agent never delivers.
Vacation rentals cons.
Watch out for scammers who post listings for properties that either aren’t for rent, don’t exist, or are significantly different than pictured. These con artists then lure in vacationers with the promise of low fees and great amenities.
Mandatory hotel fees.
Hotels listing the “resort fee” near the quoted price or in the fine print – or referring to other fees that “may apply” – isn’t good enough. If you find out a hotel hasn’t told you the whole story about mandatory fees, in addition to complaing to the company, file a complaint with the FTC.
Our Consumer Protection Unit hosted a discussion on travel, vacation, and timeshare scams with DOJ Director of Consumer Protection Marion Quirk, and DOJ Deputy Attorney General Jordan Braunsberg. This chat was moderated by Luke Meyer.
These scams and complaints arise from companies wrongfully using consumer data or private information, or not correctly storing consumer data.
Our Consumer Protection Unit hosted a discussion on privacy, data, and cyber threat scams with DOJ Director of Consumer Protection, and FTC Regional Director Jon Steiger. This chat was moderated by Luke Meyer.
Safeguard your information by shredding personal documents (bank statements).
Be alert to impersonation schemes.
Set up alerts on your accounts so you are notified of suspicious charges.
Look at your bank statements and credit card statements for unauthorized charges.
Check your credit report annually for any fraudulent activity.
What do the fraudsters commonly do with your personal information once stolen?
Open credit cards in your name.
Take out loans in your name.
Sign up for unemployment benefits in your name.
Sign up for social security benefits in your name.
How do you know if your identity is stolen?
You receive notice in the mail from a collection agency, credit card company, or other business (all of which you do not have accounts with) stating that you owe them for a past due bill.
You receive an email/text alert advising you of fraudulent credit card charges.
When checking your bank statement or credit card statements, you discover fraudulent charges on your account.
Online Shopping Scams
How do trends and patterns of complaints get analyzed to determine how to escalate and prioritize action?
We have several tools at our disposal to track and analyze trends. We review the statistics generated by those tools on a regular basis and work closely with our federal partners and other state Attorneys General.
How can we submit an inquiry for investigation to the Attorney General’s Office?
If you have any trouble, give us a call: (800) 220-5424
Is there an alert system in Delaware to let consumers know that an online scam has been discovered?
We routinely issue press releases on the latest scams and scam variations. We will also come speak to groups you are associated with about fraud and scams. These outreach events are free of charge and can be offered virtually (only virtual at this time).
What can I do to protect myself? Best tips?
Do your homework.
If the offer is too good to be true, it is likely a scam.
If you are victimized, report it.
Imposter Scams
What are your best consumer tips regarding imposter scams?
Be suspicious about all links, phone calls, and mailings.
Trust your gut. When in doubt, do not act.
Government entities like the IRS, Social Security Administration, and Medicare will never threaten to arrest you, fine you, or cancel your benefits. Any suggestions that they will is a major red flag.
Always conduct independent verification
Do not use the communication for contact information. Go to an independent source to get contact information. For example, if you receive correspondence from your bank, contact them utilizing the information on your most recent statement or on the bank of your card.
Remember: anyone can make whatever they want appear on your caller ID. You cannot trust your caller ID.
Watch for these red flags
Communications about transactions you do not recall making
Calls to quick action
Requests or demands for money, especially wire transfers and the purchase of gift card or pre-paid cards
Threats of arrest or physical harm
IF IT IS TOO GOOD TO BE TRUE IT IS LIKELY A SCAM.
What should you expect if you file a complaint with the Consumer Protection Unit?
If no loss, we will track the information you provide in our internal and national databases to identify trends, target outreach, and make federal enforcement referrals where appropriate.
If you did experience financial loss, a Special Investigator will reach out to you. If you receive a communication from our office and you are not sure it is real, call us at (302) 683-8800 to verify that the contact is legitimate.
If you file a complaint about a robocall or other phone call, make sure you collect the following information and submit your complaint immediately:
The phone number as it appears on your caller ID
The name, if any, as it appears on the caller ID
The exact time of day that you received the call
Auto Related Scams
How can I protect myself against car repair fraud?
Find a reputable mechanic by asking friends and colleagues for recommendations and checking the BBB for complaints.
You can also utilize AAA; they vet and endorse repair shops, and can help mediate disputes between members and approved shops.
If your check engine light comes on, you can take it to the parts store, and they can run a diagnostic to tell you why the light came on so you can approach your mechanic prepared.
How do I report a complaint to the Better Business Bureau?
The BBB is a great first step when an issue arises; not only can they help consumers address problems they might have with businesses, but they also publish complaints they receive, which can help other consumers, too.
Prizes, Sweepstakes, and Lottery Scams
What are the red flags that I might be dealing with a scam?
You get a notice that you won but you never played.
You are told that you must pay upfront fees and taxes before they can award your prize.
Claims that you have won “unclaimed” winnings.
What should I do if I have been victimized?
File a complaint with our office and the FTC.
Any other tips?
Take advantage of services through your phone provider to block spoofed or manufactured phone numbers.
Remember: anyone can pay for a mailing or an internet ad. Having these things does not make an entity legitimate.
Before you act, call a family member, friend, or us. Talk to someone about what is going on.
Consumer Credit Scams
What can we expect to see in 2021 in terms of consumer credit scams?
Unfortunately, we expect to see folks really struggling with credit—we’re expecting to see an uptick in scams relating to consumer credit as a result.
Where can viewers make a complaint if they are concerned about an unfair mark on their credit report or a debt relief company?
Start with the company itself. Reputable organizations care about correcting their mistakes and keeping their customers happy.
Report it to CPU! We need patterns to act most efficiently.
Is there anything businesses should be aware of in terms of phishing?
Most people think phishing could only happen to individuals, but businesses are just as much at risk to phishing scams as individual consumers are.
There is an entire subcategory called the Business Email Compromise, which can be extremely sophisticated.
Just as you are in your personal life, when you’re at work or you own a business, be on the lookout for phishing emails. Train your employees on phishing scams and how to spot them.
How can you spot a tech support scam?
If you ever receive a text or call from a number that claims to be a company such as Apple or Microsoft, you should immediately think of it as a scam. Legitimate companies will not be contacting you about a potential tech issue.
As super red flag is when someone asks you to pay them using a means that is not typical money, such as Bitcoin or Gift cards.
Travel, Vacation, and Timeshare Scams
What should you do before signing up for a timeshare?
Similar to vacation rentals, do your research! Make sure that the company that is selling the timeshares is legit. If it is a Marriot timeshare, make sure it is actual Marriot selling the timeshare.
Additionally, ensure that the paperwork matches what the promotional information says. Be sure you know what the contract that you’re signing says, regardless of what the salesperson told you.
Never send money/pay for a timeshare before you’ve signed the contract. There is no need to pay money before you sign.
What if you’ve put in for a vacation contest and you’re told you have won, but you’re not sure if it is actually true?
Three avenues:
Cross-reference the contact information for the vacation contest and the contact information of the person who contacted you to let you know you’ve won. If they’re different, that’s a red flag. And reach out to the company that the contest is with.
If there are hotels or resorts involved, independently contact that hotel/resort to make sure the contest is legit.
If there is travel involved (airplane, train, rental car, etc.) independently contact that hotel/resort to make sure the contest is legit.
How can you research a rental company?
Check with the Better Business Bureau to see if the company has gotten any complaints in the past
Check the company’s social media pages to see how they represent themselves.
Check reviews online! If someone had a bad experience, they’re likely to post about it online.
What can you do if you think you’ve been a victim of a rental scam?
Three steps:
Reach out to your banks/financial institutions. Make sure they are aware that you have been a victim of a scam. This should, hopefully, stop future problems.
Gather information about the scam
Make a decision if you are going to follow up with law enforcement. You can file a police report, file a complaint with the BBB or the FTC, or file a complaint with our office.
What information is helpful to report rental scams?
Contact information (phone number, email, name of contact, or company).
Screenshots of your communications (emails, texts, documents you signed).
Timeline of the scam – when you were first contacted to when you realized it was a scam.
