July 1, 2015 – While America is worried about bomb-throwing terrorists and illegal aliens sneaking across our borders, scammers are quietly defrauding homeowners and consumers of hundreds of millions, at least, perhaps billions of dollars by selling fake or shoddy services and worthless products.

That’s why a consortium of city, state, and federal consumer-fraud experts met last week at Columbia College in the Loop to hold a news briefing on how to spot and avoid scams in Chicago.

“We are awash in a sea of fraud,” warned C. Steven Baker (left), director of the Federal Trade Commission’s Chicago-based Midwest Region. “People are losing billions of dollars. 11 percent of the adult population of the United States has been ripped off in the past 12 months.”

The rip-offs span a multitude of areas from home repair and health care to debt collection, jobs, education, and immigration. What’s worse, consumers are often too scared to report fraud when they have been victimized. Blacks and Hispanics are the most likely target for a rip-off, Baker said.

According to the FTC, professional scammers – well-trained pitch persons who know how to get your money – are currently practicing the following favorite rip-offs…

The Illinois Attorney General’s office received a whopping 21,791 written complaints about consumer rip-offs in 2014, including many scams involving mortgages, consumer debt, and identity theft, said Cecilia Abundis, Assistant Attorney General of Illinois.

Regarding computer data breaches, Steve Bernas, president and CEO of Better Business Bureau (BBB) of Chicago and Northern Illinois, advised consumers to “be vigilant about checking bank account balances online, and obtaining your credit report at least once each year.”

Maria Guerra Lapacek, Commissioner of the Chicago Department of Business Affairs and Consumer Protection (BACP), cautioned consumers about home-repair scams that prey on residents who have suffered water damage to their homes as a result of recent severe spring and summer weather.

“Scammers often descend on flood-stricken neighborhoods, going door-to-door to offer clean-up services or home-repair services, and promise to do the work quickly,” said Lapacek (right).

They pressure people – especially elderly homeowners – when they are most vulnerable into making decisions on the spot, she said. “They tend to use cheap, inferior materials, if they do any work at all. When things fall apart or they do not complete the work, they are gone.”

The BACP gives the following tips to help homeowners from being scammed…

• Be wary of door-to-door solicitors. Legitimate home-repair contractors generally do not seek customers in this manner.
• Confirm that the contractor is licensed and verify the company holds a valid insurance certificate with up to $300,000 in coverage. For license information, visit the city’s website at cityofchicago.org/bacp.
• Check the contractor’s business references or seek referrals from friends and neighbors. Is the company rated by the BBB?
• Get written estimates. If you sign a contract, remember you have three days to cancel it. The contractor should provide a Notice of Cancellation form. Do not pay for a job in advance and do not pay in cash.
• If you think you’ve been ripped off, call 311 to file a complaint with the BACP.