Review the table below to learn about specific scams that DISB has received. Use this information to protect yourself when engaging in financial transactions.
The scams in this tracker are based on consumer complaints. They represent descriptions of losses incurred in transactions that have been identified as part of a fraudulent or deceptive operation. As new scams emerge, DISB will update this list on an ongoing basis to alert and protect the public. If you hear about a scam that is not listed here, or you believe that you are a victim of a scam, please let us know by submitting a complaint here.
Subject |
Complaint Narrative |
|---|---|
| Fraudulent Government Correspondence |
Some DC residents have received official-looking correspondence, allegedly from the federal government. The correspondence states that the recipient must submit business records and payment of $119 or face a fine of up to $10,000.00. The correspondence may appear as an official-looking form (possibly with form #5102 and titled Mandatory Beneficial Reporting Form). Instructions state that checks should be submitted to the “Annual Records Service.” Anyone receiving suspicious, official-looking correspondence asking for personal information and or money should contact DISB Enforcement and Consumer Protection before even thinking about responding to the correspondence. |
| Affinity Fraud | A DC pastor swindled $75,000 from three older women who were church congregation members. The members thought they were investing in the development of the new church. One would like to confidently trust someone in a position such as a pastor. However, when being asked to give money to a project such as a new church, always ask to see the plans, check for any approvals from local government, and determine if just the victim or very few others are being approached.be approached by just one or a few individuals. Remember, the consequences of falling for such scams can be financially and emotionally devastating. |
| Bank ATM Skimmers | A DC victim used her bank card at a bank and found that someone had used her card number to make purchases nearly a thousand miles away at a Sam's Club store in Illinois. The victim has never shopped at Sam’s Club. The card has always been in her possession. However, ATM skimmers are like invisible thieves, becoming increasingly sophisticated and more difficult to detect. It's crucial to be vigilant. Often skimmers do not fit over the card insertion slot perfectly. If you look closely, you can many times see gaps, or the visible receptacle is not even. Sometimes, they will be loose and will wiggle when you hold on to it. When using an ATM, be sure to check your balance for the next couple of days to ensure that your card is not being used without your knowledge. The same can be true of using a credit card in a vending machine. In those cases, check your credit card account regularly to be sure no one is using your credit card without your knowledge. |
| Advance Fee Scam | Individuals claiming to be representatives of a fictitious US Government Agency. The fictitious agency was purportedly located in the District of Columbia. The victim, a British citizen, was told to pay $12,000 in advance fees to recover their stock market losses by exchanging worthless stocks. It's important to remember that if a government agency were to reach out to advise you of money owed to you, they most certainly would not ask for money in advance. The scammers often use letterhead, names, email addresses, and websites that closely mirror legitimate government agencies. Should you be contacted and told you have money coming, do not give any personal information, and do not click on the links provided. If you are given a phone number to call to verify, don’t! Always search for the legitimate agency and their number or email. You will see the difference. Remember, verifying information is a powerful tool to protect yourself from scams. |
| Investment Scam Via Real Estate | A Maryland resident was approached by the subject, a friend of her former neighbor. The subject is a principal broker whose business is in the District of Columbia. He offered the victim an opportunity to invest in two real estate properties, which he told her he could flip for a profit. The victim’s total investment would be $50,000, which is $25,000 per property. The subject promised the victim that if she invested the $50,000 he needed to purchase the two houses, she would receive 12 monthly dividend payments of $500 totaling $6,000, and, at the end of the twelve months, she would also receive her initial investment of $50,000. Subsequently, she never received the $500 monthly payment or got her initial investment back. Always be wary of a friend introducing you to someone who wants your money. The friend may mean well, or the friend has invested and is trying to keep the “ball” rolling. Ask your friend how they know the person, ask the broker for references, and make sure you see a contract in advance and have a professional review any contract before signing. |
| Celebrity-Romance Scam |
Through an online social network, the victim met someone she thought was a celebrity. She believed she had become involved with this celebrity she had never seen live. He asked her for money for investment as he was short on cash. She sent money via Coinbase and wire transfers. She lost over $200,000. Remember, if it is too good to be true, it probably is. In this instance, the celebrity was a well-known person quite a bit younger than the victim, who could be seen on TV almost daily. The celebrity is worth millions, and none of this makes sense to most, but these scammers are excellent at identifying potential victims. Talk to family members or friends who can help steer clear from being victimized. Yet the victim believed the relationship was real. Online checking would have made it clear this was a hoax or even reaching out to the celebrity’s representatives. But sometimes, people, especially older people, can be lonely and thus vulnerable, and online skills are not the same for everyone. Another victim lost money in a romance scam. The subject solicited the victim over a dating site and referred her to an artificial investment platform. The victim lost over $157,000 from fictitious investments. Here, a simple check online or with a legitimate investment firm would have revealed the obvious. Remember, it is much easier to con someone online than in person, so always beware. |
|
Loan Re-modification Scam |
In 2020, an older DC resident reported receiving an unsolicited email from a California-based company representative. The fraudulent company claimed to offer re-modification through a “Government Backed Financial Hardship Program.” The complainant communicated with the company’s representative, who advised her to stop paying her mortgages to her lender, make all mortgage payments to the new company, and ignore all communications from her lender. The complainant lost a total of $25,000 to the scam company. ECPD assisted the complainant in reporting the scam to her lender and obtained a re-modification through the lender. The first red flag is that this was unsolicited. Yes, companies use cold calls and emails, but you need to pay close attention if it's unsolicited. Loan remodifications are always in demand, especially in challenging economic times. But if you have a mortgage, you have an obligation to whoever holds the mortgage. Never stop paying them at someone else’s direction. The mortgage holder, even if not easy to work with, can give you information about the company that contacted you. |
| Insurance Adjuster Scam | An elderly DC resident reported that her property was damaged by a fire in 2017. A former DC licensed public adjuster contacted the complainant and promised to assist in adjusting all claims against the insurance company arising from the fire loss. The complainant trusted the adjuster and gave him power of attorney to endorse all checks from the insurance company and receive a 10% fee of the total amount of money paid by the insurance company for the cost of the repairs. When the insurance company issued a check for $283,703.47, the adjuster and his business partner endorsed the check, made minimal repairs, and abandoned the property. DISB ordered the adjuster to pay the complainant’s estate restitution of $283,703.47. |
| Affinity Scam by Licensed Individual | An independent Insurance Agent/Financial Advisor/Securities Broker befriended an elderly female District resident and, over many years, developed a very close and trusted personal friendship. Initially, the Financial Advisor sold appropriate and secure securities to protect the senior’s best interest for her retirement/twilight years. Over time, the senior began to fully trust and depend on the financial advisor to assist her with routine errands to the bank, grocery store, pharmacy, and medical appointments and provided security by screening all family/neighbors' access to the senior in her home and later, rehabilitation center.
Once the senior was under the control of the Financial Advisor, he manipulated the senior to access and control the senior’s personal banking and investment accounts by changing the bank signature cards and adding himself as a beneficiary on all accounts. Later, he moved much of her money into very questionable investments for the senior. The Financial Advisor also added his family members to the senior beneficiaries and removed the senior beneficiaries without the senior's knowledge and consent. After the senior’s death, the Financial Advisor immediately attempted to collect all the decedent's assets. There were no family members locally or in regular contact with the victim, and older victims are often reluctant to talk about financial matters, especially if they think they may have made a mistake. (With the cooperation of several DC agencies, ECPD successfully investigated this case, and DISB’s Office of General Counsel successfully prosecuted the -Financial Advisor in court.) |
|
Elder Affinity |
A Federal government employee who was working in the Capitol Hill area in the District befriended an elderly female senior after providing some repairs to her multimillion-dollar townhouse in the District. The employee would visit the senior daily to make sure she was doing okay, and he would provide a friendly conversation with her. The senior used a wheelchair, had suffered a stroke, and required nursing assistance 24/7. Eventually, the Federal employee, who was married and living in Maryland with his family, convinced the senior that he was close to her and expressed an interest in securing funding for his usage. The senior interpreted the employee’s comments and gestures as a romantic relationship, which it was not. As a result, the senior provided the employee with $52,000 for a truck, money for a boat, and funds for other personal items. Again, with no close family or friends to check up or inquire, this scenario continued; in this case, the victim continuously thought the relationship was legitimate. |
| Ghost Broker Fraud |
Ghost brokers may apply for a genuine policy in your name, keep your premium payments, and then cancel the policy shortly after — all without your knowledge. This practice allows the fraudsters to deceive unsuspecting "customers" into thinking they have a legitimate policy. The victim may only find out the policy was canceled after making an insurance claim. Ghost brokers typically advertise cheap insurance on social media sites or messaging apps. According to the National Association of Insurance Commissioners (NAIC), insurance fraudsters typically tout policies that are much cheaper than competitors' policies. Reaching out to DISB can assist residents who suspect they are being duped. |