Dear Readers,

In light of the recovering economy, and the serious downturn that preceded it, the DC Department of Insurance, Securities and Banking (DISB) has seen a marked increase in the numbers of fraud complaints coming into the agency in FY 2009. Financial fraud has taken an extremely dire turn as more people are taken in by mortgage fraud schemes, investment schemes, identity theft, Ponzi schemes, and the like.

So, for the last five years, the agency had set aside a week to focus on fighting financial fraud in the District of Columbia. August 23 to August 29 has been set aside as the District’s Financial Fraud Awareness Week.

DISB uses this special week during the summer to focus on financial scams that seduce consumers with promises of saving their homes from foreclosures, winning easy money or great prizes, and deceiving consumers into giving scammers their personal information or money. This year, the agency will be hosting an investment fraud seminar for seniors at the Washington Seniors Wellness Center, 3001 Alabama Avenue, SE, on August 26, from 11:30 am to 1 pm. All are welcome.

The key messages for DISB’s Financial Fraud Awareness Week 2009 are: 

• Scams target you. Protect yourself.
• Don’t be seduced. Don’t be deceived.
• Fight the scammers! Don’t respond!
• If it looks too good to be true, it probably is.
• DISB is your source for information and protection.
   

Financial fraud is one of the most expensive and inconvenient crimes in society. Fraud causes people to lose time, money and confidence in the financial system. DISB has made several efforts to combat fraud on all fronts—through education, as well as enforcement and investigation of fraudulent scams. However, the recent sentencing of Bernard Madoff to 150 years in prison for engineering a massive Ponzi scheme that lost billions for investors, shows that crime really does not pay, to quote a cliché.

This month’s DISPATCH newsletter focuses on identifying and combating fraud. Find out more about protecting yourself from mortgage scammers, preventing automobile theft and the work DISB is doing to deal with consumer complaints and to prevent fraud against District residents. Further, read about DISB’s newly created consumer protection and advocacy task force, new renters rights in foreclosures, about credit unions, and the differences between federal and state insurance regulation and a whole lot more. As always, we hope our newsletters continue to provide you with useful information to protect you from unscrupulous and fraudulent practices.

Happy Reading!
Office of Communications