Dear Readers,

In light of the recovering economy, and the serious downturn that preceded it, the D.C. 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 business owners succumb to identity theft, investment schemes, insurance fraud, 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. Mayor Adrian M. Fenty showed the city’s ongoing commitment by declaring August 23 to 29, 2009, as the District’s Financial Fraud Awareness Week.

DISB uses this special week during summer to focus on financial scams that seduce business consumers with promises of winning easy money or investments, and deceiving them into giving scammers their personal information or money. This year, the agency will host 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 a pricey and inconvenient crime. It 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 The Capital Connection newsletter focuses on identifying and combating fraud. Find out about preventing automobile theft and the fraud warning language insurers are required to use on applications for insurance and claim forms. Further, read about DISB’s participation in the NMLS, its co-sponsorship of a business plan competition, the differences between federal and state insurance regulation, the agency’s newly created consumer protection and advocacy task force, and a 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