Question: What resources are available to assist people and businesses in learning how to avoid scams and understand their consumer rights? 

Answer: The Department of Commerce and Consumer Affairs has an enormous amount of information available for Hawaii consumers. Consumers and businesses should initially consult the websites of the DCCA (cca.hawaii.gov), the Federal Trade Commission (ftc.gov) and the Consumer Financial Protection Bureau (consumerfinance.gov), where virtually every type of scenario is covered. Consumers who do not have access to a computer may contact DCCA’s consumer information line at 587-3222, which is an automated system providing information related to commonly requested consumer topics. 

Q: What are the most common scams in Hawaii and what are the usual red flags? 

A: Hawaii is no different from the mainland. We see the same scams here as in the rest of the country. The Office of Consumer Protection often hears about scams involving foreclosure rescue operations, sweepstakes and lotteries, Internet sales fraud, illegal billing for goods or services, and ID theft.

The biggest red flag is when an unfamiliar person or company asks you to pay upfront or to wire money. For instance, in Hawaii, unless you’re an attorney, it’s illegal for someone to demand upfront payment from you to help with your foreclosure. 

Another huge red flag is when someone asks you to wire money to redeem winnings for a sweepstakes or lottery. Don’t fall for this scam. If you send payment via a wire transfer, you will inevitably lose all of your money.

Unfortunately, over the past several years we still find people being scammed on sites such as Craigslist, involving offers relating to the purchase of motor vehicles or the rental of housing. People frequently get burned if they fall for a too-good-to-be-true deal. If you see a listing for a beautiful house on the beach for $1,000 a month, it’s most probably a scam. The rule of thumb with these transactions is to only deal locally and face to face and don’t send money to someone unless you know who they are. 

Q: What about ID theft in Hawaii? Is this still a big problem? 

A: ID theft is something that everyone is vulnerable to in today’s society. Every week, OCP receives notifications from companies that report security breaches. If you are notified, immediately check your credit report and credit card statements for unusual activity. You can review your credit report for free by going online to annualcreditreport.com. 

The best way to guard against ID theft is to be very careful when you give out your personal information. Never provide it to someone who telephones or emails you out of the blue. Just because someone claims that they are from your bank or from a government agency doesn’t mean that they are. 

Q: What kinds of losses do these different scams exact on individuals and the state? 

A: People lose thousands of dollars all of the time. A few years ago I spoke to one local family that lost more than $300,000. If money is wired, it’s probably gone to a place located in a foreign country where the scammer has hidden his or her identity. It’s an unfortunate fact that law enforcement probably won’t be able to get it back for you. 

Q: How can customers vet businesses before giving them money? 

A: The DCCA has an excellent website (businesscheck.hawaii.gov) containing the complaint history on businesses doing business in Hawaii. While an isolated complaint may not be indicative of a problem, if a business has a record of numerous complaints lodged against it by different people, a consumer might want to do additional research before dealing with that company. 

Q: What’s the best way to pay for goods or services if you want to protect yourself from scammers? 

A: It’s always best to pay with a credit card since if a transaction turns out to be fraudulent or if a product is defective, a consumer will have an easier time recovering his or her funds through their credit card company. Federal law protects consumers in situations such as these. 

Q: What can consumers do if they think that they have been victimized by unfair or deceptive business practices? 

A: Anyone believing that they have been victimized should file a complaint with OCP. We are here to serve and to protect the people of Hawaii from illegal business practices. Complaint forms are available at the department’s website at cca.hawaii.gov or by calling 587-4272.