The rise of financial scams in Tennessee has prompted state officials to urgently call for increased consumer vigilance. According to a report by the Federal Trade Commission, Tennessee residents were swindled out of a staggering $133.6 million in 2023, ranking the Volunteer State 16th in the nation for fraud rates. The FTC's Consumer Sentinel Network documented over 73,000 fraud cases, including upwards of 12,700 reports of identity theft within the state last year.
The Tennessee Department of Commerce & Insurance's (TDCI) Securities Division is taking action, encouraging folks to learn the warning signs of dubious deals and how to guard their personal information. To thoroughly educate the public, TDCI Commissioner Carter Lawrence urges caution, stating “Unfortunately, unscrupulous scam artists and criminals often use our neighborliness and trusting nature against us so they can steal money and personal information. Any consumer who is approached about an investment deal that sounds too good to be true should contact our Securities team with their questions first.” as quoted in a recent announcement.
The state's securities watchdog emphasizes the crucial importance of establishing a "trusted contact" through financial advisors—someone reliable yet without authority to spontaneously transact or access accounts. This contact could play a pivotal role in confirming the account holder’s whereabouts and wellness or verifying any change in legal status. The advice comes as part of a suite of consumer tips released by the TDCI aimed at combating financial fraud.
Other protective measures include the practical disposal of sensitive documents. "Be mindful of what documents you put in your trash. Identity thieves are willing to dig through garbage to find valuable information," advised TDCI Assistant Commissioner Elizabeth Bowling. The recommendation is to invest in a quality paper shredder or to seek out community shredding events. Tips also covered are the habitual monitoring of financial statements and credit reports, the secure method of benefit check deposits, and never disclosing personal details in unsolicited calls.
The rise in financial exploitation has also highlighted the disturbing trend of scammers preying on the generous spirit of Tennesseans. In an attempt to reinforce the defenses against such incursions, local enforcement bodies and the TDCI are requesting citizens to report fraudulent activities immediately, especially if threats are involved.
