Report: Electronic signatures are a new tool for scammers

One of the newest ways for scammers and dishonest businesses to take advantage of customers is through digital document signatures, a new report on the top 10 consumer complaints nationwide has found.

When customers sign contracts electronically — whether on a tablet, a laptop or email — they may not be given time to read the fine print and may not receive copies for their records, according to a survey of consumer complaints in 23 states by the Consumer Federation of America, a non-profit advocacy coalition.

In one case, home-security company employees went door to door, claiming false crime statistics and pressuring homeowners to purchase alarm systems.

The salespeople required consumers to sign agreements on handheld electronic devices but didn’t allow them to scroll through the terms.

In some instances, people who were elderly or disabled did not receive copies of the contracts because they did not have email addresses or computers, the report said.

Businesses also have been known to copy and paste electronic signatures from one document to another without the customer’s consent.

The Arizona Republic discovered a Peoria mold-removal company admitted in court documents that it had faked a digital signature to escape re-

sponsibility in a dispute with a homeowner.

“Using electronic devices to obtain consumers’ signatures on contracts ... may generate an increasing number of complaints in the future,” the report concluded.

If a salesperson pressures you to sign a contract immediately, say you will not sign until you’ve received a written offer and reviewed it thoroughly.

Also insist on receiving copies of the contract before the salesperson leaves.

In addition, beware of buying services from door-to-door salespeople. Instead, research companies ahead of time through the Better Business Bureau, online review sites or a state licensing agency to look for records of complaints.

Remember that you have three days to cancel between signing a contract during a sales presentation at your home and any work beginning, according to federal law.

While digital signatures are an emerging tool for fraudsters, there are more common problems that consumers face.

The Arizona Republichas investigated every category on the national Top 10 list and helped people across Arizona fight bad businesses and get money back through our #HereToHelp AZ campaign.

Do you have a consumer complaint? Contact investigative reporter Rebekah L. Sanders by email at rsan ders@azcentral.com or text “HereTo HelpAZ” to 51555.