The Home Security Scam This scam involves replacing or installing a new home security system. The majority of the salespeople are not licensed to sell door to door. There are three phases to the contract: installation, monitoring and sales, and each person receives a part of the commission. During the sales pitch the consumer is not made aware of this and canceling the contract becomes a nightmare. The consumer is transferred several times during the process and typically will hang up out of frustration or is unsure whom they should talk to about canceling the agreement. More times than not, the time limit to cancel has expired and the consumer has to pay the monthly payments for the system. Below are some additional tips to follow: Ask to see the contractor’s license- the number, the state where they are registered and the name under which the licensed is filed. Verify this information before going further. Ask the salesperson for references from previous customers, and contact the customers to find out about the equipment and service. Make sure everything you have agreed to is written into the contract and you have checked the fine print for commitments you might be signing up for, such as monitoring fees. The best defense to this scam: Do not answer the door. If you have questions or suspect fraud, call 1-877-MY-FL-CFO (1-877-693-5236).