Helping Consumers Who Are Targeted By Telemarketing

Fraud

Telemarketing is a serious crime

• Fraudulent telemarketers are hardened criminals

• They rob with phones instead of guns

• Help people avoid becoming victims by helping them recognize the danger signs of fraud

It can happen to anyone

• Telemarketing fraud victims include police, lawyers, doctors, teachers, accountants, homemakers – there is a scam for everyone

• Con artists use same tactics as legitimate marketers – being friendly, getting people excited, creating a sense of urgency

Danger signs of fraud

• Promises easy ways to make money, borrow money, or win money

• Demands immediate action

• Refuses to send written information

• Uses scare tactics

• Wants money sent by wire or courier

Telemarketing Fraud Trends

• More than ¼ of consumers who report telemarketing fraud to the National Consumers League’s National Fraud Information Center are 60 or older – higher in certain fraud categories

• More crooks targeting U.S. consumers from Canada or other countries – makes it harder to pursue them

• Bank debits now most common method of payment

How payment is made matters

• If victims pay by check or money order, money is gone before they realize there is a problem

• Credit cards safest way to pay because consumers can dispute charges if the promises weren’t kept

• Dispute rights not same when consumers pay by debit card or give bank account number

• Money is gone by time fraud discovered!

Prize and Sweepstakes

The pitch: You won a fabulous prize, but you must pay or buy something to get it

The scam: You pay and don’t get anything, or you get a cheap trinket

Work At Home

The pitch: We’ll set you up to earn money working at home

The scam: There is no real product or service, or there aren’t any customers for the work. done for them from people’s homes

Credit Card Offers

The pitch: We’ll get you a credit card, guaranteed, even if you have bad credit, as long as you pay a fee upfront

The scam: You get nothing or a card that you can only use to buy from the company’s own overpriced catalogues

Advance Fee Loans

The pitch: We’ll get you a loan, guaranteed, even if your credit is bad

The scam: You pay but never get a loan – you just lose your money

Magazine Sales

The pitch: Subscribe for just pennies a day, or renew your current subscription

The scam: The total cost is more than you realize, or the has no relation to the publisher and simply pockets your money

Telephone Slamming

The pitch: Fill out this form to win a prize, or sign up for a great new calling plan from your phone company

The scam: You actually agreed to switch your phone service to another company without realizing it

Credit Card Loss Protection

The pitch: You need this protection because you could lose lots of money if someone steals your credit card and uses it

The scam: You are only liable for $50 and most credit card issuers will remove fraudulent charges completely if you notify them promptly

Buyers Clubs

The pitch: Get a free trial membership in a discount buying club for 30 days

The scam: You don’t realize that you must contact the company to cancel before the trial period is up to avoid charges

Nigerian Money Offers

The pitch: Help me move a fortune from Africa and I’ll give you a big slice of it

The scam: You pay “transfer” and “legal” fees to move the money to your bank account, but no money is ever deposited – money is taken out of your account instead

Office Supply Sales

The pitch: Get a great deal from your supplier before prices go up

The scam: The caller is an imposter, and if you get any supplies at all, they are inferior

Charities

The pitch: Help the disadvantaged, support your local police, aid disaster victims

The scam: The charity doesn’t exist, or most of the money goes to a professional fundraiser, not to the charity

Investments

The pitch: Triple your money with absolutely no risk if you invest right away

The scam: There may be no investment at all, or the caller may misrepresent the profits and risks

Travel and Vacations

The pitch: Get a free trip or a great vacation bargain

The scam: You have to sit through a high-pressure sales talk for a timeshare, or hidden costs make the trip much more expensive, or there is no trip at all!

Telephone Pay-Per-Call Services

The pitch: Call a 900 or 800 number for a free psychic reading

The scam: You get charged from the beginning of the call, or the free time isn’t long enough to get promised services

Consumers can protect themselves

• Resist pressure to act immediately• Ask for written information• Check unknown companies with state or

local consumer protection agency and the Better Business Bureau

• Pay the safest way – with a credit card – because they can dispute the charges if promises aren’t kept

Consumers should protect their sensitive information

• Don’t give credit card or bank account numbers unless they are buying something

• Don’t give social security numbers to telemarketers

• Personal information can be used to make charges/debits from their accounts or open new accounts in their names

Seniors are specifically targeted

• Fraudulent telemarketers know seniors are generally too polite to hang up

• Not all victims are isolated or lonely - many are active people who lured by great deals

• Con artists take advantage of fact that we all want to believe it’s our lucky day!

Seniors particularly vulnerable to certain scams

According to the National Consumer’s League’s National Fraud Information Center, people age 60 and older are specifically targeted by

• phony prizes and sweepstakes

• credit card loss protection plans and

• magazine sales scams

Signs that a senior may be in danger

• Receives lots of mail and phone calls for contests, sweepstakes, and prizes

• Makes repeated and/or large payments to unfamiliar companies

• Has difficulty paying normal bills• Has lots of cheap items that were received as

“prizes” or bought to get prizes• Receives more magazines than anyone could

possibly read

Fraud victims need help

• Don’t criticize or embarrass victims

• Reassure them that it could happen to anyone

• Encourage them to report the fraud

• Provide counseling so they won’t become repeat victims

Consumers can avoid getting on “sucker lists”

• Don’t fill out contest entry forms from unknown companies – con artists often use them to identify potential victims

• tell callers to put them on their “Do Not Call” list

• ask companies they do business with not to share their personal information with others

Steps for fraud victims

• Beware of “recovery services” – crooks that offer to get their money back, for a fee

• Use an answering machine or get Caller ID to screen calls

• Consider changing their telephone number if crooks won’t stop calling

• Change bank account number if crooks keep debiting money

• Watch out for fraudulent offers that come by mail

Consumers can help stop telemarketing fraud

• Report it quickly, even if they haven’t lost any money

• Call the National Fraud Information Center toll-free, (800) 876-7060, or go to www.fraud.org

• Information helps shut down fraudulent operators and protect others