Telephone Scams & Fraudulent Practices
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Phone Scam Overview
Americans lose an estimated $40 billion a year to telemarketing fraud. And retired people, who tend to be home during the day and have money in savings, are the most frequent victims. Some have lost their retirement savings or the college funds they were accumulating for grandkids.
Telephone con artists often make calls from temporary "boiler room" setups. They win their potential victims' trust, disarm them with flattery and use myriad tactics to trick them into sending money. Often, by the time authorities catch on to the scam, the crooks have packed up and moved on. The most difficult pitches to say no to are those on behalf of worthy causes, yet research shows they are among the most common ploys used to swindle retirees.
If you get a charitable solicitation, ask how much of the money actually goes to the charity and how much for telemarketing costs. If a caller claims to represent a well-known charity, such as March of Dimes or Special Olympics, and wants to "sell" you a product or service on its behalf, check with the charity itself before you buy.
Recognize Phone Fraud
- Who's calling - and why? Telemarketers must tell you it's a sales call, the name of the seller and what they're selling before they make their pitch. If they don't, say "no thanks", and get off the phone.
- What's their hurry? Fast talkers who use high pressure tactics could be hiding something. Take your time. Most legitimate businesses will give you time and written information about an offer before asking you to commit to a purchase.
- If it’s free, why are they asking me to pay? Question charges you need to pay to redeem a prize or gift. Free is free. If you have to pay, it's a purchase - not a prize or a gift.
- Why am I "confirming" my account information - or giving it out at all? Some callers have your billing information before they call you. They’re trying to get you to say "okay" so they can claim you approved a charge.
- What time is it? The law allows telemarketers to call only between 8 am and 9 pm. A seller calling earlier or later is flouting the law.
- Do I want more calls like this one? If you don’t want a business to call you again, say so. If they call back, they’re breaking the law.
Report Phone Fraud
Recognizing fraudulent callers is important; reporting them to the appropriate law enforcement authorities is critical, too. When you report, you can help stop telephone scammers. Report telephone hucksters to the FTC and your state Attorney General so they can prosecute fraudulent telemarketers who try to steal your money.
If your number is on the National Do Not Call Registry, you should get calls only from those companies with which you do business - or those that have your permission to call. If you get calls from a company you don’t have a relationship with - or from a company you have told not to call you - report it. Jot down the name and number of the caller, and the date and time of the call.
To report phone fraud, visit FTC.gov or call 1-877-FTC-HELP.
To report violations of the National Do Not Call Registry, visit DoNotCall.gov or call 1-888-382-1222.
Your complaint is entered into the Consumer Sentinel Network, a database that is used by law enforcement agencies across the country and around the world. It can help them track down scam artists, detect patterns in their calls, find other victims, and ultimately, stop the fraud.
Register Your Number
You can limit the number of telemarketing calls you receive by placing your phone number on the National Do Not Call Registry. Once your number is registered, feel free to hang up if you get a cold call from a company with which you don't already do business - or report it!
You can register your phone number at DoNotCall.gov, or by calling 1-888-382-1222 (TTY: 1-866-290-4236) from the number you wish to register. If you register online, you must click on the confirmation email you receive to complete your free registration. Your registration will not expire. Your number is on the list until you take it off, or your number is disconnected and re-assigned to someone else.
Placing your number on the Registry stops most telemarketing calls, but not all. Once your number has been on the Registry for 31 days, you still may get calls from, or on behalf of:
Political organizations, charities, and pollsters
Companies with whom you have an existing business relationship
Companies you’ve given permission to call
Companies that you do business with may call for 18 months. If you ask a company for information, it may call for three months.
The Registry accepts personal cell phone and home phone numbers. Federal Communications Commission regulations prohibit the use of automated dialers to call cell phone numbers, so most telemarketers won’t cold-call consumers on their cell phones - despite urban myths and emails to the contrary.
Telemarketing fraud is a crime.
Professional criminals posing as legitimate telemarketers try to worm their way into your wallet. They are very good at what they do: their "pitch" is perfect, their tone is friendly and sincere, and their answers to your questions seem to make sense. It’s no wonder that consumers, regardless of their age, education or experience, can fall for telemarketing frauds.
By learning how to recognize and report telephone fraud, you can help stop some scams - and if you put your phone numbers on the National Do Not Call Registry, you can reduce the number of unwanted telemarketing calls you get.
Check www.ftc.gov/phonefraud for more information.
Here are some other things you can do to avoid the telephone scam artist's snare:
- Be wary of anyone who pressures you to make a quick decision over the phone or who refuses to take "no" for answer.
- Never give credit card numbers to anyone over the phone unless you initiated the call and know exactly with whom you're dealing.
- End a conversation immediately with anyone who asks you to pay "taxes" on a free prize. Such a request is illegal.
- Keep in mind that no legitimate authority would ever ask you to withdraw your own money from the bank for any reason.
- Ask to be put on the "do not call" list. A legitimate telemarketer should respect your wishes. New regulations require companies to maintain lists of people who've asked to be left alone.
- If you are unsure whether a phone pitch is legitimate, call the Fraud Information Center (800-876-7060) and relate your experience.
- Don't let embarrassment keep you from reporting suspicious activity and helping to prevent others from being
victimized. The more authorities know, the better able they'll be to apprehend and prosecute perpetrators.
Portions courtesy of Federal Trade Commission and BCSO
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