Fraud and Scam Awareness: Telemarketing
Many organizations rely on telemarketing in order to offer honest services and products.
Telemarketing is also a necessary tool for many deserving charities. However, telemarketing
scam operations seem to be on the rise. The yearly cost of telemarketing scams is in the
billions of dollars. Usually, according to FBI investigations, these operations specifically
target older Americans.
It has been estimated that there are about 10,000 fraudulent telemarketing operations,
which target hundreds of thousands of Americans every day. The Department of Justice
estimates that one in six consumers are cheated by telephone scams every year. Fraudulent
telemarketers often share "mooch" lists—lists of ideal targets—because victims can be
successfully targeted again and again. Some dishonest telemarketing operations are
sophisticated enough to "prescreen" or gather background information on their intended
targets. Victims may include highly intelligent people with above-average incomes and
plenty of business know-how.
Types of telemarketing frauds
These thieves use various ways to cheat people—mostly detailed under other topics in this
guide. Scams include the following: phony prizes, shady land deals, sweepstakes and raffle
entries, sham investments, false products, free "security" evaluations, credit repair plans,
and false charities. Perhaps the most vile of these scams are "recovery" operations.
"Recovery" scams are where victims are targeted again by telemarketers with the promise
that, for a fee, a supposed agency will help the victim recover the stolen money.
Telemarketers even pose as legal authorities or financial representatives who are calling
to "help catch the bad guys." A growing number of people—particularly older, or the
socially isolated—lose their life savings to fraudulent telemarketers.
Recent federal rulings require that telemarketers provide consumers with disclosure information. Certain types of phone solicitations have also been restricted. There are efforts to more forcibly prosecute scam callers who operate across state or federal borders. The single best way to shut down these scams is for people to always report being victims of such crimes. Many victims are too embarrassed to report having fallen prey to these operations. Here are some tips to help you avoid telemarketing fraud:
- Ask to receive more information by mail
- Avoid sending checks to post office boxes or overseas addresses
- Be assertive about your concerns or doubts
- Consider any purchase, donation, agreement, or obligation very seriously before you
commit
- Contact the Better Business Bureau before you deal with a business whom you do not
know
- If someone claims to represent a charity (even the Sheriff’s Ball), call them back
and make a contribution over their listed number
- If you use a credit card, watch your account’s charges
- Never let yourself be rushed, threatened or pressured to accept a caller’s sales
pitch
- Never provide information to complete a credit application unless you originate the
call
- Never provide information on your checking accounts unless you are sure of
whom you’re dealing with
- Verify phone solicitors by calling them back at the
number they list in the phone book