There are warning signs to these frauds. If you hear these—or similar—"lines" from
a telephone salesperson, just say "no thank you," and hang up the telephone:
" You must act now, or the offer won't be good. "
"You've won a free gift, vacation, or prize." But you have to pay for "postage and
handling" or other charges.
"You must send money, give a credit card or bank account number, or have a check
picked up by courier." You may hear this before you have had a chance to consider
the offer carefully.
"You don't need to check out the company with anyone." The callers say you do not
need to speak to anyone, including your family, lawyer, accountant, local Better
Business Bureau, or consumer protection agency.
"You don't need any written information about the company or its references."
"You can't afford to miss this high-profit, no-risk offer."
Tips for Avoiding Telemarketing Fraud
It is very difficult to get your money back if you have been cheated over the telephone.
Before you buy anything by telephone, remember:
Do not buy from an unfamiliar company. Legitimate businesses understand that you
want more information about their company and are happy to comply.
Always ask for and wait until you receive written material about any offer or charity.
If you get brochures about costly investments, ask someone whose financial advice
you trust to review them. But, unfortunately, beware—not everything written down
is true.
Always check out unfamiliar companies with your local consumer protection agency,
Better Business Bureau, state attorney general, the National Fraud Information Center,
or other watchdog groups. Unfortunately, not all bad businesses can be identified
through these organizations.
Obtain a salesperson's name, business identity, telephone number, street address,
mailing address, and business license number before you transact business. Some
con artists give out false names, telephone numbers, addresses, and business license
numbers. Verify the accuracy of these items.
Before you give money to a charity or make an investment, find out what percentage
of the money is paid in commissions and what percentage actually goes to the charity
or investment.
Before you send money, ask yourself a simple question. "What guarantee do I really
have that this solicitor will use my money in the manner we agreed upon?"
Do not pay in advance for services. Pay services only after they are delivered.
Be wary of companies that want to send a messenger to your home to pick up money,
claiming it is part of their service to you. In reality, they are taking your money
without leaving any trace of who they are or where they can be reached.
Always take your time making a decision. Legitimate companies will not pressure
you to make a snap decision.
Do not pay for a "free prize." If a caller tells you the payment is for taxes, he
or she is violating federal law.
Before you receive your next sales pitch, decide what your limits are—the kinds
of financial information you will and will not give out on the telephone.
Be sure to talk over big investments offered by telephone salespeople with a trusted
friend, family member, or financial advisor. It is never rude to wait and think
about an offer.
Never respond to an offer you do not understand thoroughly.
Never send money or give out personal information such as credit card numbers and
expiration dates, bank account numbers, dates of birth, or social security numbers
to unfamiliar companies or unknown persons.
Be aware that your personal information is often brokered to telemarketers through
third parties.
If you have been victimized once, be wary of persons who call offering to help you
recover your losses for a fee paid in advance.
If you have information about a fraud, report it to state, local, or federal law
enforcement agencies.
The Federal Trade Commission, the nation's consumer protection agency, collects
complaints about companies, business practices, identity theft, and episodes of
violence in the media. Please visit FTC site at https://www.ftccomplaintassistant.gov/
or call them at 1-877-FTC-HELP. For more tips on how to protect yourself from various
fraud schemes, we invite you to visit our Fraudsection.
