Are You A Target Of...Telemarketing Scams?
If you're age 60 or older, you may be a special target for people
who sell bogus products and services by phone.
It's easy enough to fall prey to their sales pitch. Telemarketing fraud is a
multi-billion dollar business in the United States. Every year, thousands of consumers
lose from a few dollars to their life savings to telephone con artists.
That's why the Federal Trade Commission (FTC) encourages you to be skeptical when you
hear a phone solicitation and to be aware of the Telemarketing Sales Rule, a new law that
can help you protect yourself from abusive and deceptive telemarketers.
How Older People Become Victims of
Telemarketing Fraud
Fraudulent telemarketers try to take advantage of older people on the theory that they may
be more trusting and polite toward strangers. Older women living alone are special targets
of these scam artists.
Here are some reasons older people become victims of telemarketing fraud:
- Often it's hard to know whether a sales call is legitimate. Telephone con artists are
skilled at sounding believable—even when they're really telling lies.
- Sometimes telephone con artists reach you when you're feeling lonely. They may call day
after day—until you think a friend, not a stranger, is trying to sell you something.
- Some telephone salespeople have an answer for everything. You may find it hard to get
them off the phone — even if theyre selling something you're not interested in. You don't
want to be rude.
- You may be promised free gifts, prizes, or vacations—or the "investment of a
lifetime"— but only if you act "right away." It may sound like a really
good deal. In fact, telephone con artists are only after your money. Don't give it to
them.
Common Telephone Scams
Con artists never run out of scams. Have you heard any of these?
- Prize offers: You usually have to do something to get your "free"
prize—attend a sales presentation, buy something, or give out a credit card number. The
prizes generally are worthless or overpriced.
- Travel packages: "Free" or "low-cost" vacations can end up
costing a bundle in hidden costs. Or, they may never happen. You may pay a high price for
some part of the package — like hotel or airfare. The total cost may run two to three
times more than what youd expect to pay or what you were led to believe.
- Vitamins and other health products: The sales pitch also may include a prize
offer. This is to entice you to pay hundreds of dollars for products that are worth very
little.
- Investments: People lose millions of dollars to "get rich quick"
schemes that promise high returns with little or no risk. These can include gemstones,
rare coins, oil and gas leases, precious metals, art, and other "investment
opportunities." As a rule, these are worthless.
- Charities: Con artists often label phony charities with names that sound like
better-known, reputable organizations. They won't send you written information or wait for
you to check them out with watchdog groups.
- Recovery scams: If you buy into any of the above scams, you're likely to be
called again by someone promising to get your money back. Be careful not to lose more
money in this common practice. Even law enforcement officials can't guarantee they'll
recover your money.
Tip-Offs to Phone Fraud
Telephone con artists spend a lot of time polishing their "lines" to get
you to buy. You may hear this:
- You must act "now"—or the offer won't be good.
- You've won a "free" gift, vacation, or prize—but you 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—before you've had a chance to consider the offer carefully.
- You don't need to check out the company with anyone—including your family, lawyer,
accountant, local Better Business Bureau, or consumer protection agency.
- You don't need any written information about their company or their references.
- You can't afford to miss this "high-profit, no-risk" offer.
If you hear these—or similar—"lines" from a telephone salesperson, just say
"no thank you," and hang up the phone.
The Telemarketing Sales Rule
The FTC's Telemarketing Sales Rule requires telemarketers to make certain
disclosures and prohibits certain misrepresentations. It gives you the power to stop
unwanted telemarketing calls and gives state law enforcement officers the authority to
prosecute fraudulent telemarketers who operate across state lines.
The Rule covers most types of telemarketing calls to consumers, including calls to
pitch goods, services, "sweepstakes," and prize promotion and investment
opportunities. It also applies to calls consumers make in response to postcards or other
materials received in the mail.
Keep this information near your telephone. It can help you determine if you're talking
with a scam artist or a legitimate telemarketer.
- It's illegal for a telemarketer to call you if you've asked not to be called. If they
call back, hang up and report them to your state Attorney General.
- Calling times are restricted to the hours between 8 a.m. and 9 p.m.
- Telemarketers must tell you its a sales call and who's doing the selling before they
make their pitch. If it's a prize promotion, they must tell you that no purchase or
payment is necessary to enter or win. If you're asked to pay for a prize, hang up. Free is
free.
- It's illegal for telemarketers to misrepresent any information, including facts about
their goods or services, earnings potential, profitability, risk or liquidity of an
investment, or the nature of a prize in a prize-promotion scheme.
- Telemarketers must tell you the total cost of the products or services they're offering
and any restrictions on getting or using them, or that a sale is final or non-refundable,
before you pay. In a prize promotion, they must tell you the odds of winning, that no
purchase or payment is necessary to win, and any restrictions or conditions of receiving
the prize.
- It's illegal for a telemarketer to withdraw money from your checking account without
your expressed, verifiable authorization.
- Telemarketers cannot lie to get you to pay, no matter what method of payment you use.
- You do not have to pay for credit repair, recovery room, or advance-fee loan/credit
services until these services have been delivered. (Credit repair companies claim that,
for a fee, they can change or erase accurate negative information from your credit report.
Only time can erase such information. Recovery room operators contact people who have lost
money to a previous telemarketing scam and promise that, for a fee or donation to a
specified charity, they will recover your lost money, or the product or prize never
received from a telemarketer. Advance-fee loans are offered by companies who claim they
can guarantee you a loan for a fee, paid in advance. The fee may range from $100 to
several hundred dollars.)
Exceptions to the Rule
While most types of telemarketing calls are covered by the Rule, there are
exceptions. The Rule does not cover:
- Calls placed by consumers in response to general media advertising, except calls
responding to ads for investment opportunities, credit repair services, recovery room
services, or advance-fee loans.
- Calls placed by consumers in response to direct mail advertising that discloses all the
material information required by the Rule, except calls responding to ads for investment
opportunities, prize promotions, credit repair services, recovery room services, or
advance-fee loans.
- Catalog sales.
- Calls initiated by the consumer that are not made in response to any solicitation.
- Sales that are not completed, and payment or authorization for payment is not required,
until there is a face-to-face sales presentation.
- Calls from one business to another unless nondurable office or cleaning supplies are
being offered.
- Sales of pay-per-call services and sales of franchises. These are covered by other FTC
rules.
What You Can Do To Protect Yourself
It's very difficult to get your money back if you've been cheated over the phone.
Before you buy anything by telephone, remember:
- Don't 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.
- 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.
- Always take your time making a decision.
- Legitimate companies won't pressure you to make a snap decision.
- It's never rude to wait and think about an offer. Be sure to talk over big investments
offered by telephone salespeople with a trusted friend, family member, or financial
advisor.
- Never respond to an offer you don't understand thoroughly.
- Never send money or give out your credit card or bank account number to unfamiliar
companies.
- Be aware that any personal or financial information you provide may be sold to other
companies.
For More Help
Before you buy from an unfamiliar organization, check
it out with some of these groups. Your local phone directory has phone numbers and
addresses.
National Fraud Information Center
Call toll-free 1-800-876-7060 Monday through Friday, 9 a.m. to 5:30 p.m. EST.
Call For Action, Inc.
3400 Idaho Ave., N.W., Suite 101
Washington, DC 20016
202-537-0585
State Attorney General
Better Business Bureau
Local consumer protection organization
National Charities Information Bureau
19 Union Square West
New York, NY 10003-3395
212-929-6300
To stop unwanted telephone sales calls from many national marketers, send your name,
address, and telephone number to:
Direct Marketing Association
Telephone Preference Service
P.O. Box 9014
Farmingdale, NY 11735-9014
Under the Telephone Consumer Protection Act of 1991, you can ask that companies put you
on their "do not call" lists. If the company calls you again, you can bring
action in Small Claims Court.
|
