Are
You a Target of Telephone 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 they’re 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 you'd 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.
Call
for Action
5272 River
Road, Suite 300
Bethesda, MD
1-800-647-1756
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.
For
More Information
The
FTC works for the consumer to prevent fraudulent, deceptive and unfair business
practices in the marketplace and to provide information to help consumers spot,
stop and avoid them. To file a complaint, or to get free information on any of 150
consumer topics, call toll-free, 1-877-FTC-HELP
(1-877-382-4357), or use the online
complaint form. The FTC enters Internet, telemarketing, and other
fraud-related complaints into Consumer
Sentinel, a secure, online database available to hundreds of civil
and criminal law enforcement agencies worldwide
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