Frauds, Scams, and Slams: Telemarketing Scams and Prize Offer Fraud

1. Frauds, Scams, and Slams: Telemarketing Scams and Prize Offer Fraud Presented by: Karen Lynn Poff Senior Extension Agent, Family and Consumer Sciences

2. Be Cautious About Telephone Sales Pitches “Please put me on your company’s ‘DO NOT CALL’ list and do not call me again.”

3. Why Older People are Often Targeted • May Be More Trusting • More Likely to Be At Home • May Be Lonely • May Not Want to Hang Up • May Not Think Fraud Could Happen to Them • May Be Easily Intimidated By Smooth Talking Callers • May Be Embarrassed to Report Fraud

4. How Can You Avoid Fraudulent Offers? • Remember That Anyone Can Be Swindled • Hang Up • Rely on an Answering Machine, Let Them Leave a Message • Don’t Buy Unless You Made the Call • Ask for Written Information • Ask for the Telemarketer’s Name, Address, and Phone Number

5. How Can You Avoid Fraudulent Offers? • Never Make a Quick Decision • Be Cautious About Answering Surveys • Throw Away Solicitations Saying You Have “Won a Prize” • Report Suspicious Calls to the Authorities

6. Add Your Phone to the National “Do Not Call” Registry: CALL: 1-888-382-1222 Make the Call From the Phone You Want to Register Remember to Renew Your Registration After 5 Years You Can Also Register at: www.donotcall.gov How Can You Avoid Fraudulent Offers?

7. Tip-Offs to Phone Fraud • You Must Act Now • You Have “Won” To Claim Your Prize Send Money for Taxes or Shipping • To Update Account Information Just Provide Your Social Security Number, Bank Account Number, Credit Card Number, etc. (Or Other Personal Information)

8. More Tip-Offs to Phone Fraud • Someone Will Be By to Pick Up Your Money • Send Money By Wire or Courier • You Don’t Need to Check Our References • You Can’t Afford to Miss This “High-Profit/No-Risk” Offer.

9. How Do Fraudulent Telemarketers Get Your Telephone Number? • Telephone Directory • Mailing Lists • Sucker Lists

10. Be Careful What You Sign Up For • Sweepstakes and Drawings • Community Events • Shopping Malls

11. Federal Telemarketing Sales Rule • Covers Most Types of Telemarketing • Illegal to Call If You’ve Asked Them Not To • Illegal to Call Before 8 a.m. or After 9 p.m. • May Not Misrepresent Any Facts or the Nature or Value of Prizes • Must Tell You If the Call is a Sales Call and What Company or Organization They Represent

12. Prize Offer Fraud • Claims You Have “Won” a Fabulous Prize • But You Need to Read the Fine Print

13. Written Sweepstakes Solicitations • Letters and Postcards May Announce You “Won” • Prizes are Worthless • May Ask You to Send Money or Buy Something

14. Telemarketer Solicitations • Beware of Needing to Claim a Prize in 48 Hours

15. Legitimate Promoters • Reputable Marketers or Organizations • Legitimate Contests Never Charge • You Win By Chance • Winners Do Not Have to Pay Fees or Buy Anything

16. Virginia Prizes and Gifts Act : • If Told You Have Won--You Must Be Given Your Prize or Gift Within 10 Days—No Obligation • Prize Notice Must Include Retail Value of Prizes, Odds of Winning, Number of Prizes, Conditions for Winning

17. Virginia Prizes and Gifts Act : • Cost of Pay-Per-Call Must Be Disclosed • Shipping Charges May Not Exceed Cost of Delivery • Handling May Not Exceed $5 • No Purchase is Necessary

18. Federal Deceptive Mail Prevention and Enforcement Act: • Similar to the Virginia Act • Promotions May Not Claim You’re a Winner Unless You’ve Really Won • No Purchase is Necessary • Fake Checks Must State They Have No Cash Value • Cannot Imply Federal Government Endorsement

19. Federal Deceptive Mail Prevention and Enforcement Act: • Skill Based Contests Are Treated Differently • Not Based on Chance to Win • May Include Games, Puzzles, or Quizzes • Can Legally Require a Fee

20. Federal Deceptive Mail Prevention and Enforcement Act: Promotions Must Tell You: • Terms and Conditions of the Contest • How Many Rounds Must Be Completed to Win • When the Winner Will Be Determined • Name and Address of the Sponsor

21. How To Protect Yourself Federal Trade Commission Advice: • Just Say No and Ask For Your Name to Be Put on the Company’s DO NOT CALL List • Pay No Fees and Buy Nothing • Pay No Shipping or Taxes • Be Suspicious of Bulk-Mail “Winners” • Never Send Money Overnight or By Courier

22. How To Protect Yourself • Remember—You Can’t “Win” a Contest You Didn’t Enter • Read the “Fine Print” • Beware—Not All “800” Numbers Are Toll-Free • Never Give Bank Account or Credit Card Information to a Promoter • Check With the Better Business Bureau for Previous Complaints

23. Do You Want to Reduce Your Junk Mail and E-mail? • “Opt-Out” of Pre-Approved Credit Card Offers: CALL: 1-888-567-8688 • Remove Your Name From Credit Bureau Marketing Lists • Register with the Direct Marketing Association

24. Do You Suspect an Older Adult is Being Victimized by Telemarketing Scams? Signs to Look For: • Gets Many Telemarketing Calls Offering Prizes and Vacations • Owns Many Inexpensive or Low-Quality Items (Jewelry, Gadgets, etc.) • Writes Many Small or Escalating Checks to Out of State Companies • Is Secretive About Phone Calls

25. As a Caregiver What Actions Should You Take? • Avoid Making the Older Person Feel Stupid or Foolish • Remember That Anyone Can Become a Victim • Avoid Threatening to Take Away Financial or Physical Independence (Which May Cause the Person to Become Secretive About Their Activities)

26. As a Caregiver What Actions Should You Take? • Help the Older Person Report the Fraud to Appropriate Agencies • Emphasize That Con Artists Are Criminals • Help the Person Learn How to Detect Phone Scams • Encourage Them to “Hang Up” • Be Available to Help Them Say No

27. Many Agencies and Organizations Are Available to Help Federal: • Federal Trade Commission • Department of Commerce Office of Consumer Affairs • Securities and Exchange Commission • U. S. Postal Service Local and State: • Virginia Office of Consumer Affairs • Office of the Attorney General • State Corporation Commission • Better Business Bureau • Local Law Enforcement

28. Frauds, Scams, and Slams:Telemarketing Scams andPrize Offer Fraud This program is available as a presentation to community groups. Contact Karen Poff for more information. Phone: 540/459-6140 E-mail: kpoff@vt.edu Presented By: Karen Lynn Poff, Senior Extension Agent Family and Consumer Sciences Adapted From a Presentation By: Jan Park, Ph.D., Extension Specialist, Oklahoma Cooperative Extension and information from the Federal Trade Commission and the Virginia Attorney General’s Office.