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Learn about common telemarketing fraud tactics, how you can be harmed, and important do's and don'ts to protect yourself. Discover ways to remove your name from solicitation lists and examples of popular scams.
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Telemarketing Fraud Facts • Prizes and sweepstakes were the top telemarketing fraud in 2001 • Avg. loss to sweepstakes fraud last year: $3,119/person
Telemarketers... • Make it appear the good, service, or charitable cause being offered is worth the money you’re asked to send • Try to obtain immediate payment before you can inspect the item of value you expect to receive • Try to resemble legitimate businesses or government agencies
How can I be harmed? • Receive nothing in return for money you sent • Receive something of inferior value to what you expected • Required to pay in advance • Use misleading statements:“You must act immediately because this is a limited time offer.” “Your neighbors have already taken advantage of this offer, so don’t waste time!”
Telemarketing Do’s • Ask telemarketers for the name and address of their company and clear explanation of the offer • Call Consumer Affairs office in the company’s location to ask if complaints have been made. • Ask about refund policies • Ask for written material to study before making a decision
More Do’s • Get advice from family and friends; accountants or bankers before making big purchases or investments • If you don’t want to be called, ask to be put on the company’s “do not call” list. • If request violated, you can sue for up to $1,500. • Report violations to the Office of Consumer Affairs: 800-552-9963 • Share tips with family and friends. Con artists typically target the elderly.
Telemarketing Don’ts • Don’t pay for any prize or send money to increase your chances of winning. It’s illegal to charge for entering contests. • Don’t be intimidated into buying something over the phone. • Don’t give any bank account information • Don’t give your credit card number over the phone unless you made the call.
Telemarketers must disclose... • The seller’s identity • That the purpose of the call is to sell • The nature of the goods or services offered • That no payment or purchase is necessary to win if a prize is offered
Telemarketers cannot... • Call again after you have asked them not to • Call before 8:00 a.m. or after 9:00 p.m. • Withdraw money from your checking account without your verifiable permission • Misrepresent the offer or the goods or services offered or make false statements to get you to pay • Seek payment for credit repair services until these services have been delivered
Exceptions to this Rule • Calls are placed by the consumer • Catalog sales • Calls seeking charitable donations • Calls involving sales that are not completed, and payment is not required until after a face-to-face sales presentation • Business-to-business calls (unless nondurable office or cleaning supplies are being offered)
Legitimate Uses of Telemarketing • Religious and other organizations calling their own members and participants • Political campaigns • Businesses targeting people who cannot be reached by any other way
Removing your name from lists • Tell major telemarketing companies to remove you from solicitation lists: • Direct Marketing Association, Telephone Preference Service, P.O. Box 9014, Farmingdale, NY 11735 • Tell major direct mail companies to remove your name from their lists: • Direct Marketing Association, Mail Preference Service, P.O. Box 9008, Farmingdale, NY 11735
More Examples • Scholarship Fraud “Congratulations, you’ve been selected as a finalist for a nationwide scholarship” • “Guaranteed results”, “We do all the work”, “Not available elsewhere”, “May cost some money” • Pyramid Schemes (a.k.a. Multi-Level Mktg) “Sales distributors needed for nationwide ….” • Emphasize recruiting distributors rather than selling a product
Still More Examples • Health Fraud • Arthritis Products, Cancer Clinics, AIDS Cures, Instant Weight Loss, Baldness Remedies, Wrinkle Removers, Sexual Aids, Nutritional Schemes, Muscle Stimulators …. • Home Improvement/Repair & Disaster Services “I just finished a job in the area and have some leftover material ….” “I can do it… but I need half the money up-front” • #1 complaint to consumer agencies in 2000
Warning Signs • “Free”, “Guaranteed”, “No Risk”, “Limited Time Only” • “May I have your credit card number …” • Testimonials (Who are these people?) • Fantastic claims, ultra-low prices • High pressure sales tactics • Sales pitches aimed at your weaknesses • Unwilling to provide written information • “Just give me 1% of your trust …”
How to Protect Yourself • Let your Common Sense take over! • “If it sounds too good to be true, it probably is!” • Why are you lucky enough to be in on the secret? • When in doubt say “NO” • Don’t make a decision if you don’t fully understand what’s going on • Don’t be pressured into buying • Ask for more information and more time to consider • Hang up on high pressure salespersons
Added Protection • Ask detailed questions, require detailed answers • Research the firm and the product • Get ALL information in writing before agreeing • Never pay cash • Leave a paper trail, take advantage of consumer laws • Never pay in advance (more than 1/3) for services
How to Complain • Clearly identify the problem and what you think is a fair settlement • Gather your records • Receipts, work orders, contracts, warranties, canceled checks, etc. • Complain directly • Start with the person/firm who made the sale • Document your complaint process • Dates, Who you talked to, Copies of letters, etc. • Don’t Quit until you get results
Who Will Listen? • Office of Consumer Affairs • for Arlington: (703) 228-3260 • for Fairfax County: (703) 222-8435 • elsewhere in VA: (800) 552-9963 • State Attorney General’s Office • 800-451-1525 • Better Business Bureau • www.bbb.org • Federal Trade Commission • www.ftc.gov, 1-877-IDTHEFT