Phone Fraud
(Advance September 15, 2002)
The recent column on seniors and fraud has brought a
number of calls from victims of deceptive people. These victims
experienced a great deal of stress, embarrassment and berated themselves
for being so trusting. By contacting the police and the Better
Business Bureau they hope that other people may be spared this type of
fraud.
Seniors can also be victimized by deceptive telemarketing or phone
fraud. This is a serious crime punishable by jail. What is it? It
means using the phone:
(1) to obtain payment from you
for a non-existent or misrepresented product, service or charitable gift
(2) to obtain your private
banking information or credit card number
(3) to offer you a prize for
which you must pay
(4) to obtain your money
fraudulently in any way.
Most
telemarketers work for honest businesses or not-for-profit groups which
may contact you over the phone in order to promote their products or
services, or to solicit donations.
How
can you recognize the difference between a legitimate business and a
scam? Here are some classic signs of a dishonest telemarketer:
·
If it sounds too good to be true, it probably is. You might be
told that you won a big prize in a contest that you don’t remember
entering or be offered a once-in-a-lifetime investment that offers a
huge rate of return.
·
You must pay or you can’t play. You are told you are a winner,
but you must agree to send money to the caller in order to pay for
delivery, processing, taxes, duties or some other fee in order to
receive your prize. The caller may even send a courier to pick up your
money.
·
You must give them your private financial information. The
caller asks for all your confidential banking and/or credit card
information. Honest businesses do not require these details unless you
are using that specific method of payment.
·
You are asked to send cash. Dishonest telemarketers ask for cash
or a money order, rather than a cheque or credit card because cash is
untraceable and can’t be cancelled.
·
The caller is more excited than you are. The crooks want to get
you excited about this “opportunity” so that you won’t be able to think
clearly.
·
The person calling claims to be a government official, tax
officer, banking official, lawyer or some other person in authority.
·
The stranger calling wants to become your friend. The person
calls you by your first name and asks you a lot of personal or lifestyle
questions (such as how often your adult children visit). Dishonest
telemarketers like to find out if you are lonely and willing to talk.
·
It is a limited opportunity and you are going to miss out. If
you are pressured to make a big purchase decision immediately, it is
probably not a legitimate deal. Real businesses or charities will give
you a chance to check them out or think about the purchase.
What
can you do to protect yourself? Legitimate telemarketers have nothing
to hide, but criminals will say anything to part you from your money.
You have the right to check out any caller by requesting written
information, a call back number, references, and time to think over the
offer. Be careful about providing confidential personal information,
especially banking or credit card details, unless you are certain the
company is legitimate.
