[HOME]
[Annual Report]
[CALENDAR]
[NANAY-California]
[NANAY-Michigan]
[NEWS UPDATE]
[Caregiver Support]
[SERVICES]
[Web links]
[Webmall] | |
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
http://www.seniors.gov/articles/0101/telephone-scams.html
|
