Telemarketing Fraud: It

1
Telemarketing FraudIts a Crime

• University of Georgia Cooperative Extension
  Service
• Georgia Governors Office of Consumer Affairs

2
Telemarketing Scams
3
Prize Offers and Promotional Sales

• Con artists require payment for you to receive a
  prize.
• Prizes are worthless or overpriced.
• In Georgia, it is illegal to require someone to
  make a purchase to receive a prize.

4
International Lotteries

• The caller invites you to participate in
  high-stakes foreign lotteries
• U.S. Consumers spend 120 million per year on
  these international lotteries
• Federal law prohibits the cross-border sale or
  purchase of lottery tickets by phone or mail

5
Charitable Solicitations

• Con artists use the name of a charity (or a
  similar name) to obtain a donation
• Paid solicitors raising money for a charity in
  Georgia must identify themselves as paid
  solicitors at the beginning of the call
• Georgia law prohibits a charity from sending a
  courier to a residence to pick up a cash donation

6
Disaster-related Solicitations

• Con artists take advantage of tragedies and
  disasters to solicit contributions
• They play on your emotions to donate to victims
  of the tragedy or disaster

7
Magazine Sales

• Discount rates may be more costly than news
  stand prices
• Subscriptions may be negative option renewals,
  meaning your credit card will be charged for
  renewals until you contact the company to cancel

8
Investments

• Con artists promise large returns for fraudulent
  investments
• They may tell you they have inside information
  or that this is a one-time offer
• If it sounds too good to be true, it probably is
• Investigate before you invest

9
Travel Packages

• Free or low-cost vacations that end up costing
  more than you were led to believe
• You may pay for a vacation you never receive
• You may be required to sit through high-pressure
  sales presentations

10
Credit Card Offers

• Often require an advanced fee
• May only be able to use the card to purchase
  over-priced items from a special catalog
• Most companies offer credit cards at not cost
  other than the interest on purchases

11
Health Products

• Miracle cures and supplements that are often of
  little value and may even be harmful
• Sometimes offer prizes to entice you to buy

12
Credit Card Loss Protection Plans

• Claim to protect you from liability due to
  fraudulent use of your credit cards
• Federal law limits your liability for
  unauthorized charges to 50 per card

13
Recovery Scams

• Con artists target victims of other frauds
• Promise to recover losses for a fee
• Law enforcement agencies NEVER ask victims to pay
  for investigations or to recover losses

14
Telephone Cramming and Slamming

• - Cramming charges on your phone bill for
  services not requested or used.
• - Slamming unauthorized switch of your long
  distance carrier.
• - Avoid slamming by requesting a PIC freeze
  from your local telephone provider.

15
Before You Send Money to a Telemarketer

• Check references
• Contact your local Better Business Bureau
• Contact the Governors Office of Consumer Affairs
• Contact the Secretary of States Office regarding
  non-religious charities

16
Before You Send Money to a Telemarketer

• Request that written information about the
  company be mailed to you.
• Ask for an address and telephone number for the
  caller.

17
Warning SignsThe Caller

• Requires an immediate decision
• Tells you the offer is good for today only
• Gets hostile when you ask questions
• Encourages you not to tell anyone
• Requests immediate payment

18
How Callers Get Your Name

• Filling out and returning junk mail
• Registering for prizes and sweepstakes
• Warranty cards
• From lists sold by others

19
Limiting Access

• Sign up for the Georgia No Call List
• Notify companies you do business with that you do
  not want information about you sold to others
• Call (888) I OPT OUT to stop credit card offers