Sept. 2002 This Active Life -- Ask the Expert

Avoiding Fraud and Con Artists

Q: Why are elderly consumers being targeted for fraud?
Studies have shown that most elderly fraud victims don't make the connection between illegal telemarketing and criminal activity. Retired consumers don't associate the voice on the phone with someone who could be trying to steal their money.

Q: How many con artists operate in the United States?
The FBI reports that there are an estimated 14,000 illegal marketing operations cheating consumers every day. As much as $40 billion per year is lost to fraudulent marketers, and more than half of telemarketing fraud victims are age 50 and over.

Q: What are the most common telemarketing scams?
The most common include unauthorized long-distance telephone service changes (called "slamming") or charges added to your bill without your authorization (called "cramming"). If you are unsure about any long-distance phone number, ask your operator before you dial.

Q: What other types of consumer fraud should I watch for?
Mail fraud includes pyramid/chain letters, work-at-home offers, health and diet products, free goods, investment/loan opportunities, and vacation prize promotions. Internet fraud includes many of the scams found in mail fraud, but Internet auction sites have the highest number of complaints. Internet fraud is even more insidious because the company can hide on the Internet--it is not tied specifically to any physical location.

Q: What can I do to avoid becoming a victim?
Never give out any personal information (i.e., Social Security Number, credit card number, bank PIN or account number, driver's license number) over the phone, Internet, or mail unless you initiate the correspondence. (Of course, you can feel comfortable sharing appropriate information with your local, state, or national Association.) As the old saying goes--"If it seems too good to be true, it probably is."

--Doug Terwilliger, NEA Member Benefits

For More

Consumers can contact the National Fraud Information Center (NFIC) to get advice about suspicious telephone solicitations and report possible telemarketing fraud to law enforcement agencies. In 1996, the Internet Fraud Watch was created, which enables the NFIC to offer consumers advice about promotions in cyberspace and to route reports of suspected online and Internet fraud to the appropriate government agencies.

Generally, to process fraud reports, the NFIC needs the following information: name of company, names of people you dealt with at the company, company address (including website or e-mail address if you are reporting Internet fraud), company phone number, description of what good or service was offered, amount of money the company requested, the amount of money you actually paid, how the payment was made, date of first contact with company, date of payment, your name, address, and phone number, and a short description of what occurred. The best way to report possible fraud to the NFIC is by calling them toll-free at (800) 876-7060. The NFIC can also be reached at P.O. Box 65868, Washington, DC, 20035.

Quick Tips

Protect Your ID
Never give our personal identifying information (such as a bank account or social security number) over the phone unless you initiated the contact.

Check Your Bills
Look carefully at each of your phone and credit card bills and call the company's customer service number if you see unfamiliar numbers or charges.

Throw It Out!
Throw out any letter, and delete any e-mail, that uses high-pressure sales tactics and sounds too good to be true. It probably is!