Telemarketing Frauds Are Lurking

How to avoid being tricked by a telephone offer.

Federal Bureau of Investigation

When you send money to people you do not know personally or give personal or financial information to unknown callers, you increase your chances of becoming a victim of telemarketing fraud. The Federal Bureau of Investigation has compiled ways to help you stay away from those telemarketing schemes.

When you send money to people you do not know personally or give personal or financial information to unknown callers, you increase your chances of becoming a victim of telemarketing fraud. The Federal Bureau of Investigation has compiled ways to help you stay away from those telemarketing schemes.

What a Caller May Tell You:

"You must act now or the offer won't be good."

"You've won a free gift, vacation or prize."

"You must send money, give a credit card or bank account number, or have a check picked up by a courier."

"You don't need to check out the company with anyone."

"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 telephone.

Tips to Avoid Telemarketing Fraud:

It is 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. But, beware -- not everything in writing is true.
• 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.
• Obtain a salesperson's name, business name, telephone number, address, and business license number before you transact business. Some con artists give out false names, telephone numbers, addresses, and business license numbers. Verify the accuracy of these items.

Here are other cautions and suggestions:

Always take your time making a decision. Legitimate companies will not pressure you to make a snap decision.

Some con artists will send a messenger to your home to pick up money, claiming it is part of their service to you. In reality, they are taking your money without leaving any trace of who they are or where they can be reached.

Don't pay for a "free prize." If a caller tells you the payment is for taxes, he or she is violating federal law.

If you are asked to give money to a charity, find out what percentage actually goes to the organization.

Never send money or give out personal information such as credit card numbers and expiration dates, bank account numbers, dates of birth, or Social Security numbers to unfamiliar companies or unknown persons.

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.

If you have information about a fraud, report it to state, local, or federal law enforcement agencies.

This article, and hundreds more, can be found on the NEA Member Benefits web site in the "Member Library" section: www.neamb.com/consumer_articles.jsp