RBC I When a telemarketer called Rangely resident René Harden last week, it seemed a little strange. The Federal Trade Commission’s (FTC) Telemarketing Sales Rule (TSR) prohibits sales calls before 8 a.m. and after 9 p.m., and this one was made close to 9:30 p.m.
The representative, who claimed to be from DISH Network, said he needed Harden’s credit card number to update company records. Harden didn’t have a credit card.
But to find out what he would do next, she told him she couldn’t find it.
“He didn’t get threatening, but you could tell in his voice, it was escalating, it was more demanding,” she said. “I said, ‘Why don’t you call me back and maybe I’ll find it by then.’ He said, ‘I’ll call you back in the morning.’”
The caller never followed up, but Harden did. When she reported the incident to DISH Network, she was told that besides the late hour and lack of knowledge about Harden’s account, there were other clues the call was a fraud.
For one, the caller hadn’t verified the personal information he should have. Harden’s Caller ID read simply “DISH” rather than “DISH Network,” and while the number showed area code “866,” common to telemarketing companies, the remaining digits read “0000.” The company would have made its full number available, she was told.
American consumers lose billions of dollars each year to telemarketing fraud, ranging from interest-reduction and advance-fee scams to charity schemes. While scam operations are known as “boiler rooms” because of the high pressure callers often place on potential victims, fraudulent phone calls—and the websites, testimonies and documents that accompany them—can seem both professional and legitimate.
However, “[J]ust because something sounds good over the phone or looks attractive on the Internet or in a mailing, that doesn’t mean it’s true,” says the U.S. Department of Justice (DOJ) in an online document about mass-marketing fraud. “For example, on the Internet it’s easy to find or buy software that allows anyone, at minimal cost, to set up a professional-looking website. That means that criminals can make their websites look as impressive as those of legitimate e-commerce merchants.”
Knowing what information to share with which callers can compound the problem. While reputable sales companies often need personal data like credit card numbers or passwords to complete a transaction, fraudulent callers may ask consumers to “confirm” data they can then use to steal money or identities.
To know whether a telemarketing call is legitimate, consumers can do their homework. Researching a business online, calling a reputable company’s customer service number to see whether a call was consistent with policy and confirming a company’s credentials with the Better Business Bureau (BBB) can help.
Even thorough checks, however, can leave consumers vulnerable.
“Fraudulent operators open and close quickly, so the fact that no one has made a complaint yet doesn’t guarantee the company or charity is legitimate,” warns the National Consumers League (NCL) at www.fraud.org. “Ask for advice about the type of pitch you received and the danger signs of fraud.”
During a call, knowing basic elements of the TSR can help consumers identify potential fraud. The FTC mandates that telemarketers identify the call as sales-oriented, give the company’s name and state what they’re selling before starting their pitch. It also prohibits telemarketers from asking for an up-front fee if they imply they can get you a loan, authorize a new credit card or fix your credit.
Telemarketers can’t require payment for a consumer to win a prize nor can they claim a payment will up his or her chances of winning something, says the NCL.
Other tactics are harder to spot. Telemarketers who continue to call when consumers have asked them to stop, those who use fear-mongering to sway listeners or pressure people to make a decision or wire money, immediately are suspect. The FTC encourages recipients to use Caller ID to avoid the calls when possible. If they suspect a telemarketer’s claims are fraudulent, they can file a complaint with the FTC at www.ftc.gov/faq/consumer-protection/submit-consumer-complaint-ftc.
One way consumers can cut down on telemarketing calls and the potential for fraud is to register landlines and cell phone numbers with the Federal Do Not Call Registry (1-888-382-1222, www.donotcall.gov). Established in 2003, the Registry gives most telemarketers 31 days to stop calling numbers once they’re placed on the list. There are exceptions: charities, survey-takers and political organizations are exempt as are businesses customers who have already patronized a business or given permission to call.
If a company that doesn’t fit an exemption continues to call after the removal period, there’s a good chance the business isn’t legitimate and that merits filing a complaint, the FTC says.
Finally, buyers purchasing from telemarketers with whom they haven’t done business before should use a credit card, which offers some consumer protection, instead of a money order, check or cash.
They should also keep in mind the risks: losing a few hundred dollars or even a life’s savings can be just the start of a victim’s woes. The U.S. Department of Justice reports that “feelings of substantial depression and embarrassment” often accompany mass-marketing fraud, with victims who suffer more substantial losses experiencing deeper psychological trauma.
For Harden, telling people about her experience via Facebook was a proactive way to put others on guard.
“I’m not going to let this happen to my neighbors and friends if I can help it,” she said. “This is my community. I need to help protect it if I can.”
