Fraud Tip of the Day - September 3

How to Avoid Telemarketing Scams

You can avoid being scammed by a telemarketer. Our telemarketing scam tips can help you spot a bad deal a mile away.

• Don't purchase anything over the phone if you aren't familiar with the company making the product, providing the service or selling either the product or service to you. If the company's legitimate you can asking them for more information shouldn't be an issue. They'll be more than happy to tell you about them.
  
  
• If you're interested in the product or service, ask for written materials regarding them and wait for them to arrive before you make a purchase. If the materials you receive involve costly or complex investments, get financial advice from a trusted source before investing your money. Bear in mind that even the slickest, well-produced brochures may contain false information.
  
  
• If a business is unknown to you, investigate them. Start with the attorney general's office, the Better Business Bureau, consumer protection agencies or other watchdog groups in your area, and the National Fraud Information Center. If you can't dig up any dirt on a company, it doesn't mean they're legitimate. It could be a new scam no one's reported yet.
  
  
• Get as much information as you can before conducting business or making a transaction. Ask the telemarketer their name, the business they work for and its contact information. Be aware that a crooked telemarketer is likely to give you phony answers to these questions. Verify their answers before making a purchase.
  
  
• If you decide to make an investment or donate to a charity, ask the caller how much of your money goes to cover overhead and how much ends up being invested or sent to the charity. You'd be surprised at how much of your money is eaten up by "administrative" costs.
  
  
• If you decide to donate money, buy something, or invest money with someone making an unsolicited to you ask yourself this: "How can I be sure my money will be used the way the caller says it will?" If you don't have a satisfactory answer to this question, hang up.
  
  
• Don't pay for anything you haven't received yet. Requests for advance payments should be regarded skeptically.
  
  
• If a messenger or courier arrives to pick up your payment, be wary. This is a common method crooks use to cover their tracks and disappear with your money forever.
  
  
• Take as much time as you need making financial decisions. High pressure sales tactics should not be tolerated.
  
  
• "Free" prizes should never cost you any money! If a telemarketer asks for a tax payment, they're breaking the law.
  
  
• Think about telemarketing long and hard so you're prepared the next time they call. Ask yourself how much personal or financial information you feel comfortable sharing with them on the phone and whether you want to deal with them at all.
  
  
• Asking a caller for time to mull things over before making a decision isn't rude. Take the time ask friends, family, or financial advisors what they think about a telemarketers offer. Important financial decisions should never be rushed.
  
  
• Never agree to purchase products or services too complex for you to understand. Scam artists often try to confuse people by making things complicated.
  
  
• Don't send payments to businesses or individuals you've never heard of. Only deal with people and businesses you trust. Never give out personal or financial information over the phone unless you know who you're talking to. Some examples of information to be stingy with are: bank account information, Social Security numbers, credit card number and their expiration dates, and your date of birth.
  
  
• Third parties often sell information about you to telemarketers.
  
  

If you think you've been contacted by a telemarketer using any of the above techniques, don't hesitate to report them to your local law enforcement agency, your state's attorney general or the Better Business Bureau.