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 ask for more information about the company and 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 you get brochures about costly investments, ask someone whose financial advice you trust to review them. Bear in mind that even the slickest, well-produced brochures may contain false information.
  
  
• 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. 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.
  
  
• Obtain a salesperson's name, business identity, telephone number, street address, mailing 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.
  
  
• Before you give money to a charity or make an investment, find out what percentage of the money is paid in commissions and what percentage actually goes to the charity or investment.
  
  
• Before you send money, ask yourself a simple question. "What guarantee do I really have that this solicitor will use my money in the manner we agreed upon?"
  
  
• Don't pay for anything you haven't received yet. Requests for advance payments should be regarded skeptically.
  
  
• 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.
  
  
• Always take your time making a decision. Legitimate companies won't pressure you to make a snap decision.
  
  
• Don't pay for a "free prize." If a caller tells you the payment is for taxes, he or she is violating federal law.
  
  
• Before you receive your next sales pitch, decide what your limits are -- the kinds of financial information you will and won't give out on the telephone.
  
  
• 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. Some things should never be rushed.
  
  
• Never agree to purchase a product or service if you don't understand the terms completely. Scam artists often try to confuse people by making things complicated.
  
  
• 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.
  
  
• Third parties often sell your personal information to telemarketers.
  
  

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