Signs of a Scam

Often, scammers who operate by phone don’t want to give you time to think about their pitch; they just want you to say “yes.” But some are so cunning that, even if you ask for more information, they seem happy to comply. They may direct you to a web site or otherwise send information featuring “satisfied customers.” These customers, known as shills, are likely as fake as their praise for the company.

Here are a few red flags to help you spot telemarketing scams. If you hear a line that sounds like this, hang up, and file a complaint with the FTC:

  • You’ve been specially selected (for this offer).
  • You’ll get a free bonus if you buy our product.
  • You’ve stayed at one of our resorts in the past so we have a special offer for you.
  • You’ve been selected for a complimentary (free) vacation.
  • You’ve won one of five valuable prizes.
  • You’ve won big money in a foreign lottery.
  • This investment is low risk and provides a higher return than you can get anywhere else.
  • You have to make up your mind right away.
  • You trust me, right?
  • You don’t need to check our company with anyone.
  • We’ll just put the shipping and handling charges on your credit card.
  • Calling to notify you that the IRS has issued a warrant for your arrest. You need to pay immediately.
  • Your computer is infected with a virus.
  • Your credit card has been suspended. I need to verify your identity to re-activate it.
  • You can buy a gift card and read us the numbers.
  • You can wire the money to us from any Western Union outlet.

Why They’re Calling You

Everyone’s a potential target. Fraud isn’t limited to race, ethnic back­ground, gender, age, education, or income. That said, some scams seem to concentrate in certain groups. For example, older people may be targeted because the caller assumes they may live alone, have a nest egg, or may be more polite toward strangers.

Some Additional Guidelines

  • Don’t return phone calls from unknown callers in the area codes listed below. You receive a call from what appears to be a local, but unfamiliar number. Your phone rings once and then disconnects. You call it back and your call is directed to an international number that starts charging you, similar to a 900 number. A victim will not know what happened until their next phone bill arrives. The scammers work by calling victims using a phone number that looks like an ordinary domestic number. These numbers are actually foreign numbers that were carefully chosen to look like domestic number.
    • 268 – Antugua/Barbuda
    • 809 – Dominican Republic
    • 876 – Jamaica
    • 284 – British Virgin Islands
    • 473 – Grenada
  • Resist pressure to make a decision immediately.
  • Keep your credit card, checking account, or Social Security numbers to yourself. Don’t tell them to callers you don’t know — even if they ask you to “confirm” this information. That’s a trick.
  • Don’t pay for something just because you’ll get a “free gift.”
  • Get all information in writing before you agree to buy.
  • Check out a charity before you give. Ask how much of your donation actually goes to the charity. Ask the caller to send you written informa­tion so you can make an informed decision without being pressured, rushed, or guilted into it.
  • If the offer is an investment, check with your state securities regulator to see if the offer — and the offeror — are properly registered.
  • Don’t send cash by messenger, overnight mail, or money transfer. If you use cash or a money transfer — rather than a credit card — you may lose your right to dispute fraudulent charges. The money will be gone.
  • Don’t agree to any offer for which you have to pay a “registration” or “shipping” fee to get a prize or a gift.
    Research offers with your consumer protection agency or state Attorney General’s office before you agree to send money.
  • Beware of offers to “help” you recover money you have already lost. Callers that say they are law enforcement officers who will help you get your money back “for a fee” are scammers.
  • Report any caller who is rude or abusive, even if you already sent them money. They’ll want more. Call 1-877-FTC-HELP or visit ftc.gov/complaint

What To Do About Pre-Recorded Calls

If you answer the phone and hear a recorded message instead of a live person, it’s a robocall. Recorded messages that are trying to sell you something are generally illegal unless you have given the company written permission to call you.

If you get a robocall:

  • Hang up the phone. Don’t press 1 to speak to a live operator or any other key to take your number off the list. If you respond by pressing any number, it will probably just lead to more robocalls.
  • Consider asking your phone company whether they charge for blocking phone numbers. Remember that telemarketers change Caller ID information easily and often, so it might not be worth paying a fee to block a number that will change.
  • Some cell phones have a feature to identify unsaved numbers. Enable this feature to learn if the caller is a known scammer.
  • Report your experience to the FTC online or by calling 1-888-382-1222.

If you get phone service through Internet or cable, you might want to look into services that screen and block robocalls. Try doing an online search for “block robocalls.”