What are the most common telemarketing scams, and how can I recognize when I’m being suckered?

Prize promotions, lottery clubs and trips are commonly used scams. Typically, consumers receive a telephone call congratulating them on winning a valuable prize. To claim or hold the prize, the consumer must purchase something or send a down payment. Do not fall for this. If consumers have to pay for their prizes, they are not really winning.

Another type of scam involves investment or business opportunity fraud. Scam artists begin by telling consumers about a “hot” new investment or opportunity that promises large financial returns at a very low risk. Once consumers deposit their money, telemarketers will either disappear or tell the consumers the opportunity failed. Stay away from this type of telemarketing fraud. It can be the most financially damaging. If you want to invest, call a well-known investment firm. Beware of any business deals that seem to good to be true. They probably are.

Service providers make up another growing field of fraudulent telemarketers. Typically, the scams start with telephone calls to elderly consumers from contractors stating they did some work in the neighborhood and noticed that the consumer’s house or roof needed repair. The contractors then offer to fix the problem at a reduced rate, telling the victim not to tell anyone because they cannot offer the same rate to others. Once a down payment is made, consumers never see the contractors or their money again.

Finally, fraudulent telemarketers use scams that appear to be connected to a governmental agency. Almost always these scams involve the victims sending in payment to an agency or calling a number that connects them to the fraudulent telemarketers. An easy way to check on the legitimacy of the caller is to look in the phone book and give the agency represented a call.

Here are 10 characteristics of fraudulent telemarketers:

Asking for payment to cover the administrative fee

Requiring an immediate decision

Refusing to send information about the transaction

Claiming huge profits

Asking for a donation, but not telling how it will be used

Insisting payment be sent through a wire carrier or private courier

Requesting cash

Asking for the consumer’s social security number

Continuing to call, even after the consumer has asked them to stop

Offering to get your money back after you have already been defrauded once by telemarketers

When receiving a call, look for these characteristics and keep in mind the protections provided by Kansas statutes. Do not be afraid to question the telemarketers. Telemarketing agencies are only calling to get the consumer’s money. When talking to telemarketers, remember the old saying, “There’s a sucker born every minute.” Do not let the telemarketers sucker you.