Telemarketing Fraudes

Telemarketing fraud refers generally to any scheme to defraud where the persons carrying out the scheme use the telephone for communicating with possible victims and trying to persuade them to send money to the scheme.

A fraudulent telemarketing operation typically uses many false and promises when it solicits people to buy goods and services or to invest money.

This system is usually used for:

  • Obtaining payment before the victim can inspect the item of value they expect to receive.

A fraudulent telemarketer will always insist on advance payment by the consumer before this receives that good or service.

If consumers were to receive the promised goods or services before payment, and realized that the good had no value, most of them would cancel the transaction and refuse to pay for it.

For victims who have money orders, the telemarketers use nationally courier delivery services, for delivering victims' checks by the next business day.

For those who have credit cards the telemarketers obtain merchant accounts at financial institutions, for processing them immediately.

  • Trying to resemble legitimate telemarketing operations or legitimate businesses.

This is another factor that distinguishes fraudulent from legitimate telemarketing operations

Fraudulent telemarketers recognize that they can contact victims located outside their state. In the case that the victim realizes that it was defrauded, she can contact a law agency with complaints or can travel to the telemarketing operation and confront the telemarketers about their losses.

For not becoming victims of telemarketing frauds there are some suggestions to follow:

  • Not to believe that everyone calling with an interesting investment opportunity is trustworthy, especially if you do not know the person who’s calling or their company.
  • Not to be afraid to request some documentation from the caller for verifying the validity of the company.
  • Not to be deceived by the promise of a prize in return for a low cost purchase.
  • Not to invest a product or service without checking out the investment, product, service, and the company.
  • Not to be afraid to hang-up the phone if there is something that seems to be suspicious.
  • Avoid giving information to unknown parties. For example, some fraudsters try to be charities and ask for credit card details.

If strictly following these steps there is a certitude of not being deceived by “suspicious” telemarketers.

There are a lot of cases where some people where victims of such situations and that’s why it is necessary to take in consideration some suggestions that could be a good advice for anyone and that could prevent fraudulent telemarketing.

It is easy to observe that global rise of telemarketing produced a considerable increase in telemarketing fraud. People are vulnerable to illegal scams via telemarketing, risking to become victims of such fraudulent acts.

There are some categories of telemarketing frauds that are usually committed:

  • Advance fee loans (you don’t have to pay money up front, you have to apply for loans through local banks)
  • Telephone slamming (if you get a telemarketing call for new telephone service,  you should  be careful to your answer)
  • Magazine sales (you must ask questions for being sure you understand the deal)
  • Credit card offers (don't pay fees up front to get a credit card).

Learn More About:

The advantages and disadvantages of telemarketing.

The Benefits of Using Telemarketing

Telemarketing call center evolution by b2c telemarketing services.

B2C Outbound Telemarketing Services - The Evolution Segment for Booming Call Center Services

Phone and telemarketing fraud.

Phone and telemarketing fraud: an overview


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