A while back I talked to RCMP representatives on the subject of telemarketing, and I was quite surprised about what I learned. Though it can be used as a sensible marketing tool for Canadian businesses, the legitimacy of well-known companies has also provided an excellent opportunity for criminals to piggyback on the same system.
Unlike most other crimes, telemarketing fraud requires one essential element: victim participation. It is not limited by race, ethnic background, gender, age, education or income – everyone is a potential target.
In particular, I was shocked to learn that there is a common denominator with bogus prizes and high pressure tactics – most of the victims are seniors.
Representative Det. /Constable John Schultz of Phone Busters, a central agency which collects information on telemarketing complaints throughout Canada, said that 90 percent of phone fraud is currently not even being reported.
The overall results are alarming: elderly people lose millions of dollars yearly by being tricked into schemes ranging from complicated investment offers to bogus charity pitches or long-distance scams.
Telephone con artists can be incredibly skilled at sounding believable, while lying through their teeth. So the adage of being wary of strangers offering gifts should always apply. And if you do become a victim, failing to report the crime because of embarrassment or shame is exactly what criminals are hoping will happen. Silence in such a case only contributes to creating a hospitable environment for them to continue plying their trade.
Schultz said the heart of the scammer operation is usually a boiler room; a rented space with desks, telephones and persuasive operators who call thousands of people.
“The general advice for seniors is to ignore deals which sound like a once-in-a lifetime opportunity. Telephone con artists are only after your money. Don’t give it to them,” he said.
So how can you spot a rip-off? Basically, schemes and scams take on various forms, but all share common traits. The best defense is knowledge; understanding the danger signs. If the pitch just doesn’t ring true, then it isn’t.
Don’t give out credit card information over the phone, fall for get rich-quick schemes or send money to anyone who insists on immediate payment or up-front fees.
Remember that credit card companies already know your sensitive information, and do not need to ask for it. They will in fact have security safeguards you must circumvent to access your card information.
Also, never give out your driver’s licence, bank account or social insurance numbers on the phone. Scam artists can use your personal information to commit identity theft. And if you are asked to call a toll free number, make sure it is in fact “toll free.”
You are encouraged to report suspicious behavior to PhoneBusters, the Canadian Anti-fraud Call Centre, at 1 888 495-8501. It is coordinated by the Ontario Provincial Police Anti-Rackets in partnership with the Royal Canadian Mounted Police and the Competition Bureau of Canada.
You may also call the Competition Bureau, which targets telemarketing and mail scams. To file a complaint, call the Bureau at 1-800-348-5358 or visit their Web site at: www.competitionbureau.gc.ca.
“It’s your phone and it’s your home. If the pressure becomes too intense, then simply hang up,” says Schultz. “Remember, if it sounds too good to be true, it is.”
Posted by Jorg Mardian RHN, CPT 