Shopping by telephone is very convenient, and there are many legitimate companies that do business through telemarketing. Unfortunately, the telephone is also used by crooks every day to commit armed robbery against consumers. It's estimated that there are 14,000 illegal telemarketing operations bilking U.S. citizens of at least $40 billion annually. And surveys by the American Association of Retired Persons reveal that over half of telemarketing fraud victims are age 50 or older.

But together we can fight back against telemarketing fraud! The National Consumers League, which operates the NFIC, is committed to helping seniors, their families, and others who work with older people combat this terrible social problem. The key message is that fraudulent telemarketers are criminals.

All consumers, and seniors in particular, need to understand that these aren't just sleazy salespeople trying to make a living -- fraudulent telemarketers are hardened criminals out to take their victims' life savings. They're so good at what they do, they can even persuade people to mortgage their homes in order to claim their sweepstakes winnings or make investments. But all too often there aren't really any sweepstakes, investments or other great deals, just lies.

Older people can protect themselves by knowing how to identify fraudulent sales pitches. Check out the special tips for seniors, information for families, new educational materials, and other features in this section of the NFIC web site. Advice is also available by calling the NFIC's toll-free hotline, 1-800-876-7060, or by posing questions through our web site. Once seniors know the danger signs, they can hang up on fraud.

Fight back by reporting telemarketing fraud through the hotline or NFIC's online reporting form. The NFIC provides consumers' reports to the Federal Trade Commission and other law enforcement agencies so these criminals can be stopped in their tracks and put behind bars, where they belong!

The National Consumers League has developed special materials for seniors, law enforcement agencies, and others who are concerned about telemarketing fraud targeted against older people. Information about the the Elder Fraud Project - including a video, brochure and a report on telemarketing fraud targeting the seniors - is available at this site. Please contact the National Consumers League for prices and ordering information.

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Tips for Seniors

It's sometimes hard to tell if a sales pitch is legitimate or fraudulent. You can't judge it by the tone of someone's voice, or how friendly or sincere the person seems. Good salespeople are convincing, and so are crooks. But it's probably a scam if:

You get a call or postcard from someone telling you you've won a prize and asking for payment to buy something, for processing or administrative fees, for customs, for taxes, or any other reason. Legitimate sweepstakes or prize offers don't ask for payment because it's illegal.

The person says you have to take the offer immediately or you'll miss the opportunity. Legitimate companies don't pressure people to act without time to look into the deal.

The caller refuses to send you written information before you commit to anything. Legitimate companies are always glad to send information about what they're offering.

The caller claims that you can make huge profits in an investment with no risk. All investments are risky and legitimate companies must tell consumers about the possible risks involved.

The caller asks for your social security number. Legitimate companies don't ask for that unless you are applying for credit and they need to check your credit report.

The caller asks for your credit card number, bank account number, or other financial information when you aren't buying anything or paying with those accounts. Legitimate companies only ask for financial information to bill you or debit your account for purchases you've agreed to make.

The company calls you relentlessly or after you've asked not to be called anymore. Legitimate companies will take "no" for an answer and will take you off their calling lists if you ask. Con artists will keep on calling to wear you down or get more money from you.

The company offers to get you a loan, or credit, or a credit card, or to "repair" your bad credit if you pay an up-front fee. Legitimate lenders and credit card issuers do not demand payment in advance, and no one can get bad information removed from a credit file if it is accurate.

The company offers to get back money that you have lost to another fraudulent scheme if you pay an up-front fee. Law enforcement agencies don't ask for payment to try to help consumers get their money back, and it's illegal for a company to ask for advance payment for such services.

Remember, giving money to a fraudulent telemarketer usually means losing it forever. Don't let a criminal break into your home through your telephone line!

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Helping Seniors Targeted for Telemarketing Fraud

How can you tell if an older relative, friend, or client may be a target for telemarketing fraud?

Here are some warning signs:

• The person receives lots of junk mail for contests, "free trips," prizes and sweepstakes;

• The person gets frequent calls from people offering valuable awards, great money-making opportunities, or charitable donations;

• The person has lots of cheap items such as costume jewelry, watches, pens and pencils, small appliances, beauty products, water filters, or other products that he or she either purchased in order to "win" something or received as so-called "valuable prizes;"

• The person has made numerous checks or withdrawals for escalating amounts of money to unfamiliar, out-of-state companies;

• The person begins to act very secretively about phone calls;

• The person is having payments picked up by private courier services or wiring money to companies;

• The person is having sudden problems paying bills, or buying food or other necessities.

Don't:

• Blame the person for being stupid, greedy or foolish. Telemarketing swindlers are good at what they do and take advantage of people's honesty, politeness and optimism;

• Threaten to take away the person's financial or physical independence. This may only make the person secretive and resentful.

Do:

• Help the person assemble the information to report the fraud to the state or local consumer protection agency or to the NFIC;

• Emphasize the criminal nature of telemarketing fraud and help the person learn how to identify it;

• Encourage the person to hang up on telephone solicitations that seem suspicious;

• Have a calm discussion and try to come to an agreement about the best way to handle the person's finances in the future. If he or she seems to be truly incompetent, seek legal advice; Help the person change his or her phone number, if necessary.

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THEY CAN'T HANG UP

Help for Elderly People Targeted by Fraud

Studies by the American Association of Retired Persons show that most elderly fraud victims don't make the connection between illegal telemarketing and criminal activity. They don't associate the voice on the phone with someone who could be trying to steal their money.

Most believe that the caller is a nice young man or woman simply trying to make a living, such as a student working his or her way through college, or an ambitious person trying to set a good sales record at the company. Victims think a fraudulent telemarketer's actions are not crimes, simply hard sells. They may realize that they haven't gotten their money's worth, but they are reluctant to admit that they have been cheated or robbed by illegal telemarketers.
 

• THE FIRST STEP in helping older people who may be targets of fraud is to convince them that the person on the other end of the line could be a crook!

• Once they understand that illegal telemarketing is a serious crime -- punishable by heavy fines and long prison sentences -- they are more likely to hang up and report calls to the authorities.

• Older people may be surprised to know that there are an estimated 14,000 illegal telemarketing operations bilking thousands of victims every day. They rob with phones instead of guns. And they don't care about the pain they cause when they steal an elderly person's life savings. If they are caught, they can be put in jail - where they belong.

Older people are frequent targets of fraudulent telemarketers. They need help because:

• It Is Hard To Tell If A Caller Is Legitimate. - Good salespeople are convincing and so are crooks.

• It Is Hard To Hang Up. - Many people feel that it's impolite to hang up on callers. And swindlers know how to take control of the conversation, either by pretending to be very friendly or by using bullying tactics.

• Senior Citizens Are Targeted Relentlessly. - Some older people get more than 20 calls a day from scam artists -- the same ones trying to wear them down, or ones who know they've been victimized before and think they're vulnerable.

• Seniors Tend To Trust The Caller. - Targets of fraud often don't realize that the person on the phone could be a crook. They give people the benefit of the doubt.

• We All Want To Believe. - Who doesn't want to win a valuable prize or strike it rich on an investment? People want to believe that it's their lucky day, and may react with anger or suspicion when friends or family question their optimism.

It's hard to hang up on people -- especially when the caller sounds so polite and friendly. But people wouldn't let strangers into their homes or accept rides from someone they didn't know. So, they should handle telephone calls from strangers the same way. Elderly Targets of Fraud Need to Know That

• illegal telemarketing is a crime, and that fraudulent telemarketers are criminals;

• the FBI reports that there are an estimated 14,000 illegal telemarketing operations bilking consumers every day;

• as much as $40 billion per year is lost to fraudulent telemarketers;

• you can't tell by the tone of someone's voice if the caller is legitimate;

• legitimate companies don't pressure people into sending money immediately;

• it's illegal for contests or sweepstakes to require payment to enter or claim a prize;

• legitimate marketers are willing to send written information about the products or services they're selling;

• giving money to a fraudulent telemarketer usually means losing it forever;

• reporting suspected telemarketing crime is essential to stop it;

AND THEY NEED TO KNOW they can protect themselves from being targets of fraud by:

• telling the caller that they want to check it out and asking for a number to call back. If the caller refuses to give the number or insists on an immediate decision, it's a "red flag of fraud."

Call the NCL's National Fraud Information Center at (800) 876-7060.

WARNING SIGNS THAT AN ELDERLY PERSON MAY BE A TARGET OF FRAUD

If an older person is:

• receiving lots of junk mail for contests, "free" trips, prizes and sweepstakes,

• getting frequent calls from strangers offering valuable awards or great money-making opportunities, or asking for charitable contributions,

• making repeated and/or large payments to out-of-state companies,

• having payments picked up by private courier services,

• receiving lots of cheap items such as costume jewelry, small appliances, pens and pencils, beauty products, water filters, etc. (often purchased in order to win supposedly valuable prizes, or these were the prizes that they got),

• getting calls from organizations offering to recover money that they have paid to telemarketers, for a fee, then, he or she may be a target of fraud.

Sometimes it's not easy to convince people that telemarketers offering big prizes or no-risk, high yield investment opportunities may be crooks.

FOR MORE HELP!

The National Fraud Information Center, which is run by the National Consumers League, the oldest non-profit consumer organization in the United States, has professional counselors who will let callers know if an opportunity seems to be a typical telemarketing scam. They can make referrals to the appropriate enforcement agencies, and give reassurance to older people who may be targets of fraud that they are not alone.

The center can also advise friends and relatives of older people who are concerned that they might be actual or potential victims of fraud. We have free materials about the different types of telemarketing fraud. And it's easy to reach us at our toll-free number: 1-800-876-7060

NCL also offers a 20-minute video with personal stories told by fraud victims and helpful advice for seniors and their families. NCL has produced a 28-page report outlining the problem of telemarketing fraud against older people and strategies for empowering them to fight back. These are available for a small fee. Contact for prices.

To order, or for more information, call or write: National Consumers League 1701 K Street, N.W., Suite 1200 Washington, D.C. 20006 (202) 835-3323.