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It would be nice if legitimate, even beneficial, telemarketing calls could be easily identified from the unsolicited, fraudulent ones. From customer loyalty cards to databases filled with our online searching and buying patterns, our personal information is available everywhere, to everyone, including fake telemarketers. Perpetrators of fake telemarketing calls can create personalized pitches making it hard to recognize a fraudulent call. Often, seniors can be targets because it’s assumed they have the finances, and scammers are keen on taking advantage of the potential vulnerabilities of elderly victims. Seniors are also a favorite target because they make over-the-phone purchases at a rate of twice the national average. [1] Awareness is your first line of defense. If it seems too good to be true, it probably is.
Here’s an overview of a few of types of phone scams and tips on how to avoid becoming a victim of fraud.
Some common phone scams
While the following list isn’t inclusive of all phone scams, these are some of the most common. Familiarize yourself with each to help spot a scam playing out on the other end of a phone call.
The Pigeon Drop
Criminals use the lure of stating a large amount of money was discovered bearing your name. The catch is the con artist asks you to pay a fee or “good faith” payment to claim the non-existent money.
Relative in Need
This scam plays on a senior’s concern for a loved one. The con person claims that a family member is in the hospital or in jail. The criminal requests money to help the family member.
Car warranty
This scam occurs often through robocalls and the scammer offers an extended automobile warranty. A caller, or prerecorded voice, informs the vehicle owner that their automobile’s warranty has expired, or soon will. A scare tactic is often used warning of the problems they can face without a warranty. Another detail that usually makes this type of scam appear legitimate is the amount of detail the caller has about the vehicle. Don’t be deceived. Data collection companies could provide access to motor vehicle records online. [2] Scammers do all this for one intended goal, to gain your personal information and your money. This “warranty” is found to be useless for you.
Can you hear me?
A caller or robocall will ask “can you hear me?” The scam call ends after capturing a recording of the “yes” response. The scammer now has a voice signature to authorize unwanted charges on items like stolen credit cards.
Is this Mary?
This tactic is similar to the “Can you hear me?” scam. Once the intended victim answers the phone, the caller or robocall will ask “Is this (your name)?” The purpose of the call is to elicit the response “yes.” The dangers of the “Can you hear me?” and “Is this (your name?)” scams are the same.
Charity
This is one of the more common telemarketing scams, in which the scammer poses as a charity. The “telemarketer” has no connection to the charity they’re claiming to represent. In other instances, criminals represent fake charities. These types of calls typically occur after a natural disaster. [3]
Do you know who this is?
The following story illustrates how a version of the relative-in-need scam works. Although the characters and events in this story are fictional, the circumstances are all too real.
Margaret is a proud grandmother of 14 grandchildren. Not all her grandchildren live in the same city, so Margaret is especially happy to receive their occasional phone calls. With so many grandchildren, it’s not always easy for her to recognize the voices on the other end of the phone. So, when she received an unexpected call one day from a young lady who said, “Hi Grandma! Do you know who this is?” Margaret guessed it was her sixteen-year-old granddaughter. “Is it you Cynthia?” she replied. The scammer answered yes of course and proceeded to give Margaret a sob story about the trouble she was in and how she urgently needed money. Margaret loves her grandchildren and would always do whatever she can to help them. Without hesitating, she agreed to send the imposter money, a total of $5,000 USD. The preferred payment methods of criminals in this type of scam are money transfers or gift cards.
In this case, the scammer is pretending to be the family member. It’s always better to contact who the caller is claiming to be directly. If she’d done this, Margaret would have been able to verify that Cynthia was not in a real emergency.
Tips to avoid telemarketing scams
Here are seven easy tips to help protect yourself from being scammed:
- Check a business’s background and reputation through the Better Business Bureau.
- Don’t give into pressure to make a quick decision during a phone call.
- Never give out personal information over the phone when receiving unsolicited calls, especially from unknown callers, or if you are at all suspicious.
- Hang up on unsolicited robocalls and don’t follow the automated prompts.
- When, after answering the phone, a robocall or a person asks, “Is this (your name)?” or “can you hear me?” Do not reply “yes.” Train yourself to first ask who is calling, and/or reply with “This is she/he” and “I can hear you.” Do not say “yes.”
- Block telemarketing calls by registering your number on the Do Not Call List.
- Use phone apps, or built-in capability from your mobile phone carrier, to identify spam calls. And if you get a spam call, block the number.
If you think a call might really be from a legit caller, find their phone number from a reliable source (i.e., billing statement, website, back of credit card etc.) and call that number. Same is the case for the “relative in need” scam. Call the relative claiming to need help, using a phone number that is real, to confirm whether the story is true.
From promises of a car warranty, to a too-good-to-be true offer of found money, scammers are creative, don’t let your emotions dictate your actions. By implementing these best practices, you can better protect yourself and your assets against scammers. If you are suspicious a call may be a scam, report it to state, local, or federal law enforcement agencies. [4]
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