What is Telemarketing Fraud?
Telemarketing fraud is a term that refers generally to any scheme to defraud in which the persons carrying out the scheme use the telephone as their primary means of communicating with prospective victims and trying to persuade them to send money to the scheme. When it solicits people to buy goods and services, to invest money, or to donate funds to charitable causes, a fraudulent telemarketing fraud operation typically uses numerous false and misleading statements, representations, and promises, for three purposes: (1) To make it appear that the good, service, or charitable cause their telemarketers offer to the public is worth the money that they are asking the consumer to send. Fraudulent telemarketers, by definition, do not want to give consumers fair value for the money they have paid to the telemarketers. Because their object is to maximize their personal profits, even if the consumer suffers substantial financial harm, they will typically adopt one or both of two approaches: to
Telemarketing fraud is fraud perpetrated over the telephone by a person who is trying to trick a victim for financial gain. While many legitimate companies do conduct business by telemarketing programs, there are others out there who exploit the anonymity that telephones offer and seek to cheat people out of money. This can be done by outright theft or by identity theft. There are many telemarketing fraud schemes that are perpetrated on a daily basis, with the end result being the same. The person committing the telemarketing fraud promises a product or service offered at a deal thought too good to be true, in return for a secured form of payment. In some cases, this will be a guaranteed cashier’s check, money order or even cash. In other cases, it may be a check or credit card. The U.S. Federal Bureau of Investigation has noted that there are often similar themes running through multiple telemarketing scams. First, the caller will always try to get you to act right away. Second, the c
” [http://www.usdoj.gov/criminal/fraud/telemarketing/]. 2 May 2000. Abstract: This website describes what constitutes telemarketing fraud, the kinds of schemes being used, what the Department of Justice is doing about it, and what consumers can do. U.S. House of Representatives. “H.R. 3180 ‘Telemarketing Victims Protection Act’.” [http://thomas.loc.gov]. 2 May 2000.Abstract: To amend the Telemarketing and Consumer Fraud and Abuse Prevention Act to authorize the Federal Trade Commission to issue new rules regulating telemarketing firms, and for other purposes. Introduced on October 28, 1999. Referred to the House Committee on Commerce, Subcommittee on Telecommunications, Trade, and Consumer Protection on November 5, 1999. No further action noted. U.S. House of Representatives. “H.R. 612 ‘Protection Against Scams on Seniors Act of 1999’.” [http://thomas.loc.gov]. 2 May 2000.Abstract: To protect the public, especially seniors, against telemarketing fraud, including fraud over the Internet
