1. Frauds, Scams, and Slams: Telemarketing Scams and Prize Offer Fraud
Every day consumers lose thousands of dollars to vacation and prize scam operators who call or who send out letters and postcards indicating that someone has “won” a fabulous prize’s or a wonderful vacation to an “exotic” place. The Federal Trade Commission receives about 10,000 complaints per year from consumers who get offers of prizes, gifts, or sweepstake promotions. Sometimes, in order to claim the ”fabulous” prize-gift- trip etc, the consumer must buy something, pay a fee, pay shipping or pay taxes. Generally the prize is worthless and the trip may turn out to be a one-night stay in a rundown motel in a seedy part of town. These deals are very often frauds and the only ones to gain are the promoters.
Presented by:
Karen Lynn Poff
Senior Extension Agent,
Family and Consumer Sciences

2. Be Cautious About Telephone Sales Pitches
“Please put me on your
company’s ‘DO NOT
CALL’ list and do not
call me again.”
Be Cautious About Phone Sales Pitches
Smooth talking con artists can make a sales offer sound like a really good deal. But, in fact, telephone con artists are only after your money. Don’t give it to them! If you do not want to receive telemarketing calls, you can request that the company put your name on the “do not call” list. It is illegal for the company to call you again.

3. Why Older People are Often Targeted
May Be More Trusting
More Likely to Be At Home
May Be Lonely
May Not Want to Hang Up
May Not Think Fraud Could Happen to Them
May Be Easily Intimidated By Smooth Talking Callers
May Be Embarrassed to Report Fraud
Why Older People are Often Targeted—Anyone can be taken in by telemarketing fraud, but older people are three times more likely to become a victim.
Older people tend to be more trusting, easily intimidated, and generally polite to strangers
Telemarketers like to reach someone who may be lonely or isolated and willing to listen to their sales talk
Telemarketer sales people have an answer to everything, so it’s hard to get off the phone and most elderly people don’t want to be rude
Seniors mistakenly believe that fraud will not happen to them
If swindled, they are too embarrassed to admit it or to report it
Telemarketer scam operators are very skilled liars
It’s hard to know whether a sales pitch is legitimate, and con artists can sound very believable
Con artists often misrepresent themselves as being with a utility company, a bank, police, or some person of authority
 Anyone, not just older people can be a victim of a telemarketing scam. Most victims are well educated and likely to be affluent and active in their communities, and you can be sure that the con artist will know more about you than you do about them.

4. How Can You Avoid Fraudulent Offers?
Remember That Anyone
Can Be Swindled
Hang Up
Rely on an Answering Machine, Let Them Leave a Message
Don’t Buy Unless You Made the Call
Ask for Written Information
Ask for the Telemarketer’s Name, Address, and Phone Number
Hang up immediately if someone tells you that you have won a prize but in order to claim it you must pay shipping, postage and handling, tax or that you must make a purchase.
Rely on your caller identification and answering machine; let the caller leave a message. Do not return a call to 900 numbers or to an 809 prefix. Not all prefixes that begin with 8 are toll free.
Never buy anything over the phone unless you initiated the call and you know that you are dealing with a reputable mail order company
Ask the caller to send written information explaining the offer, and then read the materials carefully. If the offer was a scam most likely you will never receive any materials.
Be sure to get the Telemarketer’s name, address and telephone number

5. How Can You Avoid Fraudulent Offers?
Never Make a Quick Decision
Be Cautious About Answering Surveys
Throw Away Solicitations Saying You Have “Won a Prize”
Report Suspicious Calls
to the Authorities
Never make a decision to buy on the spot; give yourself 24 hours to think about it. Reputable companies won’t use high-pressure tactics to try to force you into making an immediate decision.
Be cautious about callers taking a survey; they may be fishing for personal information or to learn when you are likely to be at home.
Don’t fill out mail order solicitations that say you have won a prize. Most likely this is a ploy to get names to call for future bogus offers.
Remove your name and address from the telephone book and city directories.
Report suspicious calls to local police and to the State Attorney General. To find the telephone number, look in your local telephone directory or contact the National Association of Attorneys General website: (

6. How Can You Avoid Fraudulent Offers?
Add Your Phone to the National “Do Not Call” Registry:
CALL:
Make the Call From the Phone You Want to Register
Remember to Renew Your Registration After 5 Years
You Can Also Register at:
Add your phone to the national “Do Not Call” registry.
Take advantage of the Opt-Out-Option with people that you do business with such as credit card companies, gas company credit cards, banks, and telephone companies. Request that your name and personal information be removed from lists shared or sold. Call individual companies to get the Opt-Out mailing address.
Write to the Direct Marketing Association Telephone Preference Service and get on their no-call list.
Direct Marketing Association,
Telephone Preference Service
PO. Box 9014
Farmingdale, NY

7. Tip-Offs to Phone Fraud
You Must Act Now
You Have “Won” To Claim Your Prize Send Money for Taxes or Shipping
To Update Account Information Just Provide Your Social Security Number, Bank Account Number, Credit Card Number, etc. (Or Other Personal Information)
Tips -Offs to Phone Fraud
The smooth talking con artists will often say something like:
Telemarketers may promise a free gift, prize, vacation or the investment of a lifetime, but the offer is only good if the victim “acts right away” and it can sound like a great deal.
An offer of magazines at very low prices. The caller may say I can process your order now, if you will give me your card number.
You must send money, give a credit card or bank account number, your birth date, your mother’s maiden name, or someone will be by to pick up your check.
You’ve won a “free” gift vacation, or prize but you must pay the postage and handling charges.

8. More Tip-Offs to Phone Fraud
Someone Will Be By to Pick Up Your Money
Send Money By Wire or Courier
You Don’t Need to Check Our References
You Can’t Afford to Miss This “High-Profit/No-Risk” Offer.
You don’t need to check out the company with anyone including family, lawyer, accountant, local Better Business Bureau or consumer protection agency.
You don’t need any written information about their company or their references.
You can’t afford to miss this “high-profit, no-risk” offer.
If you hear these lines or something similar just say NO and hang up.

9. How Do Fraudulent Telemarketers Get Your Telephone Number?
Telephone Directory
Mailing Lists
Sucker Lists
How Do Fraudulent Telemarketers Get Your Telephone Number?
Telephone directory
Mailing lists
“Sucker lists” a directory of consumers who have already lost money to fraudulent prize promotions or merchandise sales. Sucker lists include names, addresses, and phone numbers, even how much money was spent on telemarketing scams. Scam operators buy and sell “sucker lists” on the assumption that consumers who have been deceived once will be easy prey for additional scams.

10. Be Careful What You Sign Up For
Sweepstakes and Drawings
Community Events
Shopping Malls
Don’t Sign Up for Contests or Sweepstakes
If you have ever signed up for contest or sweepstakes drawing at a public event, you more than likely received many additional unsolicited promotions by mail, or from telemarketers. Promoters take your information and sell it to advertisers or other scam operators. Some unscrupulous con artists disguise their scheme to be confused with a legitimate offer. The name may be very similar to that of a promoter offering an honest prize promotion. For too many people, especially older folks, fall for these fraudulent offers and get scammed in the process.

11. Federal Telemarketing Sales Rule
Covers Most Types of Telemarketing
Illegal to Call If You’ve Asked Them Not To
Illegal to Call Before a.m. or After 9 p.m.
May Not Misrepresent Any Facts or the Nature or Value of Prizes
Must Tell You If the Call is a Sales Call and What Company or Organization They Represent
The Federal Telemarketing Sales requires telemarketers to make specific disclosures of material information; prohibits misrepresentations; limits the hours that telemarketers may call consumers; prohibits calls to a consumer who has asked not to be called again; and sets payment restrictions for the sale of certain goods and services. The Act also authorizes state attorneys general to enforce the Rule in federal court.

12. Prize Offer Fraud Claims You Have “Won” a Fabulous Prize
But You Need to Read the Fine Print
Prize Offers
People like to get gifts or win prizes. More than half of all Americans enter some type of sweepstakes or contest each year. Many of these operations are fraudulent schemes to get your money. Every day consumers lose thousands of dollars to scam operators who call or who out letters and postcards indicating they have “won” a fabulous prize. If you receive one of these solicitations,carefully read the fine print.In most cases, you will find that you actually haven’t won yet. You and one of a few other “lucky” people (perhaps thousands of others) have been “selected” to enter in the final stages of the contest or drawing. The Federal Trade Commission receives about 10,000 complaints per year from consumers who get offers of prizes, gifts, or sweepstake promotions.
Sweepstake packets can be confusing. Usually they instruct the consumer to place stickers on different pieces of information that is sandwiched in with allsorts of advertised products for sale Often times, consumers are led to believe that if they buy advertised products or magazine subscriptions the chances of winning the “big” prize increases.

13. Written Sweepstakes Solicitations
Letters and Postcards May Announce You “Won”
Prizes are Worthless
May Ask You to Send Money or Buy Something
Written Sweepstakes Solicitations
Sweepstakes promotions often arrive in the mail either in a letter or on a postcard. In order to win a prize, the consumer must respond by mail or phone to enter the contest. Some scams operators will notify you (and millions of others) that you are a winner in a sweepstakes or contest and may win a prize of $10,000, a vacation for two to Hawaii, or a new car. The catch is, that in order to claim the ”fabulous” prize-gift- trip etc, you must buy something or pay fees such as shipping or taxes.
Other times when scam operators promise a ‘big’ or valuable ‘prize’ it is just a ploy to get consumers to send money, buy over priced or worthless merchandise, or to contribute to bogus charities. Most often the products are falsely described as being of great value. People who fall for these schemes may never receive the prize. If they do get a prize or gift it is generally worthless. Sometimes the prizes are ridiculous as well as worthless, the money being a pack of fake bills; the trip is a one-night stay in motel in a rundown, seedy part of town; the all terrain vehicle (ATV) may be a lounge chair with wheels or a diamond ring may turn out to be a commercial diamond about the size of a pin head and worth less than a dollar.
 These deals are frauds and the only one to gain is the promoter. Generally, when they get your money or credit card number to “cover the expenses”, you never see the prize and the promoters move on with no forwarding address or telephone number. When you get your credit card billing statement there may be lots of unauthorized charges.   

14. Telemarketer Solicitations
Beware of Needing to Claim a Prize in 48 Hours
Telemarketer Solicitations
Older people are at particular risk of being called with “the good news” about a sweepstakes or prize contest. Sometimes the con artists will make an initial contact by a “cold call”. Sometimes the consumer initiates the call in response to a card or letter received in the mail. These postcards give a number to call to claim the prize already have “won”. The consumer must call within 48 hours, or some other short time period, to claim the prize. Generally, the promoter says that you must pay a fee or buy something in order to claim your prize. The con artists wants you to act quickly so that you don’t have time to think it over and perhaps back out. Once they get the money, of course the prize never arrives, and the money is gone and so are they.

15. Legitimate Promoters Reputable Marketers or Organizations
Legitimate Contests Never Charge
You Win By Chance
Winners Do Not Have to Pay Fees or Buy Anything
Legitimate Promoters
Not all contests, sweepstake offers, or vacation offers, or prize promotions are fraudulent. Many are legitimate offers run by reputable marketers or organizations. These operations are used to promote products and services. Some people are actually “lucky” and win many dollars, sometimes millions of dollars. Legitimate operators will select winners in a contest or drawing simply by chance. Winners do not pay any fees for shipping handling, nor do they need to buy anything. They NEVER pay for taxes. The winner of a big prize or pot of money is responsible for reporting and paying taxes. In fraudulent scams the “winner” almost always has to pay something or buy something.

16. Virginia Prizes and Gifts Act :
If Told You Have Won--You Must Be Given Your Prize or Gift Within 10 Days—No Obligation
Prize Notice Must Include Retail Value of Prizes, Odds of Winning, Number of Prizes, Conditions for Winning
Under the Virginia Prizes and Gifts Act, if you are told that you have won a prize or gift, you do not have to submit to a sales pitch or pay any money in order to receive your prize or gift. You must be given your prize or gift within ten days, without any obligation. If you receive a notice that you are eligible to win or receive a prize, Virginia law requires that you be told what the prize is worth. Your prize notification is also required to contain information that reveals the retail value of each prize, the odds of winning each prize, the exact number of prizes to be awarded and what conditions must be met to receive the prize. Shipping charges for the gift or prize cannot exceed the cost of postage or delivery service, and the handling charges cannot exceed the lesser of the cost of handling or $5.

17. Virginia Prizes and Gifts Act :
Cost of Pay-Per-Call Must Be Disclosed
Shipping Charges May Not Exceed Cost of Delivery
Handling May Not Exceed $5
No Purchase is Necessary
Do not pay to collect sweepstakes winnings. Legitimate sweepstakes do not require you to pay “insurance,” “taxes” or “shipping and handling charges” to collect your prize.
Hold on to your money. Do not be pressured to wire money or send it by overnight delivery. Con artists recommend these services so they can get your money before you realize you have been cheated.
Look-alikes are not the real thing. Disreputable companies sometimes use a variation of an official or nationally recognized name to try to confuse you. Insurance companies, including Lloyd’s, do not insure delivery of sweepstakes winnings.
Phone numbers can deceive. New technology can make incoming calls look as if they are coming from Washington, DC, or your own community.

18. Federal Deceptive Mail Prevention and Enforcement Act:
Similar to the Virginia Act
Promotions May Not Claim You’re a Winner Unless You’ve Really Won
No Purchase is Necessary
Fake Checks Must State They Have No Cash Value
Cannot Imply Federal Government Endorsement
Deceptive Mail Prevention and Enforcement Act
This law protects consumers from fraudulent sweepstake promotions sent through the U. S. Mail. This law expressly prohibits the following.
Claims implying that you are a winner, unless you have actually won a prize
Requirement that you buy something in order to enter the contest or receive other sweepstakes mailings
Mailing fake checks that don’t clearly state “non-negotiable” and have “no cash value”
Seals, names, titles, or terms that imply a connection with or an endorsement by the federal government
The Deceptive Mail prevention and Enforcement Act requires companies that use direct mail to keep a “do not mail” list for consumers who call or write and request their name be removed from the mailing list. Attention Caregivers! This law gives caregivers the right to have the names of loved ones under their care removed from the mailing list of solicitors.

19. Federal Deceptive Mail Prevention and Enforcement Act:
Skill Based Contests Are Treated Differently
Not Based on Chance to Win
May Include Games, Puzzles, or Quizzes
Can Legally Require a Fee
Skill contests
Skill contests award prizes based on skills, knowledge or talent, not on chance. The consumer plays a game, writes a jingle, completes a puzzle or some other activity to earn a prize. In a skills contest, the contestants may be required to buy something or make a donation to enter the contest. However, consumers beware! You may be scammed. In a fraudulent skills contest, the consumer is lured into playing a game where the initial questions or puzzles are easy. Almost anyone can do them correctly. Then the contestant is notified that he/she is tied for first place, and in order to break the tie an additional fee is required to play the next round of the contest. Then the questions or games get harder and the entry fees become higher. Sometimes the games or puzzles are not solvable. Contestants rarely receive anything for their money or effort.

20. Federal Deceptive Mail Prevention and Enforcement Act:
Promotions Must Tell You:
Terms and Conditions of the Contest
How Many Rounds Must Be Completed to Win
When the Winner Will Be Determined
Name and Address of the Sponsor
What Can Consumers do to Protect Against Fraudulent Skills Contest Promoters?
Skills contests come under the jurisdiction of the Deceptive Mail Prevention and Enforcement Act. This law requires promoters or sponsors to clearly inform contestants of the following rules.
Terms and conditions of the contest
How many rounds of the contest must be completed or achieved to win the grand prize
The time frame in which the winner will be determined
The name of the contest sponsor
The address of the sponsor so the consumer may request that their name be taken off the mailing list

21. How To Protect Yourself
Federal Trade Commission Advice:
Just Say No and Ask For Your Name to Be Put on the Company’s DO NOT CALL List
Pay No Fees and Buy Nothing
Pay No Shipping or Taxes
Be Suspicious of Bulk-Mail “Winners”
Never Send Money Overnight or By Courier
How to Protect Yourself
When you receive a letter or a telephone call with “it’s your lucky day”, consider the following recommendations by the Federal Trade Commission before you act further.
Remember:
Just say ‘No’ and request that your name be removed from the mailing list. Telemarketers must keep a “do not call” list of consumers who have requested not to be called again. Violators are subject to a hefty fine.
Legitimate sweepstakes do not require payment of a fee or a purchase to enter, or to increase chances of winning.
Winners do not need to pay taxes or shipping and handling charges to get the prize. If you have to pay, it isn’t a prize.
Honest sponsors prominently identify themselves and give their address or a toll-free telephone number so that you can ask questions or ask that your name be removed from the mailing list. Fraudulent operators are vague about their identity and provide no contact information.
Bona fide offers clearly state the terms and conditions in plain English. Rules, entry procedures, and the odds of winning will be clearly stated in the promotional materials of in the phone call
If you receive a bulk mail notice that you have won a “big” prize, be suspicious that it is a scam.
The scam operator may ask you to send money by overnight delivery or courier to enter a contest or to claim a prize. Beware, this is a favorite ploy by con artist. They will take your money and you will not likely hear from them again.

22. How To Protect Yourself
Remember—You Can’t “Win” a Contest You Didn’t Enter
Read the “Fine Print”
Beware—Not All “800” Numbers Are Toll-Free
Never Give Bank Account or Credit Card Information to a Promoter
Check With the Better Business Bureau for Previous Complaints
Be suspicious if you get a call saying that you have won a “big” prize in a contest and you don’t remember entering a contest
It is important to read any written solicitation (Junk Mail) you receive very carefully. Pay particular attention to the small print. Why? Because some time in the past, you may have received a telephone call offering a three months free trial offer or subscription, and you may have declined or hung up. If you read the detail closely, you may learn that your credit card will be charged for a subscription or a service. Then you must go to the trouble to call your credit card company and refuse the item.
If you agree to attend a sales meeting with the promise that you will get an expensive gift, you will likely be subjected to a high-pressure salesperson. (Timeshare offers generally work this way)
Signing up for contests or sweepstakes at public events, through publications, or on the Web subjects you to the risk of unscrupulous prize promotion tactics. Additionally, the information you provide may be sold to other scam promoters or marketers, and you will get a landslide of junk mail or telemarketing calls.
Some contest con artists give you a toll-free 800 number that directs you to dial a pay-per-call “900” number. “900” numbers are sometimes international calls and can be very expensive.
Giving out your bank account number or credit card number over the telephone for a sweepstakes promotion is very risky. Don’t do it!
Before you enter a sweepstakes offer, check with the local Better Business Bureau and your local police department to learn if any complaint have been reported. Keep in mind that unscrupulous operators do no stay in one place very long so that no track record can be established.

23. Do You Want to Reduce Your Junk Mail and E-mail?
“Opt-Out” of Pre-Approved Credit Card Offers:
CALL:
Remove Your Name From Credit Bureau Marketing Lists
Register with the Direct Marketing Association
Do You Want to Stop Getting Junk Mail or Telemarketing Calls?
“OPT-OUT” of pre-approved credit offers by calling
Contact the Direct Marketing Association and request that your name be placed on a “do not call” and do no mail” and do not list. Addresses to contact Direct Marketing Association follows
Mail lists: Direct Marketing Association,
Mail Preference Service,
PO Box 9008
Farmingdale, NY
Telemarketing list: Direct Marketing Association,
Telephone Preference Service,
PO Box 9014
Farmingdale, NY
 To opt-out of unsolicited

24. Do You Suspect an Older Adult is Being Victimized by Telemarketing Scams?
Signs to Look For:
Gets Many Telemarketing Calls Offering Prizes and Vacations
Owns Many Inexpensive or Low-Quality Items (Jewelry, Gadgets, etc.)
Writes Many Small or Escalating Checks to Out of State Companies
Is Secretive About Phone Calls
Do You Suspect an Older Adult is Being Victimized by Telemarketing Scams?
Look for the following signs.
The older adult receives numerous pieces of junk mail, especially letters about contests, “free vacations” sweepstakes, free prizes etc.
The person gets many telemarketing calls offering valuable awards, opportunities to make extra money while retired, or solicitations for charitable organizations.
The person’s home contains many inexpensive small items, such as pens, watches, cheap jewelry, gadgets, lots of different brands of cosmetics, or stacks of magazines.
The person’s bank statement lists many small or escalating withdrawals to out of state companies.
The older person is secretive about phone calls they receive.
Private couriers come to pick up money or the person wires money.
The person can’t seem to make ends meet and can’t pay for food and utilities.

25. As a Caregiver What Actions Should You Take?
Avoid Making the Older Person Feel Stupid or Foolish
Remember That Anyone Can Become a Victim
Avoid Threatening to Take Away Financial or Physical Independence (Which May Cause the Person to Become Secretive About Their Activities)
As a Caregiver What Actions Should You Take?
Don’t--call the person stupid or foolish, anyone can be telephone scammed.
Don’t--Threaten to take away the person’s financial or physical independences because they will likely become secretive about their activities and may come to resent you as a caregiver.

26. As a Caregiver What Actions Should You Take?
Help the Older Person Report the Fraud to Appropriate Agencies
Emphasize That Con Artists Are Criminals
Help the Person Learn How to Detect Phone Scams
Encourage Them to “Hang Up”
Be Available to Help Them Say No
Do--help the older person report the fraud to appropriate agencies.
Do--emphasize that con artists are criminals.
Do--Help the person learn how to detect fraudulent telephone scams.
Do--encourage them to just “hang up”.

27. Many Agencies and Organizations Are Available to Help
Local and State:
Virginia Office of Consumer Affairs
Office of the Attorney General
State Corporation Commission
Better Business Bureau
Local Law Enforcement
Federal:
Federal Trade Commission
Department of Commerce Office of Consumer Affairs
Securities and Exchange Commission
U. S. Postal Service
There are many agencies at the local, state, and federal level that can help you with telemarketing and prize offer fraud issues. If you don’t know who to call, contact your family and consumer sciences agent and he or she will connect you with the correct organization for your issue.

28. Phone: 540/459-6140 E-mail: kpoff@vt.edu
Frauds, Scams, and Slams: Telemarketing Scams and Prize Offer Fraud
This program is available as a presentation to community groups. Contact Karen Poff for more information.
Phone: 540/
Presented By:
Karen Lynn Poff, Senior Extension Agent
Family and Consumer Sciences
Adapted From a Presentation By: Jan Park, Ph.D., Extension Specialist, Oklahoma Cooperative Extension and information from the Federal Trade Commission and the Virginia Attorney General’s Office.