Burnsville, Minnesota – July 21, 2016– Scammers
play a large role in the marketplace. However, they are often able to
remain anonymous by requesting payment via avenues that are difficult to
trace. However, a recent amendment to Federal Trade Commission (FTC)
rules now makes it easier for consumers and business owners to identify
shady telemarketing offers. In an effort to inform the public about this
important rule change, Better Business Bureau of Minnesota and North
Dakota ® (BBB) outlines the impact it will have and offers some tips on common phone scams.
The
FTC recently amended the Telemarketing Sales Rule so that it’s now
illegal for telemarketers to ask for payment by cash-to-cash money
transfers – such as those from MoneyGram and Western Union – or PINs
from cash reload cards like MoneyPak and Vanilla Reload. This amendment
also applies to unsigned checks called “remotely created payment
orders,” which are never seen or signed and created when telemarketers
are given bank account information. These changes went into effect on
June 13, 2016.
“The
amended Telemarketing Sales Rule is a boon to consumers and business
owners,” said Dana Badgerow, president and CEO of Better Business Bureau
of Minnesota and North Dakota. “Now, if people are asked to make
payment via these methods over the phone, they’ll know they’re dealing
with someone who is breaking the law - most likely a scammer.”
This amendment aside, consumers are offered many other protections under the Telemarketing Sales Rule, including:
· Calling times are restricted to the hours between 8 a.m. and 9 p.m.
· Telemarketers
must promptly tell you the identity of the seller or charitable
organization and that the call is a sales call or a charitable
solicitation.
· Telemarketers
must disclose all material information about the goods or services they
are offering and the terms of the sale. They are prohibited from lying
about any terms of their offer.
People can put their telephone numbers – including their cellphone number –on the National Do Not Call Registry by visiting donotcall.gov or by calling 888-382-1222. This will stop most telemarketing calls, but not all.
In the experience of BBB, some common phone scams beyond suspect telemarketing schemes include:
o The IRS/Law enforcement scam.
Con artists demanding immediate payment pretend to be calling about
unpaid taxes or outstanding warrants. Neither the IRS nor authorities
make calls like this.
o Sweepstakes scams.
People are told they’ve won large cash prizes and/or a new car, but
need to pay taxes, fees or insurance to collect their winnings. But the
calls are fraudulent and the prizes aren’t real.
o The Tech Support scheme.
‘Helpful technicians,’ sometimes claiming to work for Microsoft, call
consumers and business owners and say something is wrong with their
computer and they can help. However, all they’re seeking is credit card
information. This scam is also perpetrated via pop-up messages that
appear on computer screens.
o The grandparent scam.
Scammers call seniors and pretend to be a loved one – often a
grandchild – outside the country and in distress. This scheme plays on
emotion and has proven very effective.
A
good way to identify a fraudulent telemarketer or phone scam is if the
caller is requesting any of the payment methods or bank account access
outlined above. If you receive such suspect phone calls, you should
hang up and report them at ftc.gov and also at BBB Scam Tracker.
