And The Winner Is ...

By Norley Hall, AARP

There has been much publicity about telemarketing fraud, but it still goes on to the tune of at least $40 billion annually. Surveys by the AARP reveal that over half of telemarketing fraud victims are age 50 or older. 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 are 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.

One thing seniors (or anyone else) can do to protect themselves is to learn how to identify fraudulent sales pitches. Be wary when you receive a phone call that turns out to be a sales pitch. You can't judge if it is fraudulent by the tone of the voice, or how friendly or sincere the person seems. Good salespeople are convincing, and so are crooks. However, you can watch for signs of fraud by following a few good tips. 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 is illegal to do so.
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 are 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.

There are many other signs of fraud that can be watched for. In a future article we will outline more of them. The main thing is to be alert and not to allow yourself to be persuaded by a friendly voice. Check and make sure before parting with any money.