Telemarketing Fraud

What is Fraudulent Telemarketing?

• Using the phone to obtain payment for a non-existent or misrepresented product, service or charity donation.
• Using the phone to offer a prize that must be paid for.
• Using the phone to obtain personal credit card or banking information.

Common Signs of Telemarketing Fraud:

• The offer sounds too good to be true. 
• Payment is requested to pay for taxes, delivery, or processing in order to receive a prize. 
• Payments are requested in cash.
• The caller asks for personal banking and/or credit card information. 
• The offer is for a limited time only and pressure is exerted to make an immediate purchase decision. 
• The caller claims to be a person in authority, such as a banking or government official. 
• The caller is more excited than you are and is overly friendly.  

Some Common Telemarketing Scams:

The Prize Scam- The caller states that you have won a prize but you first must make a payment to cover delivery, taxes or other processing charges. If you are a legitimate prize winner, no payment is required to receive the prize. Do not send any money in advance.

The Vacation Scam-The caller offers huge savings or free travel and/or accommodations to a vacation destination. Accepting one of these offers will result in a vacation price that is equivalent to the original cost and possibly more than a comparable package through a legitimate travel agent. Do not purchase a vacation as a result of a telemarketing solicitation.

The Charity Scam-The caller claims to be soliciting for what appears to be a worthy charitable cause. The charity is actually non-existent, but the name used may sound similar to a legitimate well-known charity. Never send money to an unknown charity. The addresses of legitimate charity organizations can be confirmed and any donations made to these charities should be delivered to them directly.

Consult the Canada Revenue Agency web site for more information on legitimate charities.

To Prevent Telemarketing Fraud:

• Be cautious and check out the caller. Ask for written information, a call back number, address and references. Legitimate telemarketers will have nothing to hide. 
• Take time to think over the offer and discuss it with someone who is trusted. 
• Do not give out personal banking or credit card information unless you are certain that the organization is legitimate. 
• Do not send any money until you receive what you have been promised.
• If there are doubts about the caller, hang up the phone.  

Warning Signs:

Watch for these signs which may indicate that a friend or relative has been targeted by fraudulent telemarketers:

• Requests for cash or loans. 
• A sudden inability to pay regular bills. 
• Financial records that show cheques or withdrawals made to unfamiliar organizations. 
• Secretive behaviour regarding phone calls. 
• An increase in the amount of mail received offering "too good to be true" offers. 
• Numerous solicitation-type phone calls being received.

Reporting Telemarketing Fraud:

You should also make a report with the Canadian Anti-Fraud Centre which is operated by the Competition Bureau, RCMP and OPP.  The Canadian Anti-Fraud Centre tracks trends in fraud nation wide and is the national call centre for mass marketing fraud and identity theft. You should also contact the Waterloo Regional Police Service to report telemarketing frauds.