Telemarketing Scams
Recognize and Report Phone Fraud (FTC Brochure)
While there are many legitimate businesses that use the telephone to sell their products, there are also many unscrupulous businesses that use telemarketing to swindle consumers out of millions of dollars every year. Dishonest telemarketers are often very pushy and will say anything to get your money.
The Federal Trade Commission (FTC) created the Do Not Call Registry that allows you to stop getting telemarketing calls at home. You can register either online at www.donotcall.gov or toll free from the number you wish to register at 1.888.382.1222 (TTY 1.866.290.4236). Registration is free.
Arizona’s Telephone Solicitations Statute requires telemarketers to make certain disclosures and prohibits certain misrepresentations. The statute requires most telemarketers to file a registration statement with the Secretary of State and a bond with the State Treasurer’s Office. There are exceptions to the statute. Please visit the Secretary of State’s Web site at www.azsos.gov for those exceptions. The law also requires all telemarketing companies to tell their customers, both orally and in writing, that they have the right to cancel their order within three days after receiving the merchandise or any gift, bonus, prize or award.
Many credit card companies will issue a credit to your account if the telemarketing company is not legitimate. It is important to contact your credit card company as soon as you realize there is a problem, as they will issue a credit only for a limited time.
Unscrupulous telemarketers frequently use the following tactics:
- A high-pressure sales approach, urging you to "act now" or the offer won't be available later.
- Offer you something that sounds too good to be true, such as a "no-risk investment."
- Ask for your credit card or checking account numbers or other personal financial information.
- Tell you that you have won a "prize" that you have to pay taxes or shipping for in advance.
- Ask you to send money right away, through a wire service or overnight delivery. Fraudulent telemarketers will sometimes offer to pick up the money from your home.
WHAT YOU CAN DO TO AVOID BEING SCAMMED:
- Keep your financial information to yourself. Never give out credit card, checking or savings account information to anyone who calls you, as it is not difficult for someone with this data to draft money from your account.
- Ask the sales agent to send you information about their product or services. Legitimate companies are often happy to mail you a pamphlet or brochure about what they sell.
- Place your name on the national Do Not Call List.
- Remember, if it sounds too good to be true, it probably is.
For more information, or if you believe you have been a victim of fraud, please contact the Attorney General's Office in Phoenix at 602.542.5763; in Tucson at 520.628.6504; or outside the Phoenix and Tucson metro areas at 1.800.352.8431. Consumers can also file complaints online by visiting the Attorney General's Web site at www.azag.gov.