Businesses who operates legit telemarketing are losing large sum of revenues to scams every year. What is worse is that legitimate telemarketers bear the brunt as people are becoming more and more skeptic and resistant to trust any telemarketing calls in the fear that it is fraud.
Scammers exploit their victims through baiting them with exaggerated prizes, products or services. Due to the prevalence of these too good to be true calls, it is important to be well-informed of the different types of telemarketing scams and see the warning signs that heads to this crime.
These are the following common types of telemarketing scams as enumerated by the Federal Trade Commission (or FTC).
- Travel packages. The suppose promoters alert you that you have been chosen to avail a “free” or “low-cost” trip to somewhere. Turns out, this end up having a couple of pricey hidden charges. Incredulously, even after you paid, this trip doesn’t happen.
- Credit and loans. This type of scam pertains to the ploy involving advance fee loans, payday loans, credit card protection and low credit card interest rates. Usually takes place when the economy is suffering a setback.
- Sham or exaggerated business and investment opportunities. One of the telemarketing scams that made millions of dollars. Victims are offered low risk but high ROI. Scammers depend on the fact that most people do not research on the complexity of business and investments and pressure them to commit right there and then.
- Charitable causes. Scammers urge you to donate right away for a recent disaster relief effort.
- High-stakes foreign lotteries. You can say that this is the most obvious fraud since there is a prohibition of cross-border sale or purchase of lottery tickets stipulated in the law. Victims are notified to have won a large sum of money in a foreign lottery which they can only claim if they pay the processing fees and taxes. Where is that ticket anyway?
- Extended car warranties. This time, scammers pretend to be a car dealer or manufacturer representatives. They make it a point to know profiles about your car such as what kind of car it is or when and where did you buy it so they can persuade you to sign up on overpriced extended car warranty plans.
- “Free” trial offers. Some companies suggest that you sign up for the free trials of their product (“products” in some cases) and when you sign up, things becomes shady because they start charging you until you cancel.