For Immediate Release
	August 6, 2002
	Contact: Carol McKay
	202-835-3323 ext.114
	media@nclnet.org

Credit Card Scams Bump Prizes and Sweepstakes as #1 Telemarketing Fraud

Fraud.org Launches Elder Fraud Campaign, New Telemarketing Tips to
Protect Consumers during National Fraud Awareness Week

Washington D.C. – In the first six months of 2002, consumers reported losing more than $1 million to telemarketing scams, according to complaints made to the National Consumers League’s National Fraud Information Center (NFIC) program.  The average loss was $822.

            Phony credit cards offers have become the #1 telemarketing fraud, accounting for more than a quarter of all telemarketing fraud reported to NFIC and outpacing prizes and sweepstakes scams, which usually top the list. Targeting consumers with financial problems, these crooks typically ask for payment upfront by arranging to debit victims’ bank accounts. “They guarantee you a credit card, even if you have a bad credit history,” says NFIC Director Susan Grant. “But the only real guarantee is that you’ll lose your money.”  Most legitimate credit card issuers don’t charge in advance, and if there is a fee to get a card, it is usually very small, not the hundreds of dollars that con artists demand.

Older consumers are particularly targeted by telemarketing cons. Twenty-six percent of victims overall were age 60 or older, but in some categories, that age group was even higher; for example, 61 percent of prize and sweepstakes victims. To help seniors, their families, and others who work with older people, NCL has updated the advice offered on www.fraud.org/elderfraud. NCL has also revised and expanded the telemarketing fraud tips on the www.fraud.org Web site. The “They Can’t Hang Up” brochure in the elder fraud section, and the telemarketing tips on fraud.org, are now offered in both English and Spanish.    

The best defense against telemarketing scams is to recognize the danger signs and avoid being ripped off, says NCL, which is a sponsor of National Fraud Awareness Week, August 4-10, 2002. Consumers can report suspected telemarketing to NFIC by calling 800-876-7060 or using the complaint form on the Web site.  NCL transmits that information to federal, state, and local law enforcement agencies.

For more information about National Fraud Awareness Week, go to www.fraudweek.com.

Top Ten Telemarketing Frauds

1)      Credit Card Offers

2)      Work-at-Home Plans

3)      Prizes/Sweepstakes

4)      Advance Fee Loans

5)      Magazine Sales

6)      Buyers Clubs

7)      Nigerian Money Offers

8)      Telephone Slamming

9)      Travel/Vacations

10)    Credit Card Loss Protection Plans      

 Protect Yourself from Fraud

·        Check out unfamiliar sellers and charities with your state or local consumer protection agency and the Better Business Bureau;

·        Resist pressure to act immediately or scare tactics;

·        Don’t believe promises of easy ways to win, borrow, or earn money;

·        Only provide your credit card or banking information when you are using that account to make a purchase;

·        Be aware that crooks often ask for payment by wire or courier to get their victims’ money quickly and avoid detection.   

The National Consumers League, founded in 1899, is America's pioneer consumer organization. Our mission is to identify, protect, represent, and advance the economic and social interests of consumers and workers. NCL is a private, nonprofit membership organization. For more information, visit www.nclnet.org.

NCL runs the National Fraud Information Center, which was created in 1992, and the Internet Fraud Watch, which was created in 1996, operating in tandem with the NFIC. Consumers from across the United States and Canada can call 800- 876-7060 fill out the online form to file a complaint. NCL staff provides advice and tips on how to spot possible telemarketing or Internet fraud and how to report it. Fraud reports from consumers are sent within minutes to over 200 appropriate law enforcement agencies, including the Federal Trade Commission and state attorneys general. For more information visit www.fraud.org.

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