Fraudulent Telemarketers Snatching Bank Account Numbers, National Fraud Information Center Stats Show

National Consumers League Offers Advice about Getting Off of Marketing Lists

    WASHINGTON, DC—In 2001 consumers paid for fraudulent telemarketing offers more frequently with bank debits than any other payment method, according to statistics released today by the National Consumers League’s National Fraud Information Center (NFIC). Bank debits are situations in which fraudulent telemarketers obtain consumers’ bank account numbers either by luring consumers into providing them or getting them from another source. Bank debits are particularly high in certain categories among the top ten telemarketing frauds in 2001:  62 percent of consumers paid for bogus credit card offers with bank debits; 50 percent gave out their bank numbers in the increasingly popular age-old Nigerian money offer scam; and 26 percent had funds withdrawn from their bank accounts for buyers clubs they never agreed to purchase.

            “People should guard their personal financial information carefully, because it may be hard to prove that they never authorized the withdrawals and get that money back in their accounts,” says Susan Grant, director of NFIC. She notes that the Federal Trade Commission is proposing to amend the federal Telemarketing Sales Rule to outlaw companies from getting consumers’ billing information from or providing it to third parties.

            National Consumers League launched a new consumer education initiative today, “Stop Calling Me! How to Get Off Marketing Lists” to help consumers take charge of their privacy. A new section of NCL’s Web site, www.nclnet.org/privacy, has been unveiled in connection with National Consumer Protection Week 2002, which focuses on privacy.

“Stop Calling Me!” features tips about how to avoid getting on marketing lists, how to remove your name, and what to do if your privacy is violated. Links are provided to make it easy for consumers to get more information and take action. There is a brochure and a tip sheet that can be downloaded and printed to use as handouts. This new section of NCL’s Web site also offers other useful information for consumers, such as “Online E-ssentials,” a consumer guide to Internet privacy and security.

            “Invasions of privacy can be more than just annoying,” says Grant. “Your personal information can be abused for illegal purposes.” She notes that fraudulent telemarketers use lists to target likely victims. For example, seniors are disproportionately targeted for sweepstakes scams, with people 60 and older representing 60 percent of victims in that category in 2001, despite making up only 26 percent of telemarketing victims overall. 

2001 Top Telemarketing Frauds

The top ten telemarketing frauds reported to NFIC are, in order: work-at-home schemes, prizes/sweepstakes, credit card offers, advance fee loans, magazine sales, telephone slamming, buyers clubs, credit card loss protection, Nigerian money offers, telephone pay-per-call services.

Click here for details about the top ten telemarketing frauds and telemarketing fraud trends in 2001.

Tips to Get Off of Marketing Lists

Ÿ         Don’t provide information that isn’t necessary for the transaction. 

Ÿ         Be anonymous. Consider using online tools and fictitious names in situations where your real identity isn’t needed and there is no other option to avoid getting on marketing lists.  

Ÿ         Think twice before entering contests.

Ÿ         Know the privacy policy. 

Ÿ         Understand your privacy choices. If there is no privacy policy or it doesn’t allow you to avoid unwanted marketing, take your business elsewhere.

Ÿ         Know when your personal information is being collected. Be aware of Automatic Number Identification and other ways that your information may be collected, and tell the company if you don’t want to be put on a marketing list.

Ÿ         Understand that unlisted and unpublished phone numbers don’t guaranty privacy.

Ÿ         Know your telemarketing rights. Federal law allows you to tell marketers not to call you again. Check with your state attorney general’s office to find out if you also have “Do Not Call” rights under state law.

Ÿ         Know your financial privacy rights. Federal law requires financial institutions to tell you what information they collect and how they use it and allows you to request that your personal information not be shared with unrelated companies. Check with your state attorney general’s office to find out if you also have financial privacy rights under state law.

Ÿ         Know your medical privacy rights. Federal regulations limit how your health information can be used and shared with others for marketing purposes. Check with your state attorney general’s office to find out if you also have medical privacy rights under state law.

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.

###