TTY & INTERNET RELAY SERVICE SCAM

This so-called “Nigerian Scam” is now being carried out using Internet relay services intended for the hearing and speech impaired.  Con artists have been utilizing a free service that allows a hearing or speech impaired person to make a telephone call, called “TTY” or “Internet Relay Service.”  This service allows a hearing or speech impaired person to have a conversation over the phone by typing their half of a conversation into a special device or a website which is monitored by operators at a call center.  The operator places the call and reads the TTY caller’s conversation to the recipient of the call.  In turn, the operator types the recipient’s half of the conversation back to the TTY caller.
 
Scammers, posing as hearing impaired individuals, have been using the Internet relay service to conduct scams that target businesses.  For example, a small bridal shop in Dothan, Alabama received a large order for 10 wedding gowns to be shipped to Lagos City in Nigeria.  The customer, posing as a deaf person, called using an Internet relay service to place the order and tried to use a combination of six different stolen credit cards to pay for the $5,500 purchase. 
 
Scammers have been using the Internet relay services for a number of reasons.  First, the service will conceal a Nigerian caller’s accent and broken English, alleviating any suspicion that the receiver of the call may have.  Second, because the Internet relay services are paid for by a public fund, the scammer is making an otherwise costly international call for free. And finally, receivers of an Internet relay call are more likely to be sympathetic and less likely to have their suspicions raised if they believe the call is legitimately coming from a handicapped or hearing-impaired person. 

If you suspect an Internet relay service call is not legitimate, ask to phone the caller back to verify the call is coming from a TTY telephone.  Don't be afraid to ask a lot of questions to confirm the validity of the call -- it's your money and your merchandise at risk!
 
PHONY PRIZE PROMOTIONS AND SWEEPSTAKES SCHEMES

"You're a WINNER!!!"
Often telemarketers, including those operating across national borders, "guarantee" that you've won valuable prizes, such as vacations, automobiles or large sums of cash, but want you to pay "fees" for shipping, taxes, customs, or other non-existent expenses. Beware of anyone who asks you to pay to claim a "prize" or "free" gift. You may not receive anything at all, or you may get a cheap gift that is worth far less than the "fees" that you have paid.

Some sweepstakes scams draw you in by claiming that you're a winner. Then they tell you that your chance of getting better prizes will grow if you first pay "entitlement fees" to qualify for larger winnings. You may even receive a small item as an inducement to get you to send even more money.
Some rip-off artists target consumers who have previously lost money to illegal foreign sweepstakes schemes. They tell the victims that the government has won a lawsuit against the company that originally scammed them. The victims are told that they need to first pay legal fees or taxes to the government in order to regain their money.  If you receive an unsolicited call telling you that "You're a winner," remember:

• Don't pay for a "free" prize or gift. Free is free.
• Don't share you credit card and bank account numbers. Scam artists often ask for them during an unsolicited sales pitch, and then use them to commit other frauds against you.
• If you are approached to pay money to recover funds that you are owed, independently contact the appropriate government agency to check out those claims.

INTERNATIONAL LOTTERY SCAMS

"Congratulations! You may receive a certified check for up to $400,000 U.S. CASH! One Lump sum! Tax free! Your odds to WIN are 1-6."
Hang onto your wallet -- it's a fraud. Scam operators are using the telephone and direct mail to entice consumers to buy chances in high-stakes foreign lotteries from as far away as Australia and Europe.  Most promotions for foreign lotteries are likely to be phony. Many scam operators don't even buy the promised lottery tickets.  Other buy some tickets but keep the "winnings" for themselves.  In addition, lottery hustlers use the victims' bank account numbers to make unauthorized withdrawals or their credit card numbers to run up additional charges. If you're thinking about responding to a foreign lottery, don't do it!

• Ignore all mail and phone solicitations for foreign lottery promotions. If you get what looks like lottery material from a foreign country, turn it over to your local postmaster in the U.S. or to the Competition Bureau in Canada.
• By responding to just one foreign lottery offer, you've opened the door to many more bogus offers for lottery or investment "opportunities". Your name will be added to "sucker lists" that fraudulent telemarketers buy and sell.
• In both the U.S. and Canada, it's illegal to play a foreign lottery - through the mail or on the telephone or Internet. Don't add insult to injury by inviting federal charges.

ADVANCE-FEE LOAN "SHARKS"

"The caller said he could get me a loan, no questions asked, so I could pay off some bills. I just needed to pay him $250 up front and he'd do the rest. I gave him my credit card number, but that was the last I heard from him. Now I'm out the $250 and I still owe my creditors." A different breed of "loan-shark" is preying on unwary consumers by taking their money for the promise of a loan, credit card or other extension of credit.

Advertisements and promotions for advance-fee loans suggest that there's a high likelihood of success that the loan will be granted, regardless of your credit history. But to take advantage of the offer, you have to pay a fee first. And that's the catch: You pay the fee, the scam artist takes off with your money and the loan never materializes.

Legitimate guaranteed offers of credit don't require payments up front. Legitimate lenders may require that you pay application, appraisal or credit report fees, but these fees seldom are required before the lender is identified and the application is completed. In addition, the fees generally are paid to the lender, not to the broker or person who arranged the "guaranteed" loan.

Legitimate lenders may guarantee firm offers of credit to creditworthy consumers, but they rarely do it before evaluating a consumer's creditworthiness.

Advertisements for advance-fee loans generally appear in the classified section of daily and weekly newspapers and magazines. Often, the ads feature "900" numbers, which result in charges on your phone bill.

Advance-fee loans also are promoted through direct mail and radio and cable TV spots. Remember that just because an ad appears in a media outlet that you recognize - like your local newspaper or radio station - it's not guarantee that the company behind the ad is legit. What to do when you see an ad guaranteeing a loan for an advance fee:

• Don't pay for a promise. In most jurisdictions, it's illegal for companies doing business by phone to promise you a loan and ask you to pay for it before they deliver.
• Ignore any ad - or hang up on any caller - that guarantees a loan in exchange for an advance fee. Legitimate lenders never "guarantee" or say that you will receive a loan before you apply, especially if you have bad credit or no credit record.
• Never give your credit card or bank account numbers, Social Security number, Social Insurance Number, or other identifying number on the telephone unless you are familiar with the company and know why the information is necessary.

CREDIT CARD LOSS PROTECTION OFFERS

"I got a call from a woman who said I need credit card loss protection insurance. I thought there was a law that limited my liability to $50 for unauthorized charges. She said the law had changed and that now, people are liable for all unauthorized charges on their account. Is that true?"  No.  Don't buy the pitch - and don't buy "loss protection" insurance. Telephone scam artists are lying to get people to buy worthless credit card loss protection and insurance programs.  If you didn't authorize a charge, don't pay it. Follow your credit card issuer's procedures for disputing charges you haven't authorized. In the United States, your liability for unauthorized charges remains at $50. In some provinces of Canada, you may have no liability at all.

Worthless credit card loss protection is a popular offering for promoters trying to exploit consumer uncertainty.  Avoid doing business with callers who claim that:

• you're liable for more than $50 in unauthorized charges on your credit card account;
• you need credit card loss protection because computer hackers can access your credit card number and charge thousands of dollars to your account;
• a computer bug could make it easy for thieves to place unauthorized charges on your credit card account; and
• they're from "the security department" and want to activate the protection feature on your credit card.

IDENTITY THEFT

Don't give out personal information - including your credit card or bank account numbers - over the phone or online unless you're familiar with the business that's asking.  Scam artists can use your personal information to commit fraud, such as identity theft - one of the fastest-growing white-collar crimes in North America.  That's where someone uses your personal information, such as your credit card account number, social insurance number, or other identifying number, mother's maiden name, or birth date, without your knowledge or permission to commit fraud or theft.

TRIP TRAPS

"Hello...you have been specially selected to receive our SPECTACULAR LUXURY DREAM VACATION offer!"
Don't get that passport photo just yet. While some travel opportunities sold over the phone are legitimate, many are scams that target consumers in another country.  The word "offer" can be a clue to hidden charges.

The salesperson may ask for your credit card number to bill your account for the travel package.  Once you pay, you get the details of the "package," which usually include instructions for making trip reservation requests. Your request often must be accompanied by yet another fee. In addition, many offers require you to pay upgrade costs to get the actual destinations, accommodations, cruises, or dates your were promised. Some offers may require you to pay more for port charges, hotel taxes or services fees.

See a pattern developing? New charges are being added every step of the way. You may never get your "bargain" trip because your reservations may not be confirmed or because you must comply with hard-to-meet hidden or expensive "conditions".

Unpleasant surprises can ruin a vacation, especially when they cost money. That's why it pays to investigate a travel package before you buy. Consider these travellers' advisories:

• Be wary of "great deals" and low-priced offers. Few legitimate businesses can afford to give away products and services of real value or substantially undercut other companies' prices.
• Don't be pressured into buying. Legitimate businesses don't expect you to make snap decisions.
• Ask detailed questions. Find out exactly what the price covers and what it doesn't. Ask about additional charges. Get the names of the hotel, airports, airlines, and restaurants included in your package. Consider contacting these businesses directly to verify arrangements. Ask about cancellation policies and refunds. If the salesperson can't give you detailed answers, hang up.

PUTTING COLD CALLS ON ICE

What are some examples of deceptive telemarketing?

• Charging you for a non-existent or misrepresented product, service or charitable gift.
• Getting your private banking information or credit card number in order to steal.
• Offering you a "prize" for which you must pay money.
• Taking your money fraudulently in any way.

So just how did they get your number? Fraudulent telemarketers may get your phone number from a telephone directory, mailing list or "sucker" list. Sucker lists include names, addresses, phone numbers - even how much money you may have spent on telemarketing scams in the past.

Unscrupulous promoters buy and sell sucker lists on the theory that consumers who have been deceived once are easy prey for additional scams. You may not be able to put a freeze on cold calls, but you can learn how to spot those that spell f-r-a-u-d. Here's how:  Be cautious!

• Say no to high-pressure sales tactics. If you are pressured into making a decision immediately, it's probably not a legitimate deal. Legitimate businesses respect the fact that you're not interested.
• Take your time when you're presented with a sales "opportunity". Ask for written information about the product, service, investment opportunity, or charity that's being pitched. Don't talk with a salesperson if it's not convenient for you. A reputable salesperson should be willing to call you back at a time you choose.
• Talk to a friend, relative or financial advisor before you respond to a cold call. Any investment you make may have serious financial consequences for you - and the people you care about.
• Hang up if you're asked to pay for a prize. Free is free.
• Don't send money - cash, check or money order - by courier, overnight delivery or wire to anyone who insists on immediate payment.
• Keep information about your bank accounts and credit cards to yourself - unless you know who you're dealing with.
• Check out the company with your state, provincial and local consumer protection office before you buy any product or service, or donate money.
• Hang up if a telemarketer calls before 8 a.m. or after 9 p.m. That's a tip-off to a rip-off.
• Tell callers to take your name off their contact lists if you don't want to hear from them again. If they call back you can feel comfortable hanging up. It's not rude - it's smart.