2003 Telemarketing Fraud Report
National Consumers League
January 2004
(click on links to tips for avoiding types of fraud)
False promises of credit cards, even if credit is bad, for a fee paid upfront
Request for payment based on promise of cash or valuable prizes that never materialize
Kits sold on false promises of big profits from working at home
Con artists misrepresent the cost of subscriptions or pretend to be the publisher calling about renewals
False promises of personal or business loans, even if credit is bad, for a fee paid upfront
False claims that consumers have won, or can get help to win, a lottery, often in a foreign country
Memberships in discounts buying clubs consumers never agreed to join or through were free trail offers
Offers of free or discount travel that never materialize
Switch
consumers’ phone service to another carrier without their consent
Offers
to help you start your own business with claims of high earnings with little
effort
Average Losses
2003
2002
|
2003 |
% |
Average loss ($) |
|
|
|
|
|
1. Credit card offers |
23% |
233 |
|
2. Prizes/sweepstakes |
21% |
3,031 |
|
3. Work at home plans |
10% |
392 |
|
4. Magazine sales scams |
7% |
110 |
|
5. Advance fee loans |
6% |
1,662 |
|
6. Lotteries/lottery clubs |
5% |
5,127 |
|
7. Buyers clubs |
4% |
225 |
|
8. Travel/vacations |
2% |
571 |
|
9. Telephone slamming |
2% |
103 |
|
10. Business
opportunities/ |
2% |
5,376 |
|
2002 |
% |
Average loss ($) |
|
|
|
|
|
1. Credit card offers |
27% |
208 |
|
2. Work at home plans |
18% |
310 |
|
3.
Prizes/ |
16% |
2,379 |
|
4. Advance fee loans |
8% |
1,147 |
|
5. Magazine sales scams |
5% |
183 |
|
6. Buyers clubs |
4% |
169 |
|
7. Telephone slamming |
2% |
186 |
|
8. Lotteries/lottery clubs |
2% |
5,272 |
|
9. Travel/vacations |
2% |
562 |
|
10. Nigerian money offers |
2% |
None |
In 2003, debits from a victim’s bank account were the most common method of payment. This is consistent with recent statistics, although not so with those from the early days of NFIC. In 1995, for example, bank account debits made up only 8 percent of overall payments. Increasingly, crooks are discovering debit as a fast way to get victims’ money.
Locations of Crooks
|
2003 |
2002 |
||
|
|
12% |
|
14% |
|
|
12% |
|
14% |
|
|
12% |
|
9% |
|
|
7% |
|
7% |
|
|
7% |
|
5% |
|
Outside U.S./Canada |
5% |
|
5% |
|
|
4% |
Outside U.S./Canada |
4% |
|
|
3% |
|
4% |
|
AZ-Arizona |
3% |
|
3% |
|
|
2% |
|
3% |
*In 2003, NCL/NFIC, for the first time ever, has calculated the location of victims relative to the state’s population. This method of measurement is more accurate in determining which states have the most victims.
The new analysis has uncovered an interesting trend: apparently, people living in low-population, often rural areas, are disproportionately telemarketing fraud victims.
|
Age |
2003 |
2002 |
|
Under 20 |
-- |
-- |
|
20-29 |
13% |
16% |
|
30-39 |
17% |
19% |
|
40-49 |
20% |
22% |
|
50-59 |
16% |
16% |
|
60-69 |
11% |
12% |
|
70-79 |
13% |
9% |
|
80+ |
10% |
6% |
· Steepest rise between 2002 and 2003 are victims ages 70+.
· Most credit card offer victims in 2003 were in 20s, 30s, and 40s.
· Top complaints for victims ages 60 and older: prizes/sweepstakes (66%); lotteries/lottery clubs (59%); magazine sales scams (52%)
About National Consumers League and National Fraud
Information Center
The National
Consumers League, founded in 1899, is
.
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 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.
###