National Consumers League

National Fraud Information Center

media@nclnet.org

 

January – June 2004

 

 

 

 

Top Ten Telemarketing Scams

(click on links to tips for avoiding types of fraud)

 

 

  1. Prizes/sweepstakes

            Request for payment based on promise of cash or valuable prizes that never materialize

  1. Credit card offers

            False promises of credit cards, even if credit is bad, for a fee paid upfront

  1. Advance fee loans

            False promises of personal or business loans, even if credit is bad, for a fee paid upfront

  1. Lotteries/lottery clubs

            False claims that consumers have won, or can get help to win, a lottery, often in a foreign country

  1. Work at home plans

Kits sold on false promises of big profits from working at home

  1. Magazine sales scams

            Con artists misrepresent the cost of subscriptions or pretend to be the publisher calling about renewals

  1. Buyers clubs

            Memberships in discounts buying clubs consumers never agreed to join or through were free trail offers

  1. Government Services

            Phony offers for government grants, loans, documents, and other services.

  1. Travel/vacations

            Offers of free or discount travel that never materialize

  1. Office Supply: Toner

            Crooks pretending to be regular office suppliers but never deliver toner or sell an inferior product.

 

 

Average Losses
  • Average loss for first half of 2004: $2,085

 

2003

  • Average loss: $1,504

 

 

Jan-June

2004

%

Average loss ($)

 

 

 

1.      Prizes/sweepstakes

32%

2,458

2.      Credit card offers

18%

253

3.      Advance fee loans

6%

1,560

4.      Lotteries/lottery clubs

5%

5,538

5.      Work at home plans

4%

2,168

6.      Magazine sales scams

4%

149

7.      Buyers clubs

4%

220

8.      Government services

4%

81

9.      Travel/vacations

2%

1,754

10.  Office supply: toner

2%

912

 

 

Payment Methods

  • Bank debit as a form of payment is down from 37 percent in 2003 to 31 percent six months into 2004.
  • Wire transfer as a form of payment is up from 21 percent to 25 percent.

 

Payment Methods Overall

Bank Debit

31%

Wire

25%

Check

12%

Credit Card

11%

Money Order

9%

 

 

Methods of Contact

 

Initial Contact Overall

Phone

68%

mail

18%

print

9%

Other

3%

Tv/radio

2%

 

 

 

 

Locations of Crooks

 

 

New York

16%

Florida

15%

Canada

12%

California

8%

Tie: Nevada and Countries Outside U.S./Canada

7%

 

 

 

 

Top 10 Locations of Victims*

 

  1. Wyoming
  2. Alaska
  3. Maine
  4. Michigan
  5. New Hampshire

 

*Rankings calculated by relative state population.

Ages of Victims

 

Age

 

Under 30

16%

30-39

16%

40-49

18%

50-59

16%

60-69

10%

70-79

14%

80+

10%

                                               

 

 

 

About National Consumers League and National Fraud Information Center

 

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 or 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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