Consumer Losses to Telemarketing and Internet Fraud Rising in 2000

NCL Launches New "Fraud Alert" on www.fraud.org Web Site

Telemarketing and Internet Fraud Trends for First Nine Months of Year 2000 Released

    WASHINGTON, DC—Consumers are losing more money to telemarketing and Internet fraud in 2000 than they did in 1999 according to a new report released by the National Consumers League today. The report, available on a new Fraud Alert (www.fraud.org/fraudalert.html) section on the National Consumers League's popular www.fraud.org Web site, details changes in telemarketing and Internet fraud based on consumers' reports to the NFIC/IFW from January through September 2000.

“We're seeing some positive trends but there are also alarming signs of trouble, especially concerning the use of debits from consumers' bank accounts in payments related to certain categories of fraud,” noted Susan Grant, director of the National Fraud Information Center/Internet Fraud Watch.

Report highlights include:

§        Top ten telemarketing and Internet frauds through September 2000

§        Credit cards as payment methods for Internet fraud have almost tripled.

§        Bank debits up 150% as payment methods for all telemarketing

§        Average losses in telemarketing fraud have risen $425 since 1999

§        Newsgroups increase 700% as initial contact for Internet fraud

The new Fraud Alert section of the Web site provides a “heads up” on emerging trends in telemarketing and Internet fraud, new scams, and significant anti-fraud activities. The site houses information and online reporting forms for NCL’s National Fraud Information Center/Internet Fraud Watch, a hotline that gives consumers advice about telemarketing and online offers and transmits information about suspected scams to law enforcement agencies.

      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.

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