For Immediate Release
	August 23, 2002
	Contact: Carol McKay
	202-835-3323 ext.114
	media@nclnet.org

One in Four Telemarketing Victims Age 60 and Older

NCL Warns Consumers about Telemarketing Scams, Launches Elder Fraud Web Site for National Fraud Against Seniors Awareness Week, Aug. 25-31, 2002

Washington , DC —More than a quarter of all consumers who reported telemarketing fraud to the National Consumers League’s National Fraud Information Center (NFIC) hotline during the first six months of this year were age 60 or older. But in some of the top telemarketing scams, older people accounted for a much larger percentage of victims. “These criminals prey on seniors, using the telephone instead of a gun to rob them,” said Susan Grant, director of the NFIC. “Senior citizens need to know how to recognize the danger signs of telemarketing fraud and deal with suspicious callers.”

While 26 percent of telemarketing fraud reports the NFIC received from January through June 2002 were from consumers in the 60+ age group, they accounted for: 61 percent of complaints about fraudulent sweepstakes and prize offers; 57 percent of complaints about bogus magazine sales; and 42 percent of complaints about credit card loss protection plans.

Top Three Telemarketing Frauds against Seniors

1. Sweepstakes and Prize Offers

Average Consumer Loss: $2,752

The pitch: You have won a fabulous prize, but you must pay taxes or fees, or buy something to get it.

The scam: You pay and don’t get anything, or you get a cheap trinket.

The danger sign: The request for money—it’s illegal for a telemarketer to ask you to pay to win something or claim a prize. Taxes are deducted from winnings or you pay them directly to the government.

2. Magazine Sales

Average Consumer Loss: $98

The pitch: Subscribe for just pennies a day, or renew your current subscription at a low rate.

The scam: The total cost is more than you realize, or, betting on the fact that you may subscribe to a popular magazine, the caller gets your money to renew and simply pockets it.

The danger sign: Pressure to act immediately or refusal to provide contact information for the publisher so you can verify that the caller is legitimate.

3. Credit Card Loss Protection Plans

Average Consumer Loss: $229

The pitch: You need this protection because you could lose lots of money if someone steals your credit card and uses it.

The scam: You are only liable for $50 and most credit card issuers will remove fraudulent charges completely if you notify them promptly.

The danger sign: Scare tactics or claims that the caller is affiliated with your credit card issuer.

“When seniors suspect telemarketing fraud, they should hang up and report it to the NFIC,” said Grant. “Don’t worry about being rude when you think that someone is trying to hold you up.” In conjunction with National Fraud Against Seniors Awareness Week (http://www.usps.com/postalinspectors/fraud/seniorwk.htm), NCL has recently unveiled a special section on the NFIC Web site, www.fraud.org/elderfraud, for seniors, their families, and those who work with older consumers. It offers advice and a downloadable brochure, They Can’t Hang Up. The brochure is in English and Spanish. Also available is a 20-minute videotape about telemarketing fraud against seniors. These materials were developed with a grant from American Express. To order the video, contact NCL at 202-835-3323.

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 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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