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WASHINGTON, D.C.—Today the National Consumers League (NCL)
released its
annual lists of the top telemarketing and Internet
scams that plagued consumers in 2005. More consumers are
reporting scams, and victims are losing more money, according to
the nonprofit organization, which is headquartered in
Washington, DC. Based on information that consumers provided
last year to NCL’s National Fraud Information Center/Internet
Fraud Watch program, the average loss to telemarketing fraud
rose from $1,974 in 2004 to $2,892 in 2005, and Internet fraud
losses more than doubled, from an average of $895 in 2004 to
$1,917. The number of scams reported rose by 39 percent for
telemarketing fraud and 12 percent for Internet fraud.
Wire Transfers on the Rise, Dangerous
For
the first time since NCL began tracking Internet fraud in 1997,
wire transfer is the most common way that scammers have gotten
money from victims (31 percent of payments). It is also the #1
method of payment in telemarketing fraud (34 percent of
payments). “Any request from someone you don’t know to wire
money should set off alarm bells,” said Susan Grant, NFIC/IFW
director. “If that’s part of the deal, it’s a scam.”
Payment by wire was most common in connection with fake checks,
lotteries and lottery clubs, advance fee loans, prizes and
sweepstakes, and Nigerian money offers.
Nigerian Money Offer Victims Increase
Among the Top 10 Internet Scams, the most expensive was Nigerian
money offers, with an average loss of nearly $7,000. These scams
originate from con artists, typically in other countries, who
promise to share their fortunes if consumers agree to pay to
transfer the funds to their own bank accounts for safekeeping.
Even more alarming was the increase in victims. Forty-two people
acknowledged losing money to these scams, compared to 18 in
2004, 12 in 2003, 7 in 2002, 10 in 2001, and 1 in 2000. “We know
that what is reported to us is only the tip of the iceberg, so
there are probably thousands of victims around the country,”
said Grant. “Take our word for it — these ‘fortunes’ never, ever
exist, and the scammers simply pocket their victims’ money.”
Beware of Offers for Free Money from the Government
Bogus offers of scholarships and grants rose from the third most
frequently reported telemarketing scam in 2004 to the second
most frequently reported in 2005 (this category wasn’t even in
the Top Ten scams before 2004). Most of these reports were from
consumers who got calls from crooks pretending to be from the
U.S. government offering them government grants and demanding
fees for processing, or requesting their bank account
information for depositing the funds. “Most government grants
are awarded to agencies and organizations for specific projects,
not to individuals,” said Grant. “The government is not calling
people offering them free money because they’re such good
taxpayers or for any other reason.”
NCL
has created new tips about government grant scams, which are in
both the telemarketing and Internet fraud sections of its
www.fraud.org Web site.
How
Consumers Can Protect Themselves from Scams
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Don’t believe promises of
easy money — they’re not true.
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If someone contacts you
unexpectedly and asks for your personal information, be
suspicious; check directly with whoever they claim to
represent to verify.
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Get advice about
telemarketing and online offers from the NFIC/IFW, the
Better Business Bureau, your state or local consumer
protection agency, or other trusted sources.
For
more information and advice, visit
www.fraud.org. |
