AG alerts residents to telemarketing scams

By JOHN RAVELO
REPORTER

The Attorney General’s Office yesterday cautioned local residents to beware of telemarketing scams, amid reports that there were several attempts being made to defraud consumers in the Commonwealth.

In one of these cases, a consumer got swindled $35,000 of his hard-earned savings, according to CNMI consumer counsel Brian Caldwell.

The AGO did not identify the victim, but it said that the consumer got defrauded in a land investment scam. “The consumer was contacted by telephone, and ultimately asked to wire the funds to the perpetrator’s bank account.”

Caldwell also said that his office has received information of attempts to defraud several Rota residents.

“There are several consumers in Rota who are being contacted that they won grants that they never applied for,” Caldwell said. He advised consumers to protect their bank information, Social Security number or money when conducting monetary transactions.

Caldwell also said that it is advisable for consumers to use credit cards in telemarketing transactions, since local and federal laws provide more protection in that the credit card company could be made to bear losses for purchases made when the goods are not actually delivered to the buyers.

Citing studies, Caldwell said Americans lose an estimated $40 billion each year due to fraudulent sales of goods and services over the telephone.

“One of the most likely targets of telemarketing scams is the elderly. Studies have shown that fraudulent telemarketers direct anywhere from 56 percent to nearly 80 percent of their calls to older customers,” he said.

The AGO also announced some of the most common telemarketing scams:

* Sweepstakes and Prize offers: Schemes in which consumers are lured by false offers of cash or other prizes;

* Travel packages: Vacation packages that are advertised as “free” or “low cost”; These packages end up costing an exorbitant amount because of hidden costs, or the seller may not ever provide the promised trip;

* Investments Schemes and Work-At-Home Scams: These schemes promise that you will “get rich quick” or “make $1000/week from home.” They advertise high income with little or no risk, but end up delivering nothing.

* Charity Fundraising Scams: Phony charities that ask for money over the phone, often pressuring you for an immediate gift. Phony charities may try to confuse you by using names that sound like well-known charitable organizations or even law enforcement agencies.

* 900 Numbers or Pay-per-call Services (also known as “pay-per-call” or “information access” services): These scams entice you to pay to make calls in order to receive information, such as how to save money on groceries or how to receive free credit cards. They then charge you exorbitant prices for calling these numbers.

* Recovery Scams: Telemarketers who prey on people who have already been victimized by other telemarketers. For a hefty fee, the recovery room scam will promise to get your money back, or get you the prize or investment you didn’t receive from the first scammer.

The AGO also advised consumers to visit its website at www.cnmiago.gov.mp for more information and other consumer advice.