Telemarketing involves marketing using the telephone as a means to procure clients and customers.
Telemarketing fraud is a term applied to all types of actions, methods, and schemes that try to lure victims with the use of the telephone in order to send money. It is normal for a fraudulent telemarketer to utilize various misleading representations, statements, and promises.
There are three main purposes for the scheme: to convince the victim that the good, service, or charitable cause is worth the money the money, to get the victim to pay immediately before the value of what they expect to receive can be discovered, and to make their scheme sound legal by imitating legal businesses, legal telemarketing operations, and legal government agencies. Fraudulent telemarketers would never give anyone the value for their money.
If they do come up with a product they promised, the quality would be so much lesser than what was being promised.
A fraudulent telemarketer would always ask for advance payment to be made before the client could get hold of the promised product.
If the consumers were to find the product of less value and attempt to have a refund, the fraudulent telemarketer would cancel the whole transaction and refuse repayment. These telemarketers use nationally advertised couriers delivery services to get hold of the victims’ checks the next business day. Usually, they open up merchant accounts in financial institutions to process the victims’ credit cards.
Fraud telemarketers rarely make false transactions with people who are in the same state as they are operating.
Chances are, they might be easily checked for legitimacy or chased after when discovered. Their target markets are usually those who live outside of the state. Moreover, telemarketing schemers do not pick out their victims just by random. Most often they get leads from other fraudulent telemarketers. They pay to get the names, addresses, and contact numbers of the victims. They are often told just how much the victim was able to cough up from the last telemarketing fraud. Leads usually cost a false telemarketer $10 to $100. Fraudulent telemarketers also employ people who praise the telemarketer’s services.
There are several types of telemarketing fraud.
In charity schemes, the victims are asked to contribute money for a cause. Others may actually give a small amount, about 10 percent, just to show that they are legitimate. In credit card, credit repair, and loan schemes, the victims are those who have bad credit or who have very low incomes and have difficulty getting the right amount of credit. Fraud telemarketers would promise to obtain a credit card for the victim in exchange for a fee.
On the other hand, in advance loan schemes, the person with bad credit is promised a loan in return for an advance fee. Accomplices would later call the victim and say that the loan has been declined. There are also cross-border schemes, Internet schemes, investment and business opportunity schemes, lottery schemes, magazine-promotion schemes, office supply schemes, price promotion schemes, and lastly, recovery room schemes.