A new type of telemarketing fraud is robbing consumers of their hard earned money.
These con artists are targeting your checking account by using the direct debit system to their advantage,
so please be aware. Consumers from coast to coast are being hit by unauthorized
withdrawals from their checking accounts. Direct debit is very useful method of
making mortgage and car payments or even shopping without having to carry cash. But there does exist
those people who have no qualms about helping themselves to your money. We are giving the following
warning to consumers:
DO NOT GIVE OUT YOUR CHECKING ACCOUT INFORMATION TO ANYONE OVER THE PHONE
UNLESS YOU KNOW EXACTLY WHO IT IS
YOUR CHECKING ACCOUNT
The telemarketers take your checking account information and put it on a demand draft. A demand draft is
very similar to an actual check, but does not require your signature. Of course the telemarketer can fill
in whatever amount they want to try and get from your account. You will not know this even occurred until
you try to withdraw money from your account or find out that a check bounced.
THE BAIT
When speaking to one of these telemarketers, there will always be some reason that your checking or credit
card information is required. The lures that they use may seem too good to pass up, so please be careful.
You may be contacted by a telemarketer who convinces you that he is from your bank and is doing a routine
update and needs your checking account information. Remember that no legitimate creditor ever needs your
checking or credit card information over the phone for "verification" or "computer purposes".
A common approach is leading you to believe that you have won or qualified for some prize or contest.
These prizes include cars, vacations, TV & stereos and even money. All you need to do is cover the small
cost of processing or shipping. To do this, you need to give them your checking or credit card information.
They will get your money and you will get nothing.
The promise of "platinum" and "gold" credit cards is one of the best offerings. By obtaining one of their credit
cards, after paying an initiation fee, you are promised that you will be able to reestablish your credit rating. The problem is that these "credit programs" charge hefty interest and service charges and do not report to the credit bureaus.
THE APPROACH
There are several ways that these telemarketers may contact you, but the telephone is always involved:
The Cold Call: The phone rings and it is someone who you don't know offering you bait. They may
even know personal information about you leading you to believe that the bait you are receiving is
legitimate. Telemarketers obtain mailing lists that have certain information such as you income,
your area of employment and other information. Don't be fooled.
Offers in the Mail: You may receive a card or letter that says you have won or qualified for
a prize or contest. You will be asked to eithery fill out the card and send it back, or to all a "900"
phone number. Whatever information you provide when you fill out the card will be used during a
telemarketing phone call.
Advertisements - Television, Magazines & Newspapers: Once again, watch out for "900" or "976" phone
numbers. Many of these ads are very well done, flashy and make you believe that they are legitimate.
Be very cautious when it comes to doing business over the phone or the Internet.
"900" PHONE NUMBERS
Through an ad, or a conversation with a telemarketer, you may directed to call a "900" phone number.
These phone calls can cost anywhere from $2 to $50. Some of these phone number charge a flat fee, while
others charge by the minute. Avoid calling these phone numbers even though it may be very tempting.
All you will receive is an inflated telephone bill.
PROTECT YOURSELF
You may not realize that you have been the victim of telemarketing fraud until you find money missing from your account. Do not give out your checking or credit card information unless you completely understand the company you are dealing with and why the information is required. Once you have lost money, it may become difficult to recover your lost money.
If you have been the victim of telemarketing fraud, contact your bank and advise that you did not authorize the transaction and prevent any further unauthorized debits. Also, contact your State Attorney General.
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