Feds: Avoid Telemarketing Scam
The federal government is cracking down on telemarketing scams by launching a new program that could save billions for consumers. CBS News Correspondent Lisa Hughes reports.
According to FBI estimates, some 14,000 illegal telemarketing sales are made every day, and Americans are getting bilked out of $40 billion every year.
"Telemarketing fraud is a plague, just a pure and simple plague, infecting our nation," Attorney General Janet Reno said at a press conference Wednesday.
The government is introducing Know Fraud, the biggest public service campaign ever directed at telemarketing fraud. Every household in the country will receive a postcard informing residents how to protect themselves from scams.
"Even a television ad on the Super Bowl can't have that kind of reach," says U.S. Postmaster General William Henderson of the 121 million postcards. "We deliver to virtually everyone, everywhere, every day."
The jumbo-size postcard is printed with a list of tips, such as not disclosing private information to an unknown caller or sending money to collect a promised prize.
In the last year, the U.S. Postal Inspection Service arrested more than 1,500 individuals for mail fraud, securing some 1,370 convictions and returning $600 million to consumers, according to Kenneth Weaver, chief postal inspector. In fact, the mass postcard mailing and other educational initiatives are being supported by money recouped from one mail scam case.
The Know Fraud campaign is paid for by a con artist from Iowa. Postal inspectors caught him charging people $16 for a credit card with a $5,000 limit. Customers received nothing. Before his arrest and conviction, the con artist got $23 million.
One former telemarketer now teaches consumers about the tricks of his previous trade.
"It is easier now than ever to scare people out of their money," says John T., a former telemarketer who would not reveal his last name.
Ten years ago, John was arrested for telemarketing fraud. Since then, he has worked to educate consumers, urging them to avoid the sweepstakes mentality.
"'Congratulations - you've won!' seems to set off something in our minds," he says.
The government hopes this new coast-to-coast campaign will get Americans to think twice before buying into an empty promise.
Officials also announced ways for consumers to get information. The Web site, www.consumer.gov/knowfraud, offers tips for consumers and lets them file an online complaint. The toll-free number 877-987-3728 also instructs consumers on how to report complaints if they have been fraud victims.