The Old Shell Game

Phony prize offers, hidden phone charges, and get-rich-quick schemes are just of few of the most popular con games foisted on Americans during the past year.

While some of these have been around since the dawn of greed, there is still an ample supply of gullible people to keep old scams running and new ones budding.

But it is no longer simply a matter of caveat emptor and "you're on your own." The National Consumers League has nearly a century of experience protecting and representing consumers and workers. Take a look at the Top Ten Scams of 1997. Is any of this sounding familiar?

For a complete resource on other types of consumer fraud and ways you can avoid falling prey to these rackets, visit the National Fraud Information Center. This organization, founded by the National Consumers League in 1992, has an excellent collection of links to consumer resources on the Internet. The NIFC also can be reached toll-free at 1-800-876-7060.

CBS This Morning Consumer Correspondent Herb Weisbaum reports on a growing problem for unwary telephone customers. It's called "cramming," and unless you check your phone bill carefully, you could be getting something you didn't bargain for.

There are two types of fraudulent charges commonly "crammed" onto phone bills: club memberships (such as psychic clubs, personal clubs, and travel clubs) and telecommunications services (such as voice mail, paging, and calling cards).

Most "cramming" cons involve an 800-number, with its toll-free connotations creating an illusion of safety. The initial call may be free, but caller-I.D. technology allows the other end to capture your number while you're on the line. Even if you don't fall for the pitch, charges can show up on your phone bill.

There are ways to protect yourself from being "crammed" by unscrupulous operators. Be wary of the following:

• 800-numbers where you are asked to enter codes, leave your name, or answer "yes" to prompts.
  
• Contest and sweepstakes forms that ask for your phone number.
  
• Offers of free prizes that ask you to call a 900-number for claiming.

For more on specific "cramming" scams and ways to guard against this growing consumer fraud, see the Federal Trade Commission publication "Cramming: Mystery Phone Charges." If you feel you have been a victim of consumer fraud, you can use the Federal Trade Commission's Bureau of Consumer Protection Complaint Form to report your experience via the Internet.

Written by Curtis Grisham