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Risk Alert
to CU Members - Avoiding Telemarketing Fraud
If and when you send money to a person you do not know or
give personal or financial information to unknown callers,
you increase your chances of becoming a victim of
telemarketing fraud.
When you hear statements
like "you must act now"; "you have won a free gift or prize";
or "this a no risk offer," be cautious as you could be subject
to a telemarketing fraud scheme. It would be best to just say
"no thanks"
at this stage and hang up
the phone, however, most people are willing to listen to the
presentation of more information on the subject.
Remember, it is virtually
impossible to get your money back once it is paid out under
fraudulent means and before buying anything over the
telephone. Remember these commonsense tips and safeguards:
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Don't buy from an
unfamiliar company or a company that is not willing to share
information about themselves. Legitimate businesses
understand that you want more information about their
company and are happy to comply.
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Always request and
obtain written material about any offer, charity or
investment opportunity before acting. If you get brochures
about costly investments, fully discuss investment
opportunities with a trusted friend, family member, or
financial advisor before making any commitments. Ask someone
whose financial advice you trust to review offers, charities
or investments. And, remember, not everything in written
form is true.
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Conduct your own
research about a company before consummating any business
with them - Contact your local consumer protection agency,
the Better Business Bureau, the State Attorney General's
office, the National Fraud Information Center, or other
watchdog groups.
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Verify the accuracy
information relative to the salesperson's name, business
identity, telephone number, street address, mailing address,
and business license number before you transact business.
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Before you give to any
charity or make an investment, find out what percentage of
the money is paid in commissions and what percentage
actually goes to the charity or investment.
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Ask yourself this
question before making any purchase - "What guarantee do I
really have that this solicitor will use my financial
information in the manner we agreed upon?"
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Pay for services only
after they are delivered and not before they are rendered.
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Be wary of companies
that send a messenger to your home to pick up payment
claiming it is part of their service to you. In reality,
they are taking your money without leaving any trace of who
they are or where they can be reached.
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If a caller tells you
that you have won a contest or lottery of some sort, be wary
if you are asked to pay for taxes or send any money in lieu
of or as a condition of receiving the "prize".
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Never send money or give
out personal information such as credit card numbers and
expiration dates, bank account numbers, dates of birth, or
social security numbers to unfamiliar companies or unknown
persons. Just because a caller tells you they work for a
particular company doesn't mean that it is true.
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If you have been
victimized once, be wary of persons who call offering to
help you recover your losses for a fee paid in advance. This
also could be a scam and you could lose additional money.
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If you have information
about a fraud, report it to state, local, or federal law
enforcement agencies.
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