Warning: Avoid becoming a telemarketing fraud victim

Each year, millions of Americans fall prey to telemarketing fraud at a cost of $40 billion. However, about eight of every ten elderly people are targeted by telemarketing scams. To help you or your loved ones avoid becoming victims, Better Business Bureau says you need to do more than just hang up the phone.

Telemarketing fraud occurs when a scam artist calls a victim, makes a false statement and the misrepresentation causes the victim to give money to the scammer. Many times, the elderly become victims because they are trustworthy and afraid or even embarrassed to report the crimes.

BBB offers these tips to keep you safe:

• Hang up right away. If you get a recording, don’t push any buttons, just hang up the phone.

• Know you can’t win a contest you didn’t enter.

• Be wary of callers claiming you won a prize and then asking for payment. Prizes are free, so don’t give the company money for taxes on your prize. Taxes will be deducted from your winnings or you will pay them to the government directly.

• Don’t give out personal information to someone on the phone unless you initiated the call and have checked out the person or agency.

• Never wire money or send prepaid debit cards.

• Beware of bad grammar. This can be a red flag.

• Be cautious about foreign sweepstakes companies. Many fraudulent sweepstakes companies that target U.S. consumers are located in Canada or other countries, which makes it more difficult for law enforcement agencies to pursue them.

• Don’t believe everything you hear. Con artists use company names that are identical or very similar to well-known, legitimate companies. Tell them you’ll get back to them and contact the real company to ask if there’s a connection.

• Request the offer in writing. Legitimate companies will give you written information about how an offer works.

• Be wary of offers to send you an advance on your winnings. Some scammers send you a check for part of your winnings, instructing you to deposit it and then wire payment to them for taxes, bonding or some other phony purpose. After you wire the money, the check bounces because it turned out to be an elaborate fake.

• Don’t rush a decision. A caller from a legitimate business will not rush you.

• Ask lots of questions.

Remember, you can always help eliminate calls you don't want by registering with the National Do Not Call Registry. Visit www.donotcall.gov or call (888) 382-1222. Also, if you feel you've been scammed, call the police or file a complaint with the Federal Trade Commission at www.ftc.gov. You can also report it to the BBB's new Scam Tracker at bbb.org/scamtracker.

John North is president of the Dayton Better Business Bureau.

About the Author