ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, October 30, 1996 TAG: 9610300019
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
COLUMN: Marketplace
SOURCE: MEGAN SCHNABEL
Consumers beware: The weeks leading up to Christmas are prime fraud time, especially for scam artists who prey on our seasonal feelings of peace on Earth and good will toward men.
Fraudulent charity requests are a big problem this time of year, so be wary of solicitations - by phone, through the mail or at your front door - that don't sound quite right. And year-round, you need to be on the lookout for scammers trying to sell you merchandise or services.
The American Association of Retired Persons has launched a nationwide project to teach people how to recognize and avoid telemarketing fraud. AARP will focus on reaching older consumers, who typically are the most frequently victimized. The AARP found that 56 percent of the names on ``mooch lists'' - lists of likely victims kept by telemarketers - were of people 50 or older.
But anyone with a telephone can be the victim of telemarketing fraud.
``Fraud does not know whether you carry an AARP card,'' said Steven Mehlman, AARP customer representative in Atlanta. "It can happen to anybody."
According to Congress, Americans lose an estimated $40billion each year to fraudulent sales of goods and services over the telephone. But fewer than 5percent of the people surveyed by AARP believe fraudulent telemarketers are criminals. So here, from the organization, are examples of popular pitches used by fraudulent telemarketers - plus explanations of why they're illegal.
The pitch: ``We know you lost your money in a telemarketing scam, and my company will get it back for you. Just give me your credit card number to cover our service charge.''
The law: The caller may work for the same company that stole your money the first time, or he may have bought that company's customer list. By law, you don't have to pay a caller who promises to recover money or goods until seven business days after you actually receive the promised money or items.
The pitch: ``You're eligible to win a car worth $35,000 or a European vacation. Your purchase of our fabulous vitamins will automatically enter you into this sweepstakes.''
The law: A prize is free. You don't have to pay any money or buy any products to enter a sweepstakes or contest. The caller must tell you the odds of actually winning a prize, and, if he tells you you've already won something, he also must tell you all the costs associated with claiming the prize.
The pitch: ``We've extended this amazing offer for magazines at low, low prices, but I need your payment by midnight tonight. Just give me your bank account number, and I can process your order.''
The law: The caller must get your written authorization or tape-record your spoken authorization to withdraw money from your account, or send you a written confirmation of the transaction before trying to withdraw any money.
LENGTH: Medium: 57 lines ILLUSTRATION: GRAPHIC: Chart by staff. color. KEYWORDS: MGRby CNB