Home

Law Talk: Phony Business: Telemarketers and Telephone Scams

June, 2010

The telephone has been a favourite tool among scammers for decades. Consumers are defrauded every day by smooth talkers who convince them to divulge their personal information. The best defence against fraud is education and prevention. That's because it is often impossible for victims to track down and recover money from the fraudsters. If you find yourself caught in a telephone scam, call the Canadian Anti-Fraud Call Centre (Phonebusters) at 1-888-495-8501 for information on reporting and taking action.

Phishing by Telephone

You're probably familiar with phishing over the internet. You may not know that phishing can also be done by telephone. Consumers may get a call from someone pretending to be from a company or government agency. The caller may make false claims and ask for personal information.

In one common example, the fraudster calls and claims to be from your credit card company. They warn you that your card may have been used for fraudulent purposes, and they ask you for information such as your address, date of birth, or even your social insurance number. Real credit card companies will usually only ask if particular transactions have recently been made; they don't ask for your personal information because they don't need it.

Always be suspicious of anyone calling you unexpectedly and asking you for personal information. When a caller does this, take steps to verify their identity before giving them any information.

900 Numbers

Scammers have been known to take advantage of pay-per-call to trick consumers into forking over big bucks. Don't confuse toll-free numbers with the charge numbers: 1-900, 1-976, and 1-809.

In one scam, a newspaper ad said "win a free trip to Mexico -- all you have to do is call!" The ad provided an enticing 900 number. Upon calling this number, consumers received nothing more than a $50 charge on their telephone bill.

The Prize You Pay For

A common telephone scam involves a telephone promoter calling you to tell you that you've won a prize. All you have to do to claim it is make a small purchase on your credit card--which they can't wait to get their hands on. It's actually illegal for a caller to give the impression that you've won a prize and to require you to incur a cost to claim it.

Fake Charities

Be wary of fake charities that use high-pressure sales tactics and ask for cash. The Canada Revenue Agency keeps a list of registered charities on its website. If you want to give to a charity, call the charity yourself to make a donation instead of giving your credit card number to an unsolicited caller. Legitimate charities will be glad to accept a donation later.

Telemarketers

There are strict rules governing telemarketers. They must identify themselves and the organization they work for right at the beginning of the call. They also cannot make false or misleading representations in promoting what they're selling. Complaints about telemarketers can be directed to the Competition Bureau, which you can reach at 1-800-348-5358.

Don't Call Me

The Federal government maintains a Do Not Call list which you can get on by calling 1-866-580-DNCL. Getting on the list will block most unsolicited calls to your number, so you can dine in peace.

This column provides legal information only and is produced by the students of Community Legal Services and Pro Bono Students Canada (UWO). If you need legal advice please contact a lawyer, community legal clinic or the Lawyer Referral Service at 1-900-565-4LRS.