Sep 9, 2008
Telemarketing Scam Alert From the Better Business Bureau
28 Jul 2008
The Better Business Bureau (BBB) is warning small businesses and consumers to beware of scam activity generating from Champlain, New York - with a tiny population of just over 1,200 it has over 3,000 complaints that involve companies with Champlain and nearby cross-border addresses.
The pitch is often over the phone – and may seem harmless:
Hi, this is (insert a name) from (a company you’ve never heard of) in New York (but they are not there – just their mailbox is)
Your name is: (The rep already had it)
Your phone # is: (The rep already had it)
Can I confirm your address? (The rep already had it)
Thank you. Your business will be listed in our next directory (And - You’ve just been scammed)
With a few simple questions presented by a trained telemarketer, a “sale” is made. The schemes work because people feel more confident doing business with a company in their own country. What they don’t realize is that the ‘offices’ listed in New York are actually a mail-box drop and the key for scammers to have a place to call ‘home’ in New York State. These businesses open a mail-box and then close or move, ultimately ripping people off.
Typical Scams:
• Business Directories
• Credit Card Companies
• Grant Offers
• Advance Fee Loans
• Discount Health Care Plans
• Cash Losses:
The BBB reports $600,000 in dispute from complaints filed in the past year, however - the BBB estimates millions of dollars are lost through these scams each and every year based on historical filing behaviours - reporting that many victims do not file a complaint or do not recognize that a scam has occurred and proceed with payment on phony invoices.