Neighbor News
Will that be Wire Transfer, Preloaded Cash Card or Gift Card?
BBB says Regulatory Changes Make It Illegal for Telemarketers to Use Untraceable Payment Methods.
Better Business Bureau Serving Metro Atlanta, Athens & Northeast Georgia says regulatory changes will make it easier for consumers and businesses to identify illegal telemarketers.
Under the Telemarketing Sales Rule (TSR), several of criminals' preferred methods of receiving payment are unlawful. It is now illegal for telemarketers to ask consumers to pay for goods and services by wire transfer, preloaded credit card or gift
card.
According to the Federal Trade Commission (FTC), it also is illegal for telemarketers to use unsigned checks called 'remotely created payment orders' to withdraw money directly from consumers' bank accounts.
These methods of payment are popular because they anonymize criminals. Untraceable payment methods are also demanded in the vast majority of cons, such as the IRS scam, the 'grandparent' ruse and other impostor swindles.
One form of payment that has grown in popularity involves payment by gift cards, and most recently, iTunes cards because of their popularity. Criminals quickly sell gift cards online or exchange them for cash. Some sell the cards to retailers and mall kiosks at a discount.
The FTC says the Telemarketing Sales Rule protects consumers in other ways, such as limiting what time of day telemarketers may call and with regulations regarding caller ID, which is often faked in illegal calls. The TSA changes also:
- Expand the advance-fee ban on recovery services to include losses both in prior telemarketing and non-telemarketing transactions, and,
- Require that a description of the goods or services purchased must be included in the tape recording of a consumer's express verifiable authorization to be charged.
Although the changes may not eliminate all illegal calls, consumers and businesses should keep in mind that demands for untraceable forms of payment are a clear sign that a caller is engaging in illegal activity.
You can find out more about how to protect yourself from scams at bbb.org/atlanta and file a complaint with the FTC online or by calling 1-877-382-4357. If the caller is an identifiable professional or business, you can file a complaint with Better Business Bureau.
