In recent years, telemarketing fraud has become an increasing problem in Canada. According to the Royal Canadian Mounted Police, “criminals use the same techniques as legitimate companies, but hide behind the anonymity of the telephone and attempt to defraud thousands and thousands of Canadians each year.”
There are at least several hundred fraudulent telemarketing operations in North America that routinely seek to defraud consumers in Canada and the U.S. Let’s take a look at some additional facts.
Telemarketing Fraud Facts:
As a result of the telemarketing industry, there is an overall loss of $3,827,880, in addition to the average consumer loss at $1,174. According to Private Citizen, telemarketers place 148 million junk calls a day. Back in 2000, the Direct Marketing Association received a record of 3,789 telemarketing complaints in one 35-day period!
Telemarketing is a nearly $500 billion a year business, and investment scams alone amount to losses of $1 million an hour. Additionally, charities make more money from selling your name and number (aka. “sucker lists”) to other telemarketing companies than from the donations they collect from calling.
On average, only 24% of what consumers donate in response to a telemarketing sales call actually reach the intended charity.
There are a variety of payment methods that telemarketers use to profit from their scam(s). Bank debit accounts for 23% of these scams, in addition to: credit card: 21%; money order: 14%; wire: 9%; debit card: 5%; telephone bill: 2%; cashier’s check: 2%.
Initial contact is made across a multitude of communication platforms. Overall, phone contact was the highest form at 44%, along with: mail: 37%; print:15%; fax: 2%; in-person:1%; tv/radio: 1%.
20% of scam victims are 30 years old and younger. Additionally, 54% of victims were between the ages of 30–60, and 36% were 60 years and older.
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