A more thorough explanation:

Phone and telemarketing fraud is a type of scam where a criminal communicates with a victim over the phone to obtain their credit card information or identity. They then use this information to make unauthorized purchases. It is difficult for victims to distinguish between reputable telemarketers and scam artists. This type of fraud often targets vulnerable populations such as the poor, elderly, and immigrants without strong English skills.

• Advanced Fee Scam: A criminal encourages a victim to advance large sums of money with the promise of a large rate of return. One example is the Nigerian Letter scam where the criminal poses as a Nigerian prince and asks for credit card information to purchase travel tickets. The victim never receives any money and the criminal makes unauthorized purchases.
• Pyramid Scheme: A victim pays an initial sum of money and is promised a return from a number of different people that will exponentially increase the initial investment. Those at the bottom of the scheme receive no return.
• Overpayment Telemarketing Scheme: A criminal poses as a legitimate business and sends a fake check to the victim. They then ask the victim to wire back the extra money, which the criminal takes. The victim cannot cash the fake check or recover the wired money.
• Charity Scam: A criminal poses as a representative of a charity and asks for a donation over the phone. They then take the credit card information and make unauthorized purchases.

These examples illustrate how criminals use the phone to deceive victims into giving out their personal information or money. It is important to be cautious when receiving unsolicited phone calls and to never give out personal information or money over the phone unless you are certain it is a legitimate transaction.