Legal Definitions - Phone and telemarketing fraud

Phone and Telemarketing Fraud

Phone and telemarketing fraud refers to deceptive schemes where criminals use telephone calls to trick individuals into giving up money, personal information, or financial details. These fraudsters often pose as legitimate entities, such as government agencies, reputable businesses, or charitable organizations, to gain trust and exploit their victims. The ultimate goal is typically to steal money, commit identity theft, or make unauthorized purchases.

Victims often find it challenging to distinguish between genuine calls and fraudulent ones, especially when scammers employ sophisticated tactics or target vulnerable individuals.

• Example 1: The Impersonated Government Agent

  An individual receives a phone call from someone claiming to be an agent from the Social Security Administration. The caller states that the individual's Social Security number has been compromised and used in criminal activity, threatening immediate arrest if a "fine" isn't paid immediately via gift cards or a wire transfer. The caller insists that the matter must be resolved over the phone to avoid legal action.

  This illustrates phone and telemarketing fraud because the criminal uses a telephone call to impersonate a government authority, creating fear and urgency to coerce the victim into sending money under false pretenses. The intent is to steal funds by deception.

• Example 2: The Fake Tech Support Call

  A person answers a call from someone claiming to be a technical support representative from a major software company. The caller states that their computer has detected a critical virus or security breach and offers to fix it remotely. They then persuade the victim to grant them remote access to their computer and pay a significant fee for "repairs" or "antivirus software" that is either unnecessary, fake, or malicious.

  This is an example of phone and telemarketing fraud because the scammer uses the phone to impersonate a legitimate company, fabricating a problem to trick the victim into paying for non-existent services or installing harmful software, thereby defrauding them of money and potentially compromising their computer security.

• Example 3: The Emergency Grandchild Scam

  An elderly woman receives a frantic phone call from someone who sounds like her grandson, claiming to be in an urgent situation—perhaps arrested abroad or needing emergency medical treatment—and desperately needs money wired immediately for bail or hospital bills. The caller specifically asks her not to tell his parents or anyone else, emphasizing the urgency and secrecy of the situation.

  This demonstrates phone and telemarketing fraud as the criminal uses the telephone to impersonate a family member, exploiting emotional ties and creating a sense of emergency to pressure the victim into sending money under false pretenses, with the intent of stealing her funds.