State targets
telemarketing
fraud

Investigators will call people
to provide advice and
answer questions

By Rod Ohira
Star-Bulletin

State investigators will be on the telephone Tuesday providing information about telemarketing fraud to potential targets.

"Five investigators on Oahu and one from the Big Island are going to call about 500 people, tell them they may be targets and give them advice on what to look for and how to deal with it," said Jo Ann Uchida, executive director of the state Office of Consumer Protection.

The "reverse boiler room" strategy has been used successfully by the American Association of Retired Persons and several states to raise awareness about telemarketing fraud, Uchida added.

Investigators will call residents from 10 a.m. to noon and 1:30 p.m. to 3:30 p.m. They'll provide about five minutes of information and answer questions.

"We're trying to turn the tables and use the same vehicle as the fraudulent telemarketers," said Uchida, who noted that the FBI estimates fraudulent telemarketers represent 10 percent of the industry.

Uchida said investigators are working with a private list compiled from information obtained from mainland and local investigations.

The AARP estimates annual U.S. losses from telemarketing fraud at $40 billion. The elderly are primary targets. The crime is difficult to track because victims are reluctant to cooperate with authorities.

There are no statistics to measure the scope of the problem in Hawaii, but Uchida's office from February to August received 73 inquiries and requests for information/complaint forms.

Twenty-four of those cases involved fraudulent or deceptive magazine sweepstakes.

Most common telemarketing frauds involve winning a cash prize. Uchida said consumers should see a red flag when the caller asks for money to pay for taxes or handling charges.

"You should pay nothing if it's a prize," she said.

Telemarketing lists are compiled easily since information is readily available.

"Technology has caused the mushrooming of telemarketing fraud," Uchida said. "It's a lot easier to access files, and all someone needs is your credit card or a bank account number to wipe you out. These people are professionals who know how to get what they want. They can sound like your best friend."

Entries for prize drawings are among the sources of telemarketing lists, says Uchida.

"Anytime you provide a name, address and telephone number, all the information is cataloged," she added. "One that we traced involved a long-distance carrier switch.

"The consent for the switch was written in small print on the back of an entry blank that had a picture of a Corvette on the front. People should be wary when they sign up for something, and read the fine print in back."

Long-distance carrier switching now leads telemarketing complaints, Uchida says.

Paying off to get rid of a persistent telemarketing caller is the worst thing to do, says Uchida.

"They keep track of whether or not people sent money on their hot or 'mooch' list," Uchida said. "The more money you send, the higher on the list you are."

Under the unfair- or deceptive-practice law, fraudulent telemarketing is a crime. If convicted, a person in Hawaii can be fined up to $10,000 per violation. The penalty is doubled if the victim is a senior citizen, Uchida said.

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Don't be victimized

Tip-offs to telephone fraud You must act now or the offer won't be good.

You've won a free gift, vacation or prize, but you pay for postage, handling, taxes or other charges.

You must send money, give a credit card or bank account number or have a check picked up by courier before you have had a chance to consider the offer carefully.

You don't need to check out the company with anyone or need written information or references.

You're told you can't afford to miss this "high-profit, no-risk" offer.

cal,10p4 What to do Don't buy by phone from unfamiliar companies. Always ask and wait for written material on any offer, charity or expensive investment.

Take your time making a decision. Legitimate companies won't pressure you.

Never send money or give out credit card or bank account numbers to unfamiliar companies.

Who can help Office of Consumer Protection: Oahu, 586-2636; Maui, 984-8244; Big Island, 974-6230.