Guard Against the Rising Threat of Telephone Scams

Mar 30
01:16

2024

David McDonough

David McDonough

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Telephone scams, particularly "slamming," where your long-distance carrier is switched without consent, are not just deceptive and illegal—they're also costly. The National Consumers League reports that slamming is the fifth most reported telemarketing incident, with an estimated annual cost to consumers exceeding $100 million. Understanding the tactics used by scammers and knowing how to protect yourself is crucial in this era of increasing telephone fraud.

The Mechanics of Slamming

Slamming can occur in various ways,Guard Against the Rising Threat of Telephone Scams Articles often catching consumers off guard. Here are some common scenarios:

Scenario 1: The Unsolicited Telemarketer Call

A telemarketer may call, offering to switch your long-distance service. Even if you decline, they might proceed with the switch without your permission.

Scenario 2: The Deceptive Check

You might receive a check in the mail, which, upon signing and cashing, unknowingly enrolls you with a new long-distance carrier.

Scenario 3: The Contest Trap

Entering a contest could unexpectedly sign you up for a new long-distance service, as detailed in the fine print.

Other scenarios involve smaller companies that purchase telephone services from larger carriers at wholesale rates and resell them at retail prices. They may attempt to mislead customers by associating their services with those of a well-known carrier.

Strategies to Prevent Slamming

To avoid becoming a victim of slamming, take the following steps:

  • Know Your Carrier: Be aware of your current long-distance carrier. Contact your local telephone company for this information.
  • Monitor Your Bills: Regularly check your telephone bills for any unexpected changes in your carrier or significant increases in charges.
  • Implement a Carrier Freeze: Request a "carrier freeze" from your local telephone company to prevent any switches without your direct consent.

What to Do If You've Been Slammed

If you discover you've been slammed:

  1. Contact your local telephone company immediately to revert to your original carrier at no extra cost.
  2. Inform your long-distance company about the incident to ensure your account is corrected and you're not charged for the slamming.

The FCC's new slamming rules, effective since November 28, 2000, ensure compensation for verified complaints. If you've been slammed and haven't paid the unauthorized carrier, you're not liable for services up to 30 days post-slam. If you've paid, you're entitled to a 50% reimbursement of all charges, with the unauthorized carrier required to pay 150% of all charges to your authorized carrier.

To report slamming or an unauthorized carrier switch, contact:

  • Attorney General: 1-800-282-0515 (toll-free)
  • FCC: 1-888-225-5322 (toll-free)

The Bigger Picture: Telephone Scam Statistics

While slamming is a significant issue, it's just one facet of the broader problem of telephone scams. According to the Federal Trade Commission (FTC), consumers reported losing $1.9 billion to fraud in 2019, with phone calls being the most common medium for fraudulent contact. The FTC also notes that while people aged 20-29 report losing money to fraud more often than those over 70, the latter group, when they do lose money, lose a much higher amount.

It's essential to stay vigilant and informed to protect yourself from these deceptive practices. By understanding the tactics used by scammers and taking proactive steps to safeguard your information, you can reduce the risk of falling victim to telephone scams.