Federal Trade Commission | consumer.ftc.gov

Phone Scams

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Every year, thousands of people lose money to telephone scams — from a few 

dollars to their life savings. Scammers will 

say anything to cheat people out of money. 

Some seem very friendly — calling you by 

your first name, making small talk, and 

asking about your family. They may claim to 

work for a company you trust, or they may 

send mail or place ads to convince you to 

call them. 

If you get a call from someone you don’t 

know who is trying to sell you something 

you hadn’t planned to buy, say “No thanks.” 

And, if they pressure you about giving up 

personal information — like your credit card 

or Social Security number — it’s likely a scam. 

Hang up and report it to the Federal Trade 

Commission at ftc.gov/complaint.
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Signs of a Scam

Often, scammers who operate by phone don’t want to give 

you time to think about their pitch; they just want you to 

say “yes.” But some are so cunning that, even if you ask 

for more information, they seem happy to comply. They 

may direct you to a website or otherwise send information 

featuring “satisfied customers.” These customers, known as 

shills, are likely as fake as their praise for the company. 

Here are a few red flags to help you spot telemarketing 

scams. If you hear a line that sounds like this, say “no, 

thank you,” hang up, and file a complaint with the FTC at 

www.ftc.gov/complaint:

● You’ve been specially selected (for this offer).

● You’ll get a free bonus if you buy our product.

● You’ve won one of five valuable prizes.

● You’ve won big money in a foreign lottery.

● This investment is low risk and provides a higher 

return than you can get anywhere else.

● You have to make up your mind right away.

● You trust me, right?

● You don’t need to check our company with anyone.

● We’ll just put the shipping and handling charges on 

your credit card.
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Join the National Do Not Call List

Register your home and mobile phone numbers with 

the National Do Not Call Registry. This won’t stop all 

unsolicited calls, but it will stop most. 

If your number is on the registry and you still get calls, 

they’re probably from scammers ignoring the law. Hang 

up, and report them at donotcall.gov.

How They Hook You

Scammers use exaggerated — or even fake — prizes, 

products or services as bait. Some may call you, but others 

will use mail, texts, or ads to get you to call them for more 

details. Here are a few examples of “offers” you might get:

● Travel Packages. “Free” or “low cost” vacations can 

end up cost¬ing a bundle in hidden costs. Some of 

these vacations never take place, even after you’ve 

paid.

● Credit and loans. Advance fee loans, payday loans, 

credit card protection, and offers to lower your 

credit card interest rates are very popular schemes, 

especially during a down economy.

● Sham or exaggerated business and investment 

opportunities. Promoters of these have made 

millions of dollars. Scammers rely on the fact that 

business and investing can be complicated and that 

most people don’t research the investment.
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● Charitable causes. Urgent requests for recent 

disaster relief efforts are especially common on the 

phone.

● High-stakes foreign lotteries. These pitches are 

against the law, which prohibits the cross-border 

sale or purchase of lottery tickets by phone or mail. 

What’s more, you may never see a ticket.

● Extended car warranties. Scammers find out what 

kind of car you drive, and when you bought it so 

they can urge you to buy overpriced — or worthless 

— plans.

● “Free” trial offers. Some companies use free 

trials to sign you up for products — sometimes lots 

of products — which can cost you lots of money 

because they bill you every month until you cancel. 

Why They’re Calling You

Everyone’s a potential target. Fraud isn’t limited to race, 

ethnic back¬ground, gender, age, education, or income. 

That said, some scams seem to concentrate in certain 

groups. For example, older people may be targeted because 

the caller assumes they may live alone, have a nest egg, or 

may be more polite toward strangers.
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How to Handle an Unexpected Sales Call

Questions to Ask

When you get a call from a telemarketer, ask yourself:

● Who’s calling... and why? The law says 

telemarketers must tell you it’s a sales call, the name 

of the seller and what they’re selling before they 

make their pitch. If you don’t hear this information, 

say “no thanks,” and get off the phone.

● What’s the hurry? Fast talkers who use high 

pressure tactics could be hiding something. Take your 

time. Most legitimate businesses will give you time 

and written information about an offer before asking 

you to commit to a purchase.

● If it’s free, why are they asking me to pay? 

Question fees you need to pay to redeem a prize or 

gift. Free is free. If you have to pay, it’s a purchase — 

not a prize or a gift.

● 	Why am I “confirming” my account information

— or giving it out? Some callers have your billing 

information before they call you. They’re trying to 

get you to say “okay” so they can claim you approved 

a charge.

● What time is it? The law allows telemarketers to call 

only between 8 am and 9 pm. A seller calling earlier 

or later is ignoring the law.

● Do I want more calls like this one? If you don’t 

want a business to call you again, say so and register 

your phone number on the National Do Not Call 

Registry. If they call back, they’re breaking the law.
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Some Additional Guidelines

● Resist pressure to make a decision immediately.

● Keep your credit card, checking account, or Social 

Security numbers to yourself. Don’t tell them to 

callers you don’t know — even if they ask you to 

“confirm” this information. That’s a trick.

● Don’t pay for something just because you’ll get a 

“free gift.”

● Get all information in writing before you agree to 

buy.

● Check out a charity before you give. Ask how much 

of your donation actually goes to the charity. Ask the 

caller to send you written informa¬tion so you can 

make an informed decision without being pressured, 

rushed, or guilted into it.

● If the offer is an investment, check with your state 

securities regulator to see if the offer — and the 

offeror — are properly registered.

● Don’t send cash by messenger, overnight mail, or 

money transfer. If you use cash or a money transfer 

— rather than a credit card — you may lose your 

right to dispute fraudulent charges. The money will 

be gone.

● Don’t agree to any offer for which you have to pay 

a “registration” or “shipping” fee to get a prize or a 

gift.

● Research offers with your consumer protection 

agency or state Attorney General’s office before you 

agree to send money.
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● Beware of offers to “help” you recover money you 

have already lost. Callers that say they are law 

enforcement officers who will help you get your 

money back “for a fee” are scammers.

● Report any caller who is rude or abusive, even if you 

already sent them money. They’ll want more. Call 

1-877-FTC-HELP or visit ftc.gov/complaint.

What To Do About Pre-Recorded Calls

If you answer the phone and hear a recorded message 

instead of a live person, it’s a robocall. Recorded messages 

that are trying to sell you something are generally illegal 

unless you have given the company written permission to 

call you.

If you get a robocall:

● Hang up the phone. Don’t press 1 to speak to a live 

operator or any other key to take your number off the 

list. If you respond by pressing any number, it will 

probably just lead to more robocalls.

● Consider asking your phone company whether they 

charge for blocking phone numbers. Remember that 

telemarketers change Caller ID information easily 

and often, so it might not be worth paying a fee to 

block a number that will change.

● Report your experience to the FTC online or by 

calling 1-888-382-1222.

If you get phone service through internet or cable, you 

might want to look into services that screen and block 

robocalls. Try doing an online search for “block robocalls.”
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For More Information

For more information about specific scams and topics, 

check out these FTC resources:

● ftc.gov/scams

● ftc.gov/robocalls

● ftc.gov/charityfraud

● ftc.gov/travelscams

● ftc.gov/bizopps

The FTC works to prevent fraudulent, deceptive and 

unfair business practices in the marketplace and to provide 

information to help consumers spot, stop and avoid them. 

To file a complaint or get free information on consumer 

issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP 

(1-877-382-4357); TTY: 1-866-653-4261. 

Watch a video, How to File a Complaint, at 

consumer.ftc.gov/media to learn more. The FTC enters 

consumer complaints into the Consumer Sentinel Network, 

a secure online database and investigative tool used by 

hundreds of civil and criminal law enforcement agencies in 

the U.S. and abroad. 

Federal Trade Commission

consumer.ftc.gov

February 2014