Seniors often sink their entire life savings into the investment offer, only to lose it all. Telemarketers may sell gemstones, rare coins, FCC licenses, oil wells, and stocks. The promise of high returns within a short period of time is used to entice the victims. Follow-up calls are made to investors in an attempt to get them to send more money. Once the consumer receives their purchase, if it is a tangible item, he discovers that it is either worthless, or worth far less than the cost of the purchase.
Investors discover that it is difficult to determine the status of their investment.
Those who do receive an accounting of their investment find it is impossible to decipher. Sometimes, as little as five percent of the money collected goes to the charity. Victims may be contacted by phone by telemarketers asking for money, or they may receive a mailing falsely informing them that they have given to the charity previously, or have pledged a certain amount of money over the phone. Many assume that what is stated in the mailing is true and send money, even though they have never given to the charity. Cramming involves billing customers for optional phone services that they did not order.