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BuyerZone's Definitive Phone Scam Guide

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Written by: BuyerZone Staff

It's been said that the moment Alexander Graham Bell made the first phone call on March 10th, 1876, someone started dreaming up the very first phone scam. (Pardon me, but is your ice box running? Well, it would be prudent if you would hasten after it) Today's phone scams have evolved from silly prank calls into fraudulent schemes to steal credit card information, social security numbers, and other sensitive information. Most common in the news are consumer scams, but business scams are just as prevalent. BuyerZone goes over major phone scams that you should watch out for.

Bank account phone scam

The Better Business Bureau is warning Southern Arizona businesses of an automated dialing scheme targeted specifically at businesses. Weeks or months prior to any communication, the hackers illicit personal information from the businesses. This is done by email or by scanning social networking sites, where personal info was erroneously posted. On the day of the strike, the hacker ties up the victim's phone lines, and then contacts their bank pretending to be the victim. Transactions are made, and the victim is powerless.

Source: Tuscon BBB Website

The "cramming" phone scam

You would think confirming a phone number and business address wouldn't amount to anything -- but that's how one business owner in Florida got charged for a computer service she never ordered. She saw the unauthorized charge on her company's phone bill the net month, and found out that the scammers recorded her voice, and edited the tape to make it appear that she was confirming the charges - when she was really confirming her business information. Cramming is one of the most prevalent, and increasing, offenses in the scammer world. It involves scammers charging for extra services that you never ordered -- usually in small amounts, so that it's hard for a victim to realize what's happening.

Source: MSNBC

The Make-a-Wish international phone scam

An ongoing, massive phone scam amounting to $20 million in stolen cash has been escalating in recent months. Mainly targeting the elderly, scammers call consumers falsely representing themselves as members of the IRS, the FTC, the US Treasury Department, or other US agencies. Fictitious sweepstakes prizes are awarded, to be claimed after the individual wires money to cover taxes and other fees via Western Union or Moneygram. This October, ABC News investigated that the calls are made from Costa Rica and via Internet software are disguised as US phone numbers.

Source: ABC News

The WestJet Canadian phone scam

Westjet Airlines, a budget airline company based in Canada, sent out a press release on October 21, 2010 of a national scam involving the company's name and services. Fraud artists have been dialing random Canadian phone numbers, informing individuals that they are eligible to win a prize after they purchase a product over the phone. Credit card information is requested at this point.

Source: WestJet.com

The Frontier Communications local business phone scam

On October 26, 2010 Frontier Communications announced that some of its business customers have been targeted by scammers posing as Frontier company representatives. The caller states that a change has been made to the customer's account, then asks for approval to change the customer's long distance carrier. Frontier advises that these calls are not legitimate and should not be taken as so.

Source: ReviewAtlas.com

The social networking phone scam

In October, there were several cases of elderly individuals experiencing phone scams in Canada and in the state of Arizona. The callers use Facebook as a tool to identify and contact an elderly relative of a family member who has status updated that they are on vacation. The caller informs the senior that their relative is in jail, and asks for an average of $4000 for bail. Because the elderly family member is often unable to reach their vacationing relative, the scam is usually successful.

Source: AllHeadlineNews.com

The best defense against phone scams is to stay alert for any requests for sensitive information. If you are asked for personal information such as your social security number, bank account number, credit card information, you should hang up and visit FTC.gov, where you can report the scam for investigation.

This guest post was written by editorial staff at BuyerZone.com. Learn why 8,500 companies are using BuyerZone for lead generating services.