BETTER BUSINESS BUREAU WARNS of FRAUDULENT CAlls TO CONSUMERS ABOUT Insurance coverage
December 12, 2008 St. John’s, NL – This week the BBB has learned consumers are receiving telephone calls that attempt to scare them into giving out their credit card number. Calls made to homes all over the province, claim that the insurance coverage of the consumer is about to expire, and to avoid loss of coverage simply supply the caller with a valid credit card account number.
Communication with Accredited Businesses of the BBB that operate in the insurance industry confirm that the calls are not coming from them, and indicate they are pre-recorded, employing the use of an automated dialer. Based on conversations with both representatives of the insurance industry and the intended victims, it appears that once any resistance is shown by consumers the caller hangs up, further evidence that this is not a legitimate call.
Once again we are seeing an example of schemers posing a seemingly plausible situation to the unsuspecting, in order to motivate consumers to act without giving them the opportunity to verify the information they are getting, or to consider the unlikely hood of such a situation. Typically an insurance agent would send you written notification of the impending expiration of your insurance policy, and give you a reasonable amount of time to update it. They would not call you without identifying themselves and the firm they represent very early in the conversation.
The use of auto dialers is not new to this area, we have heard reports of their use in everything to fake free trips, surveys and more recently, fake auto warranty expiration calls. Auto dialers invite the recipients “to learn more by pressing 1” or some other button on the touch-tone telephone. The BBB wishes to once again remind the public that following any instruction during an inbound call is never a good idea. “The best defense is to form good telephone habits,” said Lisa Riggs executive director of the BBB serving Newfoundland & Labrador, “Never answer any questions, neither confirm nor deny information, when someone calls you. It is especially important to remember to not push those buttons – no matter how curious you may be,” said Riggs.
Consumers, and insurance agents have been reporting various telephone numbers, collected from caller ID, indicating that there may be more than one source of these calls or, “Consumers also need to remember that they cannot rely on their call display to determine with absolute certainty who is calling, as the display can be manipulated by the caller,” said Riggs.
Consumers need to remember that during an inbound telephone call it is imperative that you never give out any personal information such as a credit card account number, or even verify your address, date of birth or any other personal details. The Better Business Bureau reminds the consuming public to always use common sense and avoid any rash purchase decisions. Riggs adds, “Remember the BBB is a resource that is available for everyone’s use. If you receive a call and are not sure if you should trust the caller, ask for their contact information and contact the BBB to check out the company, before you give them any money, or information.”
-30-
As a non-profit organization, the purpose of the Better Business Bureau is to promote an ethical marketplace. BBBs help resolve buyer/seller complaints by means of conciliation, mediation and arbitration. BBBs develop and issue reports on businesses and nonprofit organizations and encourage people to check out a company with the BBB or charity before making a purchase or donation.