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Crooked telemarketers busted by the FTC

RIP-OFF ALERT: The FTC has announced the largest-ever bust of telemarketers as part of its “Operation Tele-PHONEY.”

Here’s the scoop: Scammers were trying to sell people all kinds of things over the phone, from advance fee loans to big savings on Rx to magazine subscriptions to household products for seniors. Though they were many independent telemarketers, the common thread here is that they all sought to get your checking account information. Once they had it, they would bill you and try to empty out your account.

The banking industry continues to have zero security in place for drafts on your account. A legitimate person trying to cash a hardcopy check will be put through the ringer at bank. But if you just have an account number and present a draft, they’ll pay it no questions asked. This is a true Achilles’ heel that can easily be exploited by criminals.

The takeaway is simple: Never give out your check routing number over the phone or on the web. Pay via money order if you’re dealing with a collection agency. Sure, you may pay a nominal fee to do so, but this is the only truly safe way to settle up your debt.

Hear the podcast: Listen  |Download

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What others are saying

  • All
    Very Good info.
  • Credit card rip-offs
    I purchase occassional items on the internet and always use a "virtual card". It is valid for only the one charge and expires immediately after the payment has been processed. Both Visa and Mastercard offer this virtual card ability.
  • Tele-PHONEY
    The only time I ever recall giving my check routing codes ON LINE is when filing my tax returns with the State of CT and the Feds.
  • junk mail
    I'm having more fun sending back the postage-paid envelopes from mostly banks sending me offers. I enclose coupons for stores or advertisements is monthly "Valpack" savings. Andy Rooney originally said to do this, as they have to pay more postage when the envelope comes back. I wait until I have a large stack and SEND THEM OFF!!
  • Federal Rebate Checks
    My husband and I have SS numbers ending in 96 and 98. How will we know if we have been skipped over? When do the rebates end? How can we ask the govt.?
  • Ibonds
    What happened to the rates on I Bonds which you raved about?
  • your check routing number over the phone or on the web.
    What do you do when opening up a bank account and wish to have money forwarded from one to another (such as an online banking system)?
  • stimulis check
    Why give familys money you are going to take back because they took the earned income credit on there 2007 income tax.Yes! they deducted it from the stimulis check. And I bet ther are going to make us pay tax on the full amount before deduction.
  • bank routing
    Regarding paying credit cards online. Don't they already have this information if you have been their customer and paying by check?
  • Clark's Takeaway
    Clark is right again. Pay an agency by MONEY ORDER. If you pay by personal check, the agency now has your bank accouunt # and routing # on file and WILL USE IT FOR FUTURE "COLLECTION ACTIVITY". It is legal.

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This week's poll
Which of these recent rip-off alerts shocked you the most?
Campuses taking kickbacks from health insurers.
AT&T settling a lawsuit over 3rd party billing charges.
Online loans coming with interest rates as high as 2,000%.
Scamsters pretending to collect funds for flood-relief charities.
All of the above.
None of the above.
see previous polls


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