Reloading scam

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Reloading is a form of fraud, whereby a victim of one scam is repeatedly approached with more aggressive con artists, often until "sucked dry". This form of fraud is especially hurtful for senior people, because they are more susceptible to pressure after the first losses, partly because of hopes to recover, partly being psychologically unable to say "no" to a con man in time.

This form is widespread because people who become victims of, for example, a telemarketing fraud, often are placed on a sucker list. Sucker lists, which include names, addresses, phone numbers, and other information, are created, bought, and sold by some fraudulent telemarketers. They are considered invaluable because dishonest promoters know that consumers who have been tricked once are likely to be tricked again.

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[edit] How the scam works

Double scammers, known as reloaders, use several methods to repeatedly victimize consumers. For example, if they have lost money to a fraudulent telemarketing scheme, they may get a call from someone claiming to work for a government agency, private company, or consumer organization that could recover their lost money, product, or prize—for a fee. The catch is that the second caller is often as phony as the first, and may even work for the company that took their money in the first place. If they pay the recovery fee, they have been double-scammed.

Some local government agencies and consumer organizations do provide help to consumers who have lost money to fraudulent promoters. Fortunately, there's a way to tell whether the caller offering help is legitimate: If they ask you to pay a fee or if they guarantee to get your money back, it is fraud.

Another reloading scam uses prize incentives to convince a person to continue buying merchandise. If they buy, they may get a second call claiming they are eligible to win a more valuable prize. The second caller makes them think that buying more merchandise increases their chances of winning. If they take the bait, they may be called yet again with the same sales pitch. The only difference is that the caller now claims that they are a "grand prize" finalist and, if they buy even more, they could win the "grand prize."

Fraudulent promoters involved in reloading scams want payment as quickly as possible—usually by credit card or a cheque delivered to them by courier. Often, it takes at least several weeks to receive products and prizes. When they do arrive, buyers often find that they have overpaid for shoddy goods, and that they did not win the "grand prize" at all. Unfortunately, their credit card has long since been charged or their cheque cashed.

[edit] Protection

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The Federal Trade Commission and other agencies recommend to beware of people who claim to work for companies, consumer organizations, or government agencies that recover money for a fee. Legitimate organizations, such as national, state, and local consumer enforcement agencies and non-profit organizations, like the National Fraud Information Center (NFIC) or Call For Action (CFA), do not charge for their services or guarantee results. One must also be wary of promoters who contact you several times and urge you to buy more merchandise to increase your chances of winning valuable prizes. A number of other advices based on common sense may be found.

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[edit] External links

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