The Federal Trade Commission (FTC) is ramping up its efforts to combat scams following the closure of a major loophole in the law.
The agency states that the revised Telemarketing Sales Rule (TSR) will particularly benefit seniors, who are often targeted by fraudulent tech support calls…
Current Telemarketing Regulations
The existing law imposes several requirements on those making unsolicited sales calls. Telemarketers must:
- transmit their phone number and, if feasible, their name to your caller ID service
- promptly inform you which seller or charitable organization they represent and that the call is for sales or solicitation purposes
- disclose all significant information regarding the goods or services offered, including the sale terms
- obtain your consent prior to charging you or using any specified account number
They are prohibited from:
- calling before 8 a.m. or after 9 p.m. local time
- deceiving, abusing, or misleading you about any offer terms
- requesting payment via:
- cash-to-cash wire transfers (e.g., Western Union and MoneyGram)
- sharing the PIN from a cash reload card (e.g., MoneyPak and Vanilla Reload)
- providing bank account details to create a type of check known as a “remotely created payment order”
Significant Loophole Eliminated
Numerous tech support scams manipulate consumers into calling by employing pop-up alerts and other deceptive methods that claim their devices are compromised by malware, subsequently pushing for the purchase of fake tech support services. Such scams often convince callers to pay for unnecessary tech support to resolve nonexistent issues.
The regulations have now been amended to include incoming calls.
The Federal Trade Commission has finalized amendments to the Telemarketing Sales Rule extending its coverage to “inbound” telemarketing calls related to technical support services. This includes calls initiated by consumers responding to advertisements or direct mail solicitation regarding technical support services.
While scammers can face criminal charges for fraud, the TSR allows for enforcement actions even if victims do not fall prey to the scam. The act of soliciting payments through irreversible methods will now be outlawed.
The FTC emphasizes that this change aims to enhance protection for seniors specifically.
According to a recent FTC report to Congress, consumers aged 60 and older were five times more likely than younger individuals to report financial losses due to tech support scams, with older consumers detailing losses exceeding $175 million from such fraud last year.
You can contribute by educating friends and family members who may be less tech-savvy, alerting them to the perils of faux tech support calls.
Photo by Keith Tanner on Unsplash
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