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Using a call center to educate seniors about financial fraud

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Abstract: 

Every year Americans lose over 40 billion dollars to telemarketing, investment, and charity fraud. Research has shown that using peer mentors to deliver prevention messaging is an effective strategy in reducing victimization for older consumers (AARP Foundation, 2003). An RSVP program in Los Angeles uses an outbound call center to educate vulnerable seniors about protecting themselves from fraudulent practices. This program was highlighted in the August 2005 issue of the National Service News, published by the Corporation for National and Community Service.

Issue

Many seniors lack pertinent information about — and are specifically targeted by — fraudulent telemarketing and other financial scams.

Action

Many fraudulent financial schemes, such as those using telemarketing, the internet, and investment seminars, specifically target older citizens because (a) they often have financial resources, and (b) they often respond in a friendly, polite manner. Not all older victims are isolated or lonely; many are active people who can be lured by great-sounding deals.
 
The Telemarketing Victim Call Center (TVCC) is an innovative program that represents a partnership with senior RSVP volunteers, law enforcement, AARP, and WISE Senior Services. Each week, volunteers gather to contact known victims of telemarketing fraud to present a message about prevention, to educate victims about the signs of illegal telemarketing fraud, and to gather information for law enforcement.
 
Modeled on a "boiler room" where criminals gather to prey on their victims through telephone solicitations, the TVCC reverses the criminal process with the following practices.
 
Using lists of victims' names that have been found in telemarketing fraud investigations, the RSVP volunteers:

  • Call potential victims who have been identified as targets of boiler room operations, following a one-page script that is designed to engage and educate victims. See examples of scripts in Off the Hook (Appendix B-1 to B-6).
  • Warn potential victims regarding the risks associated with sending money or giving personal or financial information to anyone they do not know personally.
  • Advise potential victims about warning signs of fraud, such as being pressured to wire money, or of offers to have a courier pick up a check or money order.
  • Offer a fraud prevention kit.
  • Provide fraud prevention resources, including the telephone numbers of the National Fraud Information Center and the local telephone number of the nearest FBI office.
Outcome

In addition to providing resources and peer counseling to the elderly victims of telemarketing fraud, RSVP volunteers also collect information for law enforcement. Volunteers ask about current solicitations and enter pertinent information on suspicious-activity forms. They then forward this information to the FBI where it is entered into a national database.
 
As the volunteers' skills have increased, they have taken on more advanced interventions. Messages have been tested for effectiveness at influencing victims to be more alert regarding telephone solicitations that may be scams. A grant from the U.S. Department of Justice funded the research, which revealed that using peer mentors to deliver prevention messages was an effective strategy in reducing victimization for older consumers (AARP Foundation, 2003).

Evidence

The RSVP volunteers at TVCC make an average of 530 calls a day, with more than 160,000 calls placed since TVCC opened in 1998. Using suspicious-activity forms provided by RSVP volunteers, the FBI reports that, on average, the TVCC identifies between 100 and 125 previously unknown operations each year ("Hearing," 2005).

For more information
Citations: 

AARP Foundation. (2003). Off the hook: Reducing participation in telemarketing fraud. Washington, DC: Author. Retrieved from http://assets.aarp.org/rgcenter/consume/d17812_fraud.pdf

Hearing before the Special Committee on Aging, United States Senate. (2005, July 27). Old scams, new victims: Breaking the cycle of victimization (Serial No. 109-13). Retrieved from http://aging.senate.gov/publications/7272005.pdf

Wise senior services telemarketing victim call center. (2005, August). National Service News, 217. Retrieved from http://www.nationalservice.gov/about/newsroom/nsn.asp?tbl_nsn_id=2


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