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Tips for Older Americans to Recognize and Report a Telephone Scam

Telemarketing fraud affects millions of people every year, and many of these scams target older Americans. Scammer’s wares include worthless medical discount packages, costly trial offers, and phony prescription drug plans. The FTC offers these tips to help you determine a caller’s intentions and avoid these scams:

Misleading Medical Discount Packages

Some medical discount plans are legitimate ways to save money. But others claiming to provide big discounts from hundreds of providers for a wide range of services, from doctor visits and dental exams to hospital stays and prescription drugs, fail to make good on those claims. To make sure a discount plan isn’t just a waste of money:

Ask for a list of providers who participate in the plan.
Ask for a website where you can get more information. If your medical or dental providers don't participate, see whether other doctors in your area accept the plan and will give you the discount the plan promises.
Investigate the details of any plan carefully. Pay special attention to the refund policy.
Do the math. Try to calculate what your total payment for a discount plan will be for a given amount of time.
Call your local consumer protection office, state Attorney General, or Better Business Bureau to find out whether other consumers have complained about the business offering the discount plan.

Prescription Drug Plan Pressure

Scam artists claiming to represent Medicare Part D prescription drug plans may call and talk to you about a plan. But what they really want is personal information they can use to steal your identity. Or, sometimes actual plan providers call and use high-pressure sales tactics or make false claims to sign you up for a plan that may not even cover the drugs you take. If you’re considering a Part D pitch, you should:

Know the rules. The law spells out what Medicare Part D providers may and may not do. For example, they can’t ask you for payment over the phone or charge you a fee to enroll in a plan. If a caller breaks these rules or makes you uncomfortable, end the call.
Keep all personal information safe. Don’t give it out until you’re sure that a company is working with Medicare and its product is approved by Medicare. That includes your credit card, bank account, Medicare, or Social Security number.

“Free” Trial Offers

Free trials may not end up free. You may be automatically enrolled in a program that you’re charged for later on, or find out you’ve agreed to pay for other products and services because you didn’t cancel your membership or subscription first. Before you sign up for a free trial, make sure you:

Pay close attention to the offer’s terms and conditions. Understand who you're dealing with and what you're agreeing to. By accepting the trial offer, you may be agreeing to let the company give your credit card account information to another seller or to charge you for products and services you didn’t order.
Take timely action to avoid future obligations. You may have to contact the company to cancel during the trial period to avoid receiving more goods or services. Or by not canceling, you may be agreeing to let the company enroll you in a membership, subscription, or service contract, and to charge the fees to your credit card.
Ask questions. Ask the person on the phone:
- Do you have to contact the company to avoid receiving more merchandise or services? Who do you contact to cancel? How can you cancel?
- Will you get other products with the free item? If so, will you have to pay for them or send them back if you don't want them? How long do you have to decide before they charge you for the item?
- How do you stop getting additional merchandise or services?
- Is there a membership fee? If so, is it refundable?
- Will the company automatically bill your credit card for anything?

The FTC’s new consumer education campaign — Who’s Calling? Recognize & Report Phone Fraud — uses videos, articles, and other resources to educate consumers about how to recognize telemarketing scams. To learn more about how to protect yourself from phone fraud and report a scam, visit ftc.gov/phonefraud. The website is also available in Spanish at ftc.gov/fraudetelefonico.

This article was developed by the FTC as part of its ongoing work to educate consumers about telemarketing fraud. It can be reprinted, posted, or adapted by any business, community, or social organization to help its members, employees, or audiences learn more about fraudulent telemarketing.

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