How to Recognize Fraudulent Calls Offering Financial Products

Financial_productsThe majority of unsolicited telephone calls come from financial institutions, while the Payment Protection Insurance (PPI) is the most common financial product offered through telemarketing. After that you can come across debt collecting offers and loans. Besides to financial companies you will most likely receive an unsolicited phone call from telecommunication operators and energy suppliers. The rest of the telemarketing is usually from companies offering various goods.

From all the unsolicited calls offering financial products, only about 5 % are conducted by banks or insurance companies itself. About 85 % of the calls come from call centers, thus they are also legitimate but the quality of information provided is lower. About 10 % of calls appear and disappear quickly. These are fraudulent calls searching for credit card details, insurance numbers or account numbers.

There are typically three areas of financial products that, if not legal, can mean a loss of finances for anybody drawn into them.

In this post, SHOULDIANSWER will list those three, most frequent types of financial frauds, and also show, how close is any sham offer to the lawful one and also how the lawful offers can balance at the edge of legality.

You might get some good product or a service through telemarketing, but there is much higher possibility it will not be that good or that it will even show up, it goes about a sham. If the offer would be new and sound good to you, it is always better to gain more information from some other sources, than to accept it straight away. Let’s look at the pitfalls of such telephone bids:

 

1. Payment Protection Insurance (PPI) and Insurance

Basics: Companies offering various insurance products

Edge: Call center staffs usually do not know Terms and Conditions of the product they offer

To increase the number of agreements concluded, insurance companies hire call centers. But the call centers’ staffs usually do not know all information about the product or the service they market. Lack of knowledge of the General Terms and Conditions may lead to a misunderstanding on the client side and accepting products that the client will not be satisfied with.

Fraud call: Fraudsters usually offer an insurance against inability to pay for mortgage. The conditions of their agreements are usually very attractive, but they are solely focused on getting personal information.

Insurance companies can call you with offer for providing all the legit stuff around your insurance claim such as applying for money from insurance, solving dissatisfaction with receivable from insurance company and more stuff around insurance claims in general. Scammers can call that they will claim some money for you somewhere, but the true reason for their phone call is again your personal data.

 

  1. Debt Collecting

27954157_sBasics: Companies combining more loans into one to lower the total installment

Edge: Debt collecting agents have tendency to offer products based on commissions

Debt collecting companies set up a meeting with some of their agents; it might be arranged on some other, neutral place than your home is. The agents usually offer financial products from which the debt collecting company have better commissions, so even if it is a legitimate business, it does not have to be always advantageous for the client itself.

Fraud call: The fraudulent part of the otherwise legitimate offer, tries to gain recipients account number. The caller claims, he does not need to meet you, as they can get information on you from their records or from bank register.

 

  1. Loans and Other Financial Products

Basics: Companies offering extraordinary good conditions on loans

Edge: Financial advisors offer agreements with lower loan rates but some hidden conditions

When signing a new loan to refinance your old one, double check all changes the agreement, not only the rate. You can either find out, that your fix time was prolonged, or that you will have to pay some extra fee for your account maintenance.

Fraud call: Unsolicited phone calls focus on older clientele, on people of retirement age. These people usually get something they did not want. In the United States, a caller was calling with an offer from the State Fund Reserves, telling the called party that the fund put aside some money for the called, and that the only thing he has to do to withdraw the money is to provide account information.

 

10% of the all the above calls

proposing either attractive PPI, favorable debt collections or very low rates on loans

have one in common:

to gain your personal data.

 

Where do the call centers obtain the databases? Insurance groups or financial institutions usually contract a call center and the call center exchanges its database with some other call center. In the worse scenario, legal company databases are even interconnected with call centers, so the call centers get the information right in time.

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A child was born; his personal identification number is inserted into a database accessible to a call center and the call center calls to his parents, if you they already made a contract with some insurance company.

Do not provide anyone with your personal data which can be misused!

 

In the United States, financial phone scams are well developed a few years already. Great Britain and France start to face this type of telephone scams more seriously as well. Countries fighting with debt crisis, such as Spain and Italy, starts to be prone to the debt collecting scams mainly.

No matter where you live, do not let scammers to profit on you. Download the SHOULDIANSWER application for free at Google Play and select, if you want to be informed about any incoming unsolicited phone call, or if you want those nuisance calls to be blocked straight away.