Every year, Nova Scotians lose hundreds of thousands of dollars to deceptive telemarketing scams or telefraud. The statistics are shocking. Victims of telefraud lose an average of more than $4,000. A new fraudulent telemarketing company is identified every 48 hours. The yearly loss in Canada is more than $80 million.

Alarmingly, two of every five Canadian victims are over 60 years of age. Of those, 67 per cent are women. What's more is that seniors represent the vast majority of those victimized more than once. Staggering as they are, these statistics are only the tip of the iceberg. Most telemarketing fraud is not reported.

What is Telefraud?

Telefraud involves using the phone to obtain payment for a non-existent or misrepresented product, service or charitable gift. It is using the phone to obtain private financial information or credit card numbers, or it is offering a prize for which you must pay. To put it simply, telefraud techniques vary but all involve using the telephone and dishonest means to obtain your money.

Most telephone sales calls are from honest businesses and charities, but there are some telemarketers who set out to defraud Nova Scotians. Consumers can protect themselves from being scammed.

How can I recognize the scam?

If the offer you're being told about is too good to be true, chances are it is. If you're told you've just won a big prize in a contest that you don't recall entering or you're offered a once-in-a-lifetime investment that offers a huge return, don't get too excited because it's probably a phony deal.

The caller tells you that you must pay or you can't play. First the caller will tell you that you've won a fabulous prize, but in order to receive it you must send money to cover the costs of shipping, handling, processing and taxes. Sometimes the caller will even send a courier to come pick up your money; however, you should never have to pay for a prize -- even a shipping cost.

Be wary of callers who ask for your financial information over the phone. Honest businesses only require this information if you are using a specific method of payment. If the caller says he or she is from your bank and needs to verify your account number and balance, or credit card number, hang up. Real bank employees would never ask for this kind of information because they already have it.

If you receive a call from someone who claims to be a government official, tax officer, banking official, lawyer or some other person of authority, be cautious. Often, deceptive telemarketers will impersonate authority figures to establish trust with their victim. Callers may strike victims a second time by pretending to be police officers or lawyers. They will claim they have recovered previous lost funds but that they will require a fee to return them.

What can I do to protect myself?

There are a few things you can do to protect yourself from becoming a victim of telefraud. First you must realize that not all telemarketers are fraudulent. There are many honest businesses and non-profit organizations who depend on telemarketing.

The most important thing to do when you receive a call from any telemarketer is to be cautious. Ask questions and investigate who you are talking to and what exactly they want. Legitimate businesses should have no trouble giving you all of the information you ask for. Request information like: the name of the company or person the caller works for; the type of product or business interest he or she is promoting; the purpose of the call; call-back numbers; references; a registration number; the request in writing and; time to think it over.

Once you have all of this information, you can check out the business or non-profit organization through the Nova Scotia Better Business Bureau, or Phonebusters.

Phonebusters is a national task force, established in 1993 to combat telemarketing fraud. It plays a key role in helping educate the public of specific fraudulent telemarketing pitches. If the caller is unable to provide you with any of this information, then you have every right to suspect something suspicious is going on. At that time you should immediately contact your local Police Department or Better Business Bureau.

Never give out your financial information over the phone unless you are the one who initiated the call or you are sure the caller is who they say they are. Recognize the signal of high-pressure sales tactics. Many fraudulent telemarketers won't take ‘no' for an answer. If you feel pressured or have any doubts about a caller, your best defence is to simply hang up. This is often necessary if the caller will not let their victim end the conversation politely. It's OK to just hang up. Remember that you are in control.