- cash-to-cash money transfers — like those from MoneyGram and Western Union
- PINs from cash reload cards like MoneyPak and Vanilla Reload
The Federal Trade Commission amended the Telemarketing Sales Rule (TSR) to ban these practices starting June 13, 2016. If a telemarketer asks you to use one of these payment methods, he’s breaking the law.
The amended Rule also bans telemarketers from calling to ask for your bank account information and using it to create a ‘remotely created check’ that you never see, or sign.
If a telemarketer you haven’t done business with calls to ask for your bank account number for any purpose, say ‘No’ and hang up.
You have other protections under the Rule, including:
- limits on when telemarketers can call and what they must tell you
- limits on “hang-up” calls and rules about transmitting caller ID
- limits on robocalls
- the National Do Not Call Registry
If you hear from telemarketers who don’t follow the rules, hang up and report them to the FTC.
As bankers, we know these rules are not going to stop all illegal telemarketing calls. What we do know is that if a telemarketer violates these rules then they are operating illegally. While these rules cannot stop all illegal telemarketing calls, what it can do is shine a bright spot light on the bad guys. Now you have concrete information to share with your customers on what is not permitted especially unlawful payment requests.
TRC Interactive’s First Line of Defense™ program offers interactive and engaging fraud training to help financial institutions identify and prevent fraud attempts. To learn more, visit http://trcinteractive.com/training-solutions/fraud-training.asp or contact us at either email@example.com or (800) 222-9909.