Telemarketing Fraud and Endorsement Research Paper

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telemarketing fraud so rampant?

The phone is increasingly being used "as a marketing tool and a vehicle for initial customer contact" (Michela, 1994, p. 556). Businesses make use of telemarketing applications in conducting political polling and market research, prospecting for new customers, making follow-ups on existing customers, advertising, raising charity funds, to mention but a few. Fraudsters take advantage of the increasing use of the phone and are aided by the belief that with almost every business conducting its activities through telemarketing; consumers would be in no position to differentiate legal from illegitimate causes. Moreover, telemarketing fraud is difficult to prevent and prosecute (NW3C, 2008).

Why is telemarketing fraud so difficult to prevent or prosecute?

The rip and tear operations of telemarketing fraudsters make their prosecution difficult (NW3C, 2008). Fraudulent telemarketers do not usually have definite offices, and mainly carry out their operations from mobile 'offices,' including hotel rooms (NW3C, 2008). Furthermore, the use of "rented mailboxes, disposable cell phones, and prepaid calling cards" in contacting their prospects makes their arrest and prosecution even more difficult (NW3C, 2008, p. 1).

What characteristics of the elderly make them attractive targets for perpetrators of phone fraud?

The elderly are thought to have significant assets in the form of savings and credit. Moreover, most of them own their own homes, and in most circumstances, live alone.

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Fraudsters capitalize on the fact that there may be no one around to recognize their illegitimate acts. Additionally, senior citizens are rather reluctant to report incidences of fraud, perhaps due to unawareness, intimidation by the fraudster, humiliation, or shame (Callaway & Becker, 2011). At the same time, since a senior's wealth is usually protected by a trusted family member or caregiver, they may be "reluctant to come forward for fear of being abandoned or creating family strife" (Callaway & Becker, 2011, p. 13). A third factor that makes the elderly an attractive target for phone fraud is the predictability of their schedules (Callaway & Becker, 2011). They often have rather predictable patterns; going to the store at the same time every other day, making their ATM withdrawals in a rather predictive fashion, and even storing their personal information, ATM cards, and wallets at the same place (Callaway & Becker, 2011).

What characteristics of large religious organizations make investigation difficult?

A number of factors make the investigation of religious organizations with questionable dealings difficult. To begin with, most of them are identified with legitimate, established religious organizations (NW3C, 2008). The Opus Dei Organization operating under the Catholic Church offers a perfect example. At the same….....

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