Reloading scam
Encyclopedia
In a reloading scam, a victim is repeatedly approached by con artists, often until "sucked dry". This form of fraud is perpetrated on those more susceptible to pressure after the first losses, perhaps because of hopes to recover money previously invested, perhaps because of inability to say "no" to a con man.
The term has been current at least since 1923, when it was used to describe a specific repetitive stock fraud:
The term 'reloading' has since expanded to cover all repeated attempts to scam money from the same victim.
This form is widespread because people who become victims of, for example, a telemarketing
fraud
, often are placed on a sucker list
. Sucker lists, which include names, addresses, phone numbers and other information, are created, bought and sold by some fraudulent telemarketers. They are considered invaluable because dishonest promoters know that consumers who have been tricked once are likely to be tricked again.
Some local government agencies and consumer organisations really do provide help to consumers who have lost money to fraudulent promoters. Fortunately, there's a way to tell whether the caller offering help is legitimate: If they ask you to pay a fee or if they guarantee to get your money back, it is fraud.
Buyers of worthless shares of stock are sometimes approached with schemes to revive the original bankrupt companies. All the victim needs to do to save his original investment is to contribute so much per share. This throwing of good money after bad appeals to those reluctant to admit that they made a bad investment.
Another reloading scam uses prize incentives to convince a person to continue buying merchandise. If they buy, they may get a second call, claiming they are eligible to win a more valuable prize. The second caller makes them think that buying more merchandise increases their chances of winning. If they take the bait, they may be called yet again with the same sales pitch. The only difference is that the caller now claims that they are a "grand prize" finalist and, if they buy even more, they could win the "grand prize."
Fraudulent promoters involved in reloading scams want payment as quickly as possible—usually by credit card or a cheque delivered to them by courier. Often, it takes at least several weeks to receive products and prizes. When they do arrive, buyers often find that they have overpaid for shoddy goods, and that they did not win the "grand prize" at all. Unfortunately, their credit card has long since been charged or their cheque cashed.
and other agencies recommend to be wary of people who claim to work for companies, consumer organizations, or government agencies that recover money for a fee. Legitimate organizations, such as national, state, and local consumer enforcement agencies and non-profit organizations, like the National Fraud Information Center (NFIC) or Call For Action
(CFA), do not charge for their services or guarantee results. One must also be wary of promoters who contact you several times and urge you to buy more merchandise to increase your chances of winning valuable prizes. A number of other advices based on common sense may be found.
(OFT) are the main protectors of consumer issues. People in the UK are also able to be protected by the Telephone Preference Service
(TPS), as if they are subscribed to it, they should not receive unsolicited calls.
The term has been current at least since 1923, when it was used to describe a specific repetitive stock fraud:
- "To "reload" a holder of stock, he is approached with an offer to buy from him a larger block of the stock at a higher price than he paid, and about the same time the opportunity is given him to purchase more at the original offering price. When he has done so, he finds that the bid is an illusive one; it is now for a larger block, and if he buys still more stock in order to take advantage of it, it still keeps ahead of him."
The term 'reloading' has since expanded to cover all repeated attempts to scam money from the same victim.
This form is widespread because people who become victims of, for example, a telemarketing
Telemarketing
Telemarketing is a method of direct marketing in which a salesperson solicits prospective customers to buy products or services, either over the phone or through a subsequent face to face or Web conferencing appointment scheduled during the call.Telemarketing can also include recorded sales pitches...
fraud
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
, often are placed on a sucker list
Sucker list
A sucker list is a list of people who have previously been successfully solicited for something.The major areas of "sucker lists" are solicitation of donations and fraud....
. Sucker lists, which include names, addresses, phone numbers and other information, are created, bought and sold by some fraudulent telemarketers. They are considered invaluable because dishonest promoters know that consumers who have been tricked once are likely to be tricked again.
How the scam works
Double scammers, known as reloaders, use several methods to repeatedly victimise consumers. For example, if they have lost money to a fraudulent telemarketing scheme, they may get a call from someone claiming to work for a government agency, private company or consumer organisation that could recover their lost money, product or prize—for a fee. The catch is that the second caller is often as phony as the first and may even work for the company that took their money in the first place. If they pay the recovery fee, they have been double-scammed.Some local government agencies and consumer organisations really do provide help to consumers who have lost money to fraudulent promoters. Fortunately, there's a way to tell whether the caller offering help is legitimate: If they ask you to pay a fee or if they guarantee to get your money back, it is fraud.
Buyers of worthless shares of stock are sometimes approached with schemes to revive the original bankrupt companies. All the victim needs to do to save his original investment is to contribute so much per share. This throwing of good money after bad appeals to those reluctant to admit that they made a bad investment.
Another reloading scam uses prize incentives to convince a person to continue buying merchandise. If they buy, they may get a second call, claiming they are eligible to win a more valuable prize. The second caller makes them think that buying more merchandise increases their chances of winning. If they take the bait, they may be called yet again with the same sales pitch. The only difference is that the caller now claims that they are a "grand prize" finalist and, if they buy even more, they could win the "grand prize."
Fraudulent promoters involved in reloading scams want payment as quickly as possible—usually by credit card or a cheque delivered to them by courier. Often, it takes at least several weeks to receive products and prizes. When they do arrive, buyers often find that they have overpaid for shoddy goods, and that they did not win the "grand prize" at all. Unfortunately, their credit card has long since been charged or their cheque cashed.
In the USA
The Federal Trade CommissionFederal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
and other agencies recommend to be wary of people who claim to work for companies, consumer organizations, or government agencies that recover money for a fee. Legitimate organizations, such as national, state, and local consumer enforcement agencies and non-profit organizations, like the National Fraud Information Center (NFIC) or Call For Action
Call For Action
Call For Action is the name given to telephone "help lines" maintained by many radio stations in the United States, beginning in the 1960s and 1970s....
(CFA), do not charge for their services or guarantee results. One must also be wary of promoters who contact you several times and urge you to buy more merchandise to increase your chances of winning valuable prizes. A number of other advices based on common sense may be found.
In the UK
The Office of Fair TradingOffice of Fair Trading
The Office of Fair Trading is a not-for-profit and non-ministerial government department of the United Kingdom, established by the Fair Trading Act 1973, which enforces both consumer protection and competition law, acting as the UK's economic regulator...
(OFT) are the main protectors of consumer issues. People in the UK are also able to be protected by the Telephone Preference Service
Telephone Preference Service
The Telephone Preference Service is a UK opt-out telephone list that is intended to prevent telemarketing calls to those who do not wish to receive them. The list is administered on behalf of Ofcom by the British direct marketing industry, who also run the Mailing Preference Service and Fax...
(TPS), as if they are subscribed to it, they should not receive unsolicited calls.
External links
- Reloading of sweepstakes victims
- eximscammers.com This nonprofit website is a fraud and scam Complaint Center dedicated to serve as a vehicle to receive, record and publish fraud and scam complaints.