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FTC 'Operation Tele-phoney' Targets Con Artists

CHICAGO (CBS) ― Telemarketing fraud has been around for quite some time, but it's gotten more brazen and seniors are now prime targets.

The Federal Trade Commission is taking direct aim at the con artists in "Operation Tele-phoney." As CBS station WBBM-TV in Chicago reports, the new campaign includes an educational video on how not to become a victim of scams.

In it the federal trade commission or FTC warns "telemarketing fraud affects millions of Americans each year."

Amy Shunk, 82, was one victim. Not too long ago, she got a call from Canadian-based union Consumer Benefits. It's one of 13 operations targeted in an FTC sweep.

"People have learned they can hide behind borders and pick someone's wallet in a different country," said C. Steven Baker, the FTC's Midwest Region Director. "We estimate those 13 companies have ripped off half a million consumers out of more than $100 million collectively."

Shunk says her case began when the person on the line offered to help her with her medical bills, as long as she gave up her checking account number.

The telemarketer kept pressing for an authorization.

'They try to keep tapes so they can -- if pressed -- show supposedly people authorized them," Baker said.

Shunk didn't give out her account but she got a phony medical discount card in the mail. Then she says she discovered Union Consumer stole hundreds anyway.

She's fortunate -- she has a persistent daughter-in-law who eventually got the money back.

Who knows how many people tried, but failed.

The FTC hopes to help them and keep it from happening again, so it filed in federal court and produced that prevention video.

One tip they give is if you get a call asking for money up front or bank account numbers, hang up.

They also suggest you get on the national "Do Not Call List."

If defendants in these cases are successfully prosecuted they could face as much as 20 years in prison.

(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)

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