FOR RELEASE MONDAY, JULY 22, 1991 BASKING RIDGE, N.J. -- Thousands of American consumers are being ripped off every day by telephone con artists who trick them into revealing their calling card numbers or accepting long distance charges. AT&T is offering tips to consumers on how to avoid becoming a fraud victim. For starters, the company advises customers to be on the lookout for calling card number thieves in public places and to hang up on suspected telephone scam artists. The annual bill for telephone scams directed at consumers is estimated by industry experts at $1 billion. Saying the best defense against toll fraud is an educated consumer, AT&T is offering tips on how telephone customers can avoid two principal forms of fraud: Calling card and third- number billing scams. This telephone toll fraud occurs when someone places an illicit toll call by 1) charging the call to a stolen calling card number, or 2) tricking an innocent victim into accepting the toll charges. Calling Card Fraud Calling card thieves usually find their victims in busy public places such as bus, train or airline terminals. The victim can be any unsuspecting caller who makes a calling card call from a public phone. Frequently, card number thieves simply stand close to their victim in order to watch the calling card digits being entered on a touch-tone phone. If a caller verbally provides calling card information to an operator, the thief tries to listen in. A thief may even use binoculars to scan the numbers from the calling card or to watch as the victim punches in the calling card digits on a touch-tone phone. Some unwary customers receive a call at home from a fraud artist posing as a phone company or law enforcement investigator. The fraud artist requests the customer's calling card number and provides a phony explanation of a supposed toll fraud investigation or problems with the company's database that require investigators to "activate" the customer's calling card number. Customers should know that no telephone company--including AT&T, other long distance companies, and local phone companies-- would ever ask a customer for a calling card number or Personal Identification Number (PIN) over the telephone. Phone companies already have that information. After stealing calling card numbers, the thieves usually find an available public phone from which they sell discounted long- distance calls to locations around the world. Third-Number Billing Fraud A different toll fraud scam involves what AT&T officials have labeled the "Just Say Yes" scam, in which victims are convinced to accept charges for calls made by someone else. A thief impersonating an investigator calls the victim at home and asks for the customer's cooperation in a telephone company investigation. The thief always has a plausible explanation, such as a criminal investigation or service disruption problems. The victim is then asked to "just say yes" when the operator calls them to accept charges for a series of international calls. The imposter reassures the customer that they won't be billed for the calls. In some cases, victims are promised substantial credit or cash payment as an incentive to cooperate. If the customer is reluctant to cooperate, the imposter may try intimidation by threatening to cut off phone service. Everyone Pays Every day many innocent consumers become victims of telephone fraud. Customers should always protect the security of their calling card number. Customers should also know they are responsible if they willingly accept third-number charges. Because many of these charges are costly to collect, long distance companies lose millions of dollars to fraud every year. This drives up the cost of doing business, and as a result, all of the company's customers become victims of this crime. Telephone toll scam artists do not discriminate. Everyone is a potential victim, from corporate executives at the airport, to salesmen on the road, to teenage shoppers at the mall, to housewives, to home-bound elderly people. Calling Card Fraud Tips AT&T offers these tips to avoid calling card fraud: o Make sure no one can see you keying in your calling card number or overhear you reading the number to the operator. Whenever possible, use a phone that reads your calling card automatically. o Do not use your telephone calling card as identification for purchases. Use some other identification to avoid sharing your calling card number with a merchant. o Beware of individuals who call you at home requesting telephone calling card number verification. AT&T and other telephone companies will never ask for your card number over the phone. Your long distance and local phone companies already have that information in their billing records. o If you suspect that your telephone calling card has been lost, stolen or otherwise compromised report this immediately to your long distance company. The company will immediately cancel your calling card number and issue you a new card. AT&T customers may dial 1-800-CALL ATT. Third-Number Billing Fraud Tips Third-number billing fraud often occurs under the guise of an "investigation." AT&T has these tips on third-number billing fraud: o If you receive a call from anyone claiming to be a phone company or law enforcement investigator asking you to accept charges, simply hang up immediately. o Telephone companies or law enforcement officials will never call customers and ask them to accept collect or third-party charges as part of an investigation. o If you suspect you are a victim of third-number billing fraud, you should report this immediately by calling the number for billing inquiries that appears on your phone bill. # # # CONSUMER TIPS Telephone fraud is growing around the country both in public locations and even in the privacy of your own home. Thieves can steal your calling card number. Con artists may try to trick you into accepting international long distance charges. AT&T offers the following tips to consumers when calling from public phones: Calling Card Fraud Tips * Make sure no one can see you keying in your calling card number or overhear you reading the number to the operator. Whenever possible, use a phone that reads your calling card automatically. * Do not use your telephone calling card as identification for purchases. * Beware of individuals who call you at home requesting telephone calling card number verification. AT&T and other telephone companies will never ask for your card number over the phone; they already have that information in their billing records. * If you suspect that your telephone calling card has been lost, stolen or otherwise compromised report this immediately to your long distance company. The company will immediately cancel your card number and issue you a new card. AT&T customers may dial 1-800-CALL ATT. # # # AT&T offers these tips for customers who may receive suspicious calls at home from so-called "investigators": Third-Number Billing Fraud Tips * If you receive a call from anyone claiming to be a phone company or law enforcement investigator asking you to accept charges, simply hang up immediately. * Telephone companies or law enforcement officials will never call customers and ask them to accept collect or third-party charges as part of an investigation. * If you suspect you are a victim of third-number billing fraud, you should report this immediately by calling the number for billing inquiries that appears on your phone bill. # # #