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Phone Scams from Authorized Agents
Though
technically
not
scams, phone scams from authorized agents are, at the very least,
ethically questionnable. And, of course, could end up costing
your business thousands of dollars.
How it Works
An authorized agent from a
service provider
calls a customer (usually business), and tells them that their contract
has expired, and that they need to renew
the contract TODAY or they may lose phone service. They then fax
the business new paperwork to be filled out.
Since most people answering the call have no clue when the phone
contract expires, they take the word of the agent and proceed to fill
out the paperwork to renew the contract.
The agent uses the name of the service provider to lend authenticity to
their claims. They reiterate that they are an authorized agent for the
provider.
What the Victim
Doesn't Know
Most service providers have "windows"
for contract renewal. This
means the customer can renew a contract anytime within a certain
timeframe of the contract expiration (for example, last 12 months of
contract).
The agent calls customers who are within the window for renewal and
scares them into signing a new contract (because most people have no
idea when their contract expires). This is so the
agent can get
the commission from the renewal.
This particular scam has been tried
on at least two of our own clients,
and fortunately they called us before they signed anything.
It's not that signing the contract would be wrong, but in
neither case that we were involved with did the agent offer the best
deal
or promotion that was available to our clients. One of our
clients
would have actually spent MORE
money per month for the same service, rather than getting a special
promotion that saved him an additional 15% on his phone bill.
It's simply not in the interest of the unethical agent to give the best
deal, because that means they lose out on commission money.
Phone Scams from
Authorized Agents - How to Protect Yourself and Your Business
- If someone calls claiming to be
an "authorized
agent" that you've never had a business relationship with, don't
believe what they tell you, particularly if they convey a sense of
urgency.
- If you work with a
telecommunications
consultant, notify them of the offer and find out if what the agent is
telling you is true.
- If you don't know a
telecommunications
consultant, call the service provider and find out the following:
- When your contract really expires
- What promotions or deals
you're eligible for
(if it's better than what you have now, you may want to go ahead and
renew in order to take advantage of the savings, but you will have to
agree to a new contract term)
- Make sure your employees know
about this scheme
- Use the services of only
reputable agents that
you have developed working relationships with
Phone
scams from
authorized agents are very difficult to quantify or even catch, because
technically, the agent probably isn't breaking the law, and most
customers would have no idea that they aren't being offered a good
deal, or that their contract is not expriring.
If
you are the victim of a scam, be sure to report the incident to:
- Your local law enforcement
agency - if the
agent misrepresents any information to you (i.e. contract expiration),
you may consider calling the authorities
- Your phone company - they need
to know that
their company is being misrepresented
- Your state's Public Utilities
Commission
- The FCC
complaint site.
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