[Congressional Record Volume 144, Number 51 (Thursday, April 30, 1998)]
[House]
[Pages H2696-H2697]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      MAIL FRAUD AND TELEMARKETING SCAMS TARGETING SENIOR CITIZENS

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Hawaii (Mr. Abercrombie) is recognized for 5 minutes.
  Mr. ABERCROMBIE. Mr. Speaker, I rise today to call my colleagues' 
attention to a serious crime being perpetrated against some of our most 
vulnerable citizens: mail fraud and telemarketing scams targeting 
senior citizens. In my own district, one gentleman pleaded with me, 
``The mail is still coming. I don't have the money to send.''
  Some companies peddling questionable products or promoting unwinnable 
contests make a living out of targeting senior citizens. It is 
estimated that telemarketing fraud robs Americans of at least $40 
billion a year.
  The actual number may be much higher, as telemarketing fraud has 
always been a part of our Nation's underground economy. Not all losses 
have been clearly documented. Some consumers are too embarrassed to 
report that they have been defrauded or they do not recognize the 
extent of the fraud that has been perpetrated upon them.
  Mr. Speaker, I held a meeting on this issue in my district recently; 
and I was appalled at the number of people in the audience who came up 
to me after a discussion led by members of the FBI, led by members of 
the Post Office, the Postal Inspector Section, after the recitation of 
statistics and perspective by myself, and yet asked me afterwards if I 
could give them my personal assistance in contacting some of the 
fraudulent companies to see if it was not possible for them to perhaps 
receive their prizes or be acknowledged for the funds that they had 
been sending.

                              {time}  1830

  Mr. Speaker, I can assure my colleagues that this is a heart-
wrenching situation. It is taking place all over the country, and it 
prompts me to rise today to extend these remarks to my colleague and to 
the other Members.
  Older Americans, Mr. Speaker, are the target of many fraudulent 
telemarketers because they are generally at home more often than 
younger persons, they may be more trusting. That is certainly the case 
with those that I spoke with recently in Honolulu, Mr. Speaker, and may 
look upon a smooth-talking telemarketer as a trusted friend rather than 
someone preying upon their life savings. These fraudulent activities 
are a disgrace, and we should do all we can to stop them.
  On April 8, 1998, as I indicated, I sponsored a mail and 
telemarketing fraud briefing for senior citizens in my district in 
Honolulu, Hawaii. This education national briefing was designed to give 
vulnerable senior citizens a fighting chance against an industry 
designed to victimize them.
  John Gillis, a supervisory special agent for the Federal Bureau of 
Investigation in Honolulu, and Byron Dare, a postal inspector for the 
United States Postal Service in Honolulu, presented testimony on their 
agencies' efforts to combat mail and telemarketing fraud and educated 
seniors on how to avoid becoming victims of such schemes.
  Mr. Speaker, I most sincerely urge my colleague and other Members to 
take advantage of FBI offices in our districts, as well as postal 
service inspectors in our district, to hold similar briefings for 
senior citizens in our areas. Senior citizens need to be protected from 
these scam artists, and one of the best ways to do this is educate them 
on how fraudulent information is presented.
  I am preparing legislation on this issue. I am already a cosponsor of 
the Protection against Scams on Seniors Act, H.R. 3134. This bill 
authorizes the Administration on Aging to conduct an outreach program 
to educate seniors on telemarketing fraud. I plan to continue my 
outreach efforts to reach Hawaii's elderly population from falling prey 
to these unscrupulous mail and telemarketers.
  I also support the efforts of Federal agencies and private 
organizations who have been actively involved in this issue. The 
American Association of Retired Persons, the AARP, has created a 
profile of telemarketing and mail fraud victims. The profile shows the 
average victim is not only an older American, but relatively affluent, 
well-educated, well-informed, and socially active in his or her 
community.
  AARP's research indicates that the critical difference between 
victims and nonvictims is their ability to recognize that telemarketing 
fraud is a crime. Mr. Speaker, I want to emphasize that. The key here, 
the critical difference between being a victim and a nonvictim is their 
ability to recognize that telemarketing fraud is a crime.
  Many people find themselves the victim of fraud and do not recognize 
that it is, in fact, criminal activity, and there is something they can 
do about it. AARP has produced educational materials in English and 
Spanish. If seniors would contact the AARP in their area, they will be 
happy to provide them with materials, telephone numbers, et cetera, 
which will aid them.
  The AARP has produced educational materials in English and Spanish 
that inform recipients of telemarketing calls about ways to distinguish 
between legitimate and fraudulent calls; how to respond safely to calls 
without becoming a victim; and how to report suspicious calls. I am 
making sure this material is available in all the senior centers in 
Honolulu.
  In Hawaii, state laws on telemarketing require specific disclosures 
by the telemarketer regarding prize and gift promotions. Our state law 
also provides consumers with a right to sue for damages and obtain 
relief on his or her own initiative, aside from any state action. 
Maximum penalties for a violation of Hawaii's telemarketing laws are 
set at $10,000.
  Uncovering these schemes, returning money owed to its victims, and 
educating seniors are worthwhile efforts I will continue to pursue. I 
am happy to have the support and knowledge of many organizations who 
also promote these goals. I will continue to educate senior citizens in 
my district of this $40 billion rip-off. I hope my fellow Members of 
Congress will do the same. With a concerted effort, we can protect our 
senior citizens and put mail and telemarketing con-artists out of 
business.

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