Scammers Using Telephone Relay System To Cheat Businesses

Aug. 3, 2009 - PRLog -- Cyber criminals are using the Telephone Relay System (TRS) to cheat businesses out of money. TRS, or as it is also known, TeleTYpewriter (TTY), enables telephone conversations between people with and without hearing or speech disabilities.

The TTY was established for people with hearing impairment, to enable them to call a TRS provider, and use a keypad and a trained operator to relay typed content to the voice user and vice versa. However, BBB is now hearing reports of the system being used to launder money from stolen credit cards on a variation of what is known as advanced-fee fraud.

Although any business can fall prey, at the moment the auto repair industry is being targeted in many other states.

Connecticut Better Business Bureau President, Paulette Scarpetti, says all industries are vulnerable to this scheme; however, they can easily protect themselves.

“The criminals are making their money off of companies that they convince to wire money for payment.  Businesses and consumers have no way of recovering money unwittingly lost through wire transfers.”

Violators place calls through the TRS system to local auto repair businesses, saying they want to send their vehicle in for repairs.  They then use a stolen credit card number to pay for repairs and towing fees, and ask that the “shipping fees” be wired to a would-be towing company that will deliver the vehicle.

The “towing company” is actually the scammer, who then makes off with the money. The credit card processor then advises the business owner that the card was stolen, the payment is then reversed on the shop’s merchant account and the company is unable to recover the funds.

Connecticut Better Business Bureau reminds all businesses:

-Never wire money to unknown people, even if they have given you credit card information or a check for deposit.
-Inform all employees to beware of similar telephone calls.
-Initiate policies about payment methods and ensure all employees follow the protocol, regardless of who is making the purchase.

Scarpetti sums it up saying businesses and consumers can avoid all losses through TRS and similar advanced-fee frauds.

“Any request to use a wire transfer to an unknown individual or supposed company is an instant warning of a scam. This includes the use of “overpayment” by checks and credit card payments. Even though the payment may initially be accepted by a bank or credit card company, in most cases the checks bounce or the credit card is stolen.”

More tips on avoiding scams are available at www.bbb.org.

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Founded in 1928, Connecticut BBB is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. For more advice on finding companies and businesses, start your search with trust at www.bbb.org.