Whenever you get a request to do business over the telephone, a few simple precautions can help you avoid becoming a victim.

• Don't succumb to high-pressure or rush-sales tactics. Take time to think it over. In particular, take time to find out about the company you're thinking of doing business with—where it's located, how long it's been in business, and whether it has a record of customer complaints. You can obtain this information from your local Better Business Bureau (which may charge a fee) and your state or local consumer protection agency. Also, ask the telemarketer to send you literature about the company and its products before you commit yourself. If they don't want to do that, they probably aren't legitimate.
• Don't give out credit card numbers, bank account numbers, social security numbers, or other personal information over the telephone. Provide this information only after checking out the company you're doing business with and once you're satisfied that there's a legitimate need for the information.  
• Don't send payments by overnight mail or private courier. Crooks will sometimes try to avoid using the U.S. mail to deprive the U.S. Postal Inspection Service of criminal jurisdiction.
• Beware of recovery scams. Crooks often will call a person who has been defrauded to offer help in getting his or her money back—trying to defraud the victim again.
• Don't pay up-front money for loans, credit repair services, or business or franchise opportunities. In each case, it is unlawful for the company to bill you or require you to commit yourself unless you have received disclosure documents or full performance of services. Legitimate credit card companies will not request payment for credit cards. Contact the Federal Trade Commission at 202-FTC-HELP for more information.
• Remember the old saying: If it sounds too good to be true, it probably is. One common characteristic of many telephone scams is that they involve unrealistic promises. Proposed investments that promise extremely high rates of return, or proposed business or franchise opportunities that offer effortless income, are often among those schemes that are literally too good to be true.
• If you do detect a danger signal of fraud, just hang up. You don't have to stay on the telephone to engage in an unwanted conversation with any stranger who's soliciting your business, particularly if you suspect fraud.