Integrated Global Business Solutions (IGBS)

Business Alert from June

Beware of magazine subscription scams

That friendly voice on the other end of the phone line or that fresh-faced teenager on your doorstep may be selling magazine subscriptions as part of a legitimate business or fundraising campaign. On the other hand, you may be conversing with a con artist who wants to steal your cash and your identity.

Fraudsters use a variety of techniques to persuade consumers to buy magazine subscriptions. Magazines may be offered for just dollars a week, but by doing the math you may find that the "bargain" price exceeds the magazine's price at the newsstand. Some tricksters offer "free" or "prepaid" magazine subscriptions, then charge a processing fee that, again, exceeds the publisher's retail price. Salespeople may knock on your door and shame you into buying a subscription to support a good cause — a camp for kids, a college scholarship, or another worthy endeavor. Or they may send phony notices doctored to look like legitimate bills.

Protect yourself against fraudulent magazine marketers by heeding the following suggestions:

Ask questions. Get answers that the company is willing to back up in writing. Find out how you'll be billed, how many magazines you'll receive and for how long, how you can cancel your subscription, and how the total cost of each subscription compares to its regular magazine rate. If you don't get honest answers to your legitimate questions, end the conversation.

If not satisfied, cancel. If you decide to buy, make sure you receive the magazines as promised, at the rates promised, within the time frames promised. A sales agreement may arrive in the mail soon after you order, and the cancellation paperwork will often be attached. If you decide to cancel your subscription, mail your signed cancellation notice to the sender, and tell your bank or credit card company to stop any payments.

Don't divulge personal information. As with any business transaction, be cautious about providing credit card or bank account numbers to strangers, even if they merely need the information for "verification" or "qualification" purposes. Your identity can be stolen in minutes, and may take years to recover.

For years the Federal Trade Commission and various state agencies have warned consumers about fraudulent subscription scams. Take care that you don't become a victim.

The information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or business consulting.

If you have any questions or comments contact an IGBS senior business consultant at 703.934.6170