Warning: Scam Artists Love to Use Those Respectable Courier Services

The speed and efficiency of overnight delivery services has attracted a new breed of customer: the con artist.

The National Consumers League reports that 46% of telemarketing scams now involve overnight delivery services, up from 5% less than two years ago. In raids of telemarketing boiler rooms in Los Angeles and Orange counties this week, authorities found evidence that express delivery services were used to pick up checks from victims.

“It is something we’ve been seeing more and more,” said Lindsey Kozberg of the state Department of Corporations, which conducted the raids.

Authorities say such operations usually involve “investment opportunities” or “prize” promotions. After selling the pitch over the telephone, a telemarketer sends Federal Express or another delivery service to the person’s home to pick up a check for payment.

The sums involved can be substantial. In several cases investigated by the Federal Trade Commission, investors have paid from $7,000 to $20,000 each for stakes in various partnerships developing wireless communications systems.

The trend is an embarrassment to overnight delivery companies, which have reputations for reliability and trustworthiness. A Harris Poll commissioned by the National Consumers League 18 months ago found that more than 75% of consumers believed an offer would be legitimate if delivered by Federal Express.

However, representatives of overnight delivery companies said they cannot refuse to deal with suspected con artists.

“We are required by law to treat customers equally,” said John Handy, a spokesman for Seattle-based Airborne Express. “If we have information that something may be illegal, we turn it over to law enforcement.”

There are several reasons con artists like to use overnight delivery services, authorities and consumer advocates say. For one thing, using a delivery service allows con artists to avoid prosecution under the federal law against fraudulent use of the U.S. mails. The mail fraud statutes are handy tools for prosecuting con artists.

“Once you’ve shown a fraud has been committed, it is fairly easy to show the mail was involved,” said Paula Prince, spokeswoman for the Postal Inspection Service.

Use of overnight delivery services also avoids glitches with over-the-phone credit card transactions. John Barker, National Consumers League vice president, said consumers can reverse credit card purchases if the merchandise or service is not delivered or proves unsatisfactory, making it hard for the con artists to collect.

“What is real easy is to send someone by to pick up a check,” Barker said. “Once (con artists) get your check, it is very difficult to get it back from them.” A consumer cannot stop payment on a check after it clears.

Working with the National Consumers League, Federal Express last fall began to deal with the problem. Its couriers distribute warnings about fraud to likely victims, generally package recipients in residential areas. “Beware,” the warning notice says, adding that the company is “not part of any organization offering prizes, special purchases, loans or investment opportunities.” The notice bears a toll-free phone number customers can call if they think they might be fraud victims.

On another front, five bills pending in Congress would make it a crime to use an overnight delivery service to commit fraud. Consumer activists and Federal Express support the legislation.

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What the government giveth, companies sell: “State and Federal Posting Requirements,” said the envelope from the California Poster Compliance Center. Inside was an order form for “mandatory state posters” and “mandatory federal posters.” The order form notes: “Failure to post the above notices . . . may result in civil and-or criminal penalties.”

That alone may be enough for an employer to send the Poster Compliance Center in Sacramento $24.50 for a set of posters about wage and workplace safety laws that all employers are required to display. But hold the pen! The government distributes these posters free.

Allen Glazer, manager of Poster Compliance, said the company provides a service because employers frequently don’t know which posters are needed.

However, the California Chamber of Commerce will tell employers which posters they need. Joe Willman, marketing director for the chamber, notes that employers who don’t want to call all nine government agencies can buy a set of posters from the Chamber for $10.

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Tax day note: The Washington-based Women’s Law Center graded the states according to their tax provisions for families who must pay for costly child care or dependent-adult care. California was among 17 states receiving an F for having no child-care or dependent-care allowance or deduction. Minnesota was the only state to receive an A. The advocacy group said families spend between 6% and 23% of their weekly incomes on child care.