Imagine being at home one day and your phone rings. The person on the other end says you’ve won the grand prize of $1 million in a promotion by a local company. All you need to do to collect your winnings is to pay a small administrative fee.

The caller tells you that “You must act now, or you’ll miss out on the prize of a lifetime.”

If you ever receive a call like this, you’re most likely the target of what’s commonly known as telemarketing fraud or vishing. It’s important that you learn how to recognise this type of fraud and the steps needed to protect yourself in these scenarios.

Dwayne Brown, executive cybersecurity at Jamaica National Group, said in this scenario a person’s best action is to avoid sending any money or releasing any personal information.

“As a matter of fact, I would advise you to say, ‘No thank you’ and hang up the phone immediately,” he said.

Telemarketing fraud occurs when criminals — posing as legitimate businesses, charities or causes — call people with phony offers in an attempt to defraud them.

For example, a fraudulent telemarketer or ‘scammer’ may try to pressure you into sending money for a special offer, deal, prize or lottery that you have supposedly won, or ask you to provide personal information like your credit card numbers.

For most seniors, the possibility of a scam compromising their bank accounts or derailing their finances can be unnerving. But Brown assured that there are ways persons can protect themselves from such scams.

He noted that one of the main tools in fraud protection is education and awareness.

“I urge everyone, whether young or old, to equip themselves with knowledge about the latest trends and tactics being used by scammers so that when they are approached they can readily identify and avoid such cons,” Brown said.

Here are a few basic rules to remember:

Verify information

The first step is to know who you’re dealing with,” said Brown. He urged seniors to verify the company, where it’s located, etc. Ask questions and get a callback number.

“If your questions are being avoided or not answered to your satisfaction, you should be cautious. Legitimate companies will give you an opportunity to check them out or think about an offer,” he said.

Never give out personal information

Never provide your account number, credit card number or other financial information over the phone unless you initiated the call or have validated who you’re talking to within the company. “No one should ever request personal banking information from you over the phone. If anyone asks you for this information, alert your financial institution immediately,” Brown said.

Don’t be pressured into a decision

Take the time to do your homework. Don’t invest or buy a product or service without fully understanding what it is and verifying whether it is legitimate. Scammers often try to create a false deadline. If you feel pressured to make a decision, hang up. You’ve spent a lifetime earning your money so you deserve a little time to choose how to spend it.

Never send money to take advantage of a special offer, prize or deal. There’s a good chance you won’t get any of these things — or see your money again.

Stay Alert

Even if you initiate the call, you might not be safe. Before you give any personal or financial information over the phone, check out the company’s credentials, ask the person to mail you information, take a look at the company’s website, and ask for references.