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Cold Reading
a practiced cold reader can still quickly obtain a great deal of information about the subject by carefully analyzing the person's body language,clothing or fashion, hairstyle, gender, sexual orientation, religion, race or ethnicity, level of education, manner of speech, place of origin, etc. Cold readers commonly employ high probability guesses about the subject, quickly picking up on signals from their subjects as to whether their guesses are in the right direction or not, and then emphasizing and reinforcing any chance connections the subjects acknowledge while quickly moving on from missed guesses.” (Wikipedia, September 2008)
Yes, “cold reading” does occur. But once you are aware of it, then it’s pretty easy to spot. A genuine reader will be able to give you information about yourself and your family which is way beyond the ability of a “Cold” reading. Genuine psychics take no notice of the so called clues listed above. A doctor may be wearing jeans and tee shirt. A divorced woman may still wear her wedding ring, and a happily married women might not.
And “cold reading” like this would be impossible over the telephone when there are no “information” from “clothing or fashion, hairstyle,” and no body language to read!.

A useful definition:
“Cold reading is a technique used by mentalists and fortune tellers, psychics, and mediums to determine details about another person in order to convince them that the reader knows much more about a subject than he or she actually does. Even without prior knowledge of a person,