ABC's of Fraud

Fraud information distributed during the ABCs of Fraud
seminar June 2005

Three sections

Section 2 - Scotiabank info   Section 3 - Helpful phone numbers

This is section 1

FRAUD

Fraud by telephone, Internet and mail is a serious international problem. It steals your money, your identity and even your self-respect. Protect yourself by learning to recognize fraud. Familiarize yourself with the tips and information contained in this booklet.

Phone Busters 1-888-495-8501 www.phonebusters.com

Believe it or not, there is no typical fraud victim in Canada, but research finds that fraud victims are likely to be educated, informed, relatively affluent and involved in their communities. Your risk of becoming a fraud victim is not linked to your age, race, income or geographic location. Scammers don't care about any of that - they just want your money.

Thousands of Canadians are defrauded each year. Scam artists are up to date and well-organized. They use the latest trends and sophisticated techniques:

• Professional marketing materials.

•Well-crafted and researched telephone scripts, which are traded among criminals.

• Putting you at ease with their friendly tone and "generous" offer.

• Having believable answers ready for your tough questions.

• Impersonating legitimate businesses, charities, and causes.

• Expertly using your own emotions against you.

These are professional criminals. They know what they're doing and, unfortunately for their victims, they do it well.

A caller says you won a big lottery prize but you must send money before you can collect.

It’s fraud and you will lose your money!

Legitimate lottery and sweepstakes administrators never charge fees to deliver your prize. This is one of the most common scams - if you send money you will never get it back.

The Canadian Anti-fraud Call Centre

Le centre d'appel antifraude du Canada

Is your credit really protected?

The Pitch: They say, "We'll protect you from scammers who could run up huge debts on your credit cards without you knowing. Just send us your card numbers and our fee"

The Facts: Offers of credit protection or "insurance" against fraud are just attempts to get your credit card numbers and your money. Call your credit card companies first. If someone fraudulently uses your cards, most companies hold you responsible only for the first $50.

The Pitch: A call, a letter or an e-mail from a "highly-placed" official of a foreign government requests your assistance to transfer a large amount of money. If you can help, you'll earn a huge feel

The Facts: Beware of anyone asking you to deposit a cheque and return some of the money or send some of the money to someone else. Such cheques are often counterfeit. The deposit will look legitimate until the cheque bounces in a few days. Your bank will then ask you how you intend to cover the money you transferred to the scammers. It takes up to 21 days for a cheque to clear, so it's essential that you ask your bank whether the cheque has cleared - not just whether the money is available.

A caller offers you a low interest credit card but you must send money before your card can be activated.

It's fraud and you will lose you your money!

Students, new Canadians and people who have experienced credit problems are often targeted by fraud artists who offer them low-interest loans and credit cards - for a fee. People who pay the fee don't receive their loan or card, and they never get their money back.

The Canadian Anti-fraud Call Centre

Le centre d'appel antifraude du Canada

Identity theft is the fastest-growing type of fraud. Crooks can do bad things with your good name. Protect your precious personal information. Ask all marketing, research or charity callers for:

• Detailed, written information that you can check yourself.

• Time to think about the offer. Scam artists pressure you for an answer, saying the offer will expire or go to the next person if you don't act now.

• Valid references and the means to contact them.

• A call-back number. But beware -a crook can give you a number where a colleague is standing by to finish taking your money.

Shred unwanted personal documents such as transaction records, credit applications, insurance forms, cheques, financial statements and tax returns.

The Consumer Measures Committee's website now offers a down loadable form for reporting identity theft. It makes reporting easier-and ensures the police have all the information they need. Visit www.phonebusters.com and follow the link to the CMCs report form.

Protect yourself. Don't give out your social insurance or driver's licence numbers on the phone or Internet. Crooks use them to steal your money and commit crimes in your name. Check your credit report every year.

YOU PAY TO PLAY, BUT YOU CAN'T WIN

The Pitch: A caller says you were automatically entered into a foreign lottery and you won a big prize! But you must act now and send fees to cover taxes and handling.

The Facts: Most legitimate lotteries do not call winners. If a caller requires you to pay an up-front fee to claim a prize, it's a scam. The only winner is the crook.

The Pitch: You're told you've been "pre-qualified" for a low-interest loan or credit card, or to repair your bad credit even though banks turn you down. They ask for your social insurance, driver's licence and bank account numbers - and a processing fee of several hundred dollars.

The Facts: Beware of advertisements or phone calls offering credit, especially if you have been turned down by banks. Legitimate lenders never "guarantee" a card or loan before you apply. A legitimate pre-qualified offer means you've been selected to apply - you must still complete an application and you can still be turned down.

The Pitch: Your business receives a "last chance" invoice for a listing in a "business directory" Or an invoice says an urgent delivery of photocopier or fax supplies is awaiting confirmation of your address. It appears that someone in your office ordered services or supplies but the bill hasn't been paid.

The Facts: Scam operators dupe many businesses into paying for goods and services they haven't ordered. They bet that many small business owners and their staffs are just too busy to check that every invoice is legitimate. Carefully examine all invoices, even those under $50.

The Pitch: An employment advertisement offers a work-at-home opportunity, multi-level marketing plan or other means to "be your own boss" and earn significantly higher income.

The Facts: Sending fees for job information or to be listed for jobs in Canada or abroad is risky. In many cases, scarnmers advertise all kinds of job opportunities from envelope stuffing to filling out forms, but all too often these ads make promises they don't keep. You lose more money instead of making more money.

The caller is more excited than you are.

• The caller demands an immediate answer but refuses to send you anything in writing.

• You must pay fees or buy a product before you can collect your prize or obtain credit.

• You are asked for credit card or bank account numbers, or copies of personal documents - but you get nothing in writing.

• You can only send payment by wire service or by courier.

• The price for a product is much less than the price for the same product on the open market.

• You are offered a large payment or reward in exchange for allowing the use of your bank account - often to deposit cheques or transfer money.

• You receive an unexpectedly large cheque.

• Your business is invoiced for supplies or directory listings you did not order.

If a scam artist contacts you or if you've been defrauded, call PhoneBusters at 1-888-495-8501. We will gather evidence, identify new trends and alert law enforcement in Canada and abroad. By reporting, you can prevent others from becoming victims and help put an end to fraud.

The right information can help you avoid falling for fraud. When a caller asks you to send money in order to claim a big prize, it's fraud! You'll lose your money. When a caller or Internet contact asks for your social insurance or driver's licence number, don't provide it! You could lose your identity and your money.

PHONEBUSTERS 1-888-495-8501

www.phonebusters.com

The Canadian Anti-fraud Call Centre

Le centre d'appel antiraude du Canada E-mail: info@phonebusters.com

Other important contacts are:

• The Competition Bureau, 1-800-348-5358, www.cb-bc.gc.ca

• RCMP - Reporting Economic Crime On-line, www.recol.ca

• Canada Revenue Agency Charities Directorate, 1-800-267-2384

• Canadian Council of Better Business Bureaus, www.canadiancouncilbbb.ca Credit bureaus will put a fraud alert on your account:

• Equifax, 1-800-465-7166

• TransUnion, 1-800-888-4213

• Your local police, credit card companies, banks and provincial records offices can help.

If you have concerns about fraud and seniors, call SeniorBusters at the toll-free PhoneBusters number.

Sponsored by these Fraud Prevention Forum members:

• Competition Bureau Canada (Chair)

• Bell Canada

• Canada Post

• CARP Canada's Association for the Fifty-Plus

• Canadian Bankers Association

• Canadian Council of Better Business Bureaus

• Canadian Marketing Association

• Canadian Survey Research Council

• Consumers Council of Canada

• eBay Canada

• Industry Canada - Office of Consumer Affairs

• MasterCard Canada

• Toronto Police Service

• Ontario Ministry of Consumer and Business Services

• Ontario Provincial Police

• Public Safety and Emergency Preparedness Canada

• Royal Canadian Mounted Police

• United States Federal Trade Commission

• Vancouver Police Department

• Visa Canada

• Volunteer Centre of Toronto and the ABCs of Fraud program

• Western Union

Competition Bureau Bureau de la concurrence Canada

This is section 3

Back to top

This is section 2