8 Top Scams reported by the BBB
It’s #FraudSquadFriday and we’re keeping you up to date with the biggest scams to help you can protect yourself from scammers.
Did you know that in 2018 alone, Canadians experienced $100 million dollars in fraud losses? As the number of Canadians that are victimized by fraud rises, it is becoming more and more important for Canadians to be aware of scams and frauds that happen regularly. By being aware, you can better protect yourself from being victimized.
Below is a list, compiled by the Better Business Bureau, of the Top 8 Scams in Canada.
1. Romance Scams – more than $22.5 million lost
Romance Scams generally start on online dating sites. The victim meets a friendly person (the fraudster) and they develop an online relationship. Over time, the fraudster will build trust with the victim – sometimes asking the victim to marry them. Once trust is built, the fraudster will start asking for money for various reasons (including but not limited to – hospital bills, travel expenses, donations, construction, wedding expenses etc). The victim, feeling the fraudster is their soul mate, sends money over and over again. Some victims have lost more than $250,000 and have taken on extra debt to continue to send money. This scam victimizes financially, emotionally, psychologically, and socially.
2. Income Tax Extortion Scams – more than $6 million lost
Income Tax Extortion Scams occur when the fraudsters call or email the victim(s) claiming to be with the Canada Revenue Agency (CRA). During the phone call or in the email, the fraudsters claim the victim owes CRA a certain amount of money and if they don’t pay it immediately, the police will be coming to arrest them. A phone number is provided to call back and to make arrangements for payment. Payment may be requested in ITunes, Google Play, or Amazon gift cards. As a note, CRA will never email or call to advise of money owing. The only payments accepted by CRA are through your financial institution or online banking.
3. Online Purchase Scams – more than $3.5 million lost
Online Purchase Scams are still popular. They can involve fake websites, purchasing counterfeit goods, and receiving fraudulent payments (including overpayments). They are seen on many websites including Craigslist and Kijiji. Members should be vigilant about what they are buying and who they are dealing with.
4. Employment Scams – more than $4.5 million lost
Employment Scams continue to victimize – even through reputable job websites. In this scam, the fraudster may send cheques with significant overpayment and request the member forward the excess money to someone else. The cheque is usually fraudulent and the member is left having to cover the costs after the fraudulent cheque is returned.
5. Phishing – losses unknown
Phishing continues to one of the most popular ways for defrauding people. Fake websites and fake emails that seem legitimate are a popular way of scamming victims. It can be difficult to determine whether the email or website are authentic. Remember, if you are unsure, find another way to verify the authenticity – for example, search the company yourself, find a phone number, and contact them directly to confirm.
6. Subscription Scams – losses unkown
Subscription Scams involve online advertisements and pop up ads that you see while using social media or browsing the Internet. The ads can be of skincare, make up, weight loss, diet pills etc. It can involve ‘fake’ celebrity endorsements as well. The ads include ‘Free Trial Periods’ but the victims end up in subscriptions with large monthly fees charged to their credit card.
7. Advance Fee Loans – almost $1 million lost
Advance Fee Loans target members that may not be able to obtain lending through traditional avenues (ie through the Credit Union). They may have bad credit or low income. The fraudsters charge an upfront fee for the loan. This practice is illegal in Canada.
8. Bank Investigator Scams – more than $2 million lost
Bank Investigator Scams are a relatively new scam. In this scam, a member is contacted by a “Bank Representative”, “Investigator”, or “Law Enforcement Officer” about their banking – usually early in the morning. They are told that there is a fraudulent activity on their accounts. The members are then asked for credit card information or bank account information and may be advised to transfer their money to another account to protect it – the money is transferred to an account in the fraudsters’ name. The fraudsters may also advise that they call the number on the back of their card – however, they don’t hang up and the members don’t realize they are still talking to the fraudsters. The best protection in this case, is to tell the fraudsters that you will call your branch representative directly for assistance and get off the phone. If there is actual fraudulent activity, your branch representative will be able to assist you.
While this list is the Top 8 Scams, the list is by no means exhaustive. There are always new scams and frauds as fraudsters find new ways to defraud people. Be aware and pay attention to news stories involving scams and frauds. Additionally, you can also go to the Canadian Anti-Fraud Centre which highlights scams that are targeting Canadians.
Remember, being vigilant will help protect you and your financial assets. If something seems too good to be true, it most likely is. If you feel you may be being or have been victimized, please contact your branch for assistance and report fraud to the Competition Bureau of Canada so they can alert other Canadians to the potential dangers.
