Top Stories of 2009
Fraud Prevention Month
March 16, 2009, Simcoe, Ontario - Thousands of Canadians are defrauded each year by telephone, internet and by mail; and as scam artists become more sophisticated, consumers need to be more cautious than ever. March has been recognized as “Fraud Prevention Month” and, in order to address the issue of fraud, members of the Fraud Prevention Forum across Canada and around the world are working to educate the public on how they can protect themselves from becoming victims.
Crime Stoppers of Haldimand, Norfolk and Tillsonburg applauds the initiatives of the forum and wants to re-iterate the importance of education when it comes to protecting yourself from fraud. Crime Stoppers chairperson, Gord Little states, “Knowledge is key.” He continues, “Crime Stoppers encourages everyone to learn how to recognize a fraud and take the steps necessary to protect their personal and financial information.”
Fraud has no geographic boundaries and new frauds and schemes are constantly surfacing. Take time to learn about the various types of fraud that exist so that you know how to recognize when someone might be trying to defraud you. Different types of fraud include the “prize pitch” and “recovery pitch,” advanced fee loan scams, travel schemes, false charity fraud, 1-900 scams, West Africa and Nigerian letter fraud, identity theft, pyramid schemes, “phishing,” and employment recruitment scams.
There are many reputable resources for learning about how to recognize fraud. Organizations such as the Ontario Provincial Police (www.opp.ca), Phone Busters (www.phonebusters.com) and the Competition Bureau of Canada (www.competitionbureau.gc.ca) all offer tips and information to help people recognize fraud, stop it and report it.
If you have any information about fraudulent crime or any crime occurring in your community, contact Crime Stoppers. Crime Stoppers of Haldimand, Norfolk and Tillsonburg is a community based organization which provides people with an anonymous, confidential way to relay information to investigators without ever having to get involved as a witness. The program’s toll free 1-800-222-TIPS (8477) line and online webtips (www.helpsolvecrime.com) are operational 24 hours a day, seven days a week and cash rewards up to $2000 are offered for information that helps to solve a case.
How can you recognize a scam? *
- Prize Pitch – In this very common scam, consumers are told they have been specially selected to win a prize, but they must purchase a product and pay in advance to receive the prize. Remember, in a legitimate contest you do not have to purchase a product to qualify for a prize.
- Recovery Pitch – If you buy into any of the “prize pitch” schemes, you are likely to be called again by someone promising to get your money back for you. Callers may claim to be law enforcement officials or someone who has bought out a particular company that promised you prizes that were never sent to you. Do not believe them and hang up.
- Advanced Fee Loans - Ads that promise loans generally appear in classified sections of local and national newspapers, magazines and tabloids. Remember, simply advertising through recognized media outlets does not ensure the legitimacy of the company behind the ad. Do your homework.
- Travel - By simply filling out a ballot to win a vacation at a home, boat or auto show, you may be set up for a "suckers lists." Subsequently, someone may contact you claiming to offer a "free" or "low cost" vacation. Never give out information over the phone and be sure to check out the value of these types of promises with a legitimate travel agency.
- False Charities – If an unfamiliar charity organization contacts you - by mail, phone, or Internet - be careful. Bogus charities often use names that are very close to the names of legitimate and respected charities. Always ask for information in writing and never give out information over the phone and research the legitimacy of any organization before donating.
- 900 Scams - The 900 scams are a variation on a prize scheme. The consumer is encouraged, usually through an offer in the mail, to call a 1-900 number in order to find out about, usually an implied large prize. These calls cost the consumer money – usually around $35 a call. Check things out carefully before you make any calls.
- Identity Theft – This occurs when someone has used your name, your Social Insurance Number (SIN), your credit card number, or some other piece of your personal information for their own use. Be sure to protect your personal information at all times.
- West Africa and Nigerian Letters - This type of scheme begins once a consumer receives a letter either by mail, fax transmission or email. In addition to stressing the urgency and confidentiality of a transaction, these letters will also stress the importance of trust and honesty in order to make the reader believe that there is a validity to the letter. These letters are fraudulent.
- Pyramid Schemes - Pyramid schemes are based on recruiting an ever-increasing number of investors. The initial promoters (those at the peak of the pyramid) recruit investors who are expected to bring in more investors. At some point, no new investors can be found and as a result the last investors, who are at the bottom of the pyramid, lose their money. Before you invest any money in a multi-level company that could be a pyramid, get all the facts about the company, its officers and its products.
- Phishing - Phishing attacks use e-mails and fraudulent websites designed to fool recipients into divulging personal financial data such as credit card numbers, passwords, Social Insurance Numbers, etc. In phishing schemes, an e-mail is sent to a consumer, directing them to a fraudulent web site which closely resembles the site for a legitimate, trusted organization. Consumers are then asked to update information, which identity thieves use to commit fraud. As a general rule, you should always be careful about giving out any your personal financial information over the Internet.
- Employment Recruitment Scam - In an employment recruitment scam, Canadian job hunters are recruited to act as agents for “foreign companies.” The job hunters are actually being used as “mules,” to transfer stolen funds outside of Canada. Anyone who participates, even unknowingly, would become an accomplice to the crime and can be prosecuted. Always be sure to do a background check before accepting any employment.
For more information on different types of fraud and what you can do to protect yourself, contact your local police service or Phone Busters (www.phonebusters.com).
* Created with input from the Ontario Provincial Police website. For more information visit www.opp.ca