Frauds and Scams - March’s Trail 2023
Scammers are smart, just like you! Learn exactly what frauds and scams are, common scams in Canada, tips to avoid being scammed and what to do if you think you’ve been scammed. Join us on this webinar so you can help yourself and help others around you!
What are Frauds and Scams?
The reason frauds and scams exist is because other people want your money, personal information and in serious cases, your identity. They can occur through phone calls, mail, email, text messages, social media, and on websites.
Scammers use tricks to try and get you to hand over your money or information often by pretending to be someone you know, or a company or service you trust. Below are a few examples to put scams and frauds in perspective.
You get an email that appears to be from Amazon saying there was an issue with an item you ordered, and you have actually ordered an item from Amazon. How can you tell it’s a scam?
You get a phone call that your cousin that’s on vacation has run into some trouble in a foreign country, and you actually have a cousin that is traveling abroad at this time. How can you figure out if this is real or fake?
You get a letter in the mail from the Canada Revenue Agency that’s a Notice of Assessment about your taxes, asking you to submit personal and financial information to them. How do you identify if this letter is actually from the Government of Canada?
Many of us believe we are able to spot scams with no issues, but between clever scammers and life events lining up, it’s not as unlikely as some think. That’s why we’re glad you’re here to join us in learning about this topic so you can help yourself and the other people in your life.
Common Scams in Canada
The Government of Canada keeps a “Little Black Book of Scams” with some of the most successful scams that impact Canadians. Here is our shortened list that includes a summary and tips for how you can keep your money and personal information safe. Scroll through and find one that catches your eye.
Subscription traps
What is it?
A subscription trap can trick you by offering "free" or "low-cost" trials of products and services. Products commonly offered are weight loss pills, health foods, pharmaceuticals and anti-ageing products.
Tips to Protect!
Before you sign up for a free trial, research the company and read reviews; especially the negative ones. Don't sign up if you can't find or understand the terms and conditions. Pay special attention to pre-checked boxes, cancellation clauses, return policies, and any vague charges.
Identity theft
What is it?
Fraudsters use techniques that range from unsophisticated to elaborate. Offline, they can go through trash bins or steal mail. Online, they can use spyware and viruses, as well as hacking. Thieves can make purchases using your accounts, obtain passports, receive government benefits, apply for loans, and more.
Tips to Protect!
Never provide your personal information over the phone, via text message, email or the internet. Avoid public computers or Wi-Fi hotspots, such as in coffee shops, to access or provide personal information. When you do use websites that require personal information, make sure the website link starts with “https.”
Health and medical scams
What is it?
The three most common types of health scams are miracle cures, weight loss programs and fake online pharmacies. In all cases, they often appear as sponsored posts on social media or website pop-ups.
Tips to Protect!
Don't trust claims about medicines, supplements or other treatments. Get the facts straight from your healthcare professional. Never commit to anything under pressure, especially if a large advance payment or long-term contract is required.
Romance scams
What is it?
On a real dating site, a scammer might send you a few messages and a good-looking photo of themselves, or of someone they claim to be. Once you are charmed, they will start asking you to send money. They may claim to have a very sick family member or a desperate situation with which they need your help. Once you give them money, they often disappear.
Tips to Protect!
Make sure you only use legitimate and reputable dating sites. Always check website addresses carefully, as scammers often mimic real web addresses. As flattering as it might seem, remember that it's very unlikely that someone will declare their undying love to anyone after only a few letters, emails, phone calls or pictures.
Phishing and smishing scams
What is it?
Phishing is when you get an email that claims to be from a legitimate organization, such as financial institutions, businesses or government agencies. Smishing is the same thing, except it occurs by text messages.
Tips to Protect!
Know that reputable organizations will never ask for your personal information through email or text. Don't reply to spam messages, even to unsubscribe, and don't open any attachments or follow any links. Never use the phone number or email address provided in the suspicious message — use contact information listed on verified websites.
Tax scams
What is it?
You get a text message or an email from the Canada Revenue Agency (CRA) claiming you're entitled to an extra refund and all you need to do is provide your banking details, or that you owe additional money to the CRA. This situation is exactly what a tax scam looks like.
Tips to Protect!
If you do receive a call, letter, email or text saying you owe money to the CRA, you can double check online via "My Account" or call 1-800-959-8281. Emails from the CRA never ask for financial information.
Door-to-door scams
What is it?
With this trick, door-to-door salespeople use high-pressure tactics to convince you to buy a product or sign up for a service you don't want or need.
Tips to Protect!
Don't feel pressured to make a quick decision — take time to do some research on the seller and the products first. You can ask for a photo ID, get the name of the person and of the company or charity they represent. You can also ask for the charity's breakdown of where funds are allocated. Be sure to get this in writing.
Emergency scams
What is it?
The typical scam starts with a victim receiving a phone call from someone claiming to be a family or friend in need. One variation of this ploy features two people on the phone, one pretending to be a grandchild and the other a police officer or lawyer. In other cases, the scammer will pretend to be an old neighbour or a family friend in trouble.
Tips to Protect!
Take time to verify the story. Ask the person on the phone questions that only your loved one would be able to answer and verify their identity before taking steps to help.
Purchase or sale of merchandise scams
What is it?
Fraudsters can create accounts on legitimate auction sites, such as eBay, or on an online marketplace, like Kijiji or Craigslist. They will advertise their products at very low prices. If you sell items online, either personally or as part of a business, there is a risk of being targeted by tricksters who want to take your merchandise, money, or both. There are many versions of this scam, like getting payments from a fake money transfer, a fraudulent cheque or a stolen credit card.
Tips to Protect!
Buy from companies or individuals you know by reputation or from past experience. Never make a deal outside the auction site and beware of sellers that have limited or no reviews. Beware of buyers who want to buy products or other items without seeing them.Look at the sender's email address and check for addresses that are similar to legitimate ones, with just one or two different letters. Be wary of websites or emails that contain many spelling mistakes and grammatical errors.
Tips to avoid being scammed
Here are our top tips we recommend to remember. This will give you a good foundation to help protect from scammers:
Protect your passwords
Keep your personal identification safe
Be cautious before you click on a link
Be wary of requests for personal or financial information and don’t be afraid to hang up
Check your bank and credit card statements and report any irregularities
Shred personal and financial documents before putting them in the garbage
Retrieve your mail on a regular basis - limit possible mail theft
When you move, notify the post office and your bank and service providers
What do I do if I am scammed?
You are not in trouble if you have been scammed and you are not stupid if you’ve been scammed. Many victims are afraid to seek help for these very reasons. If you are worried you’ve fallen victim to a scam, Contact your bank or credit card issuer right away and contact Canada’s credit reporting agencies. You can also contact the local police.
The Government of Canada has a whole section on scams and frauds that includes even more details than we’ve shared in this post, and also contact information for if you think you’ve been scammed. Find the link to their website here.
Don’t forget to join our zoom webinar about Frauds and Scams happening March 9, from 7 to 8 p.m. AST. No need to register, just click the link here!
