|
August 2007
Hang Up on Phone Fraud
Telemarketing fraud remains a lucrative business for criminals who rely on Canadians' trusting nature to steal money and personal information that they then use to commit financial fraud. But we're getting better at spotting these scams and hanging up on the crooks.
Earlier this summer, in fact, the Royal Canadian Mounted Police (RCMP) noted that increased cooperation between law enforcement and greater public awareness were making a dent in telemarketing fraud, citing a crackdown on $44 million in scams in the last six months alone. In news reports, Sergeant Yves Leblanc of the RCMP's commercial crime unit in Montreal said that the public is getting sharper at spotting telemarketing fraud, so here's a refresher on how to recognize some of the latest scams:
| Claim |
Reality
|
You've Won A Big Prize!
This is one of the most common scams: someone calls to inform you that you've won a big prize such as the jackpot of a lottery or a fabulous trip, and all you have to do is pay a small fee to claim your big win. Often you haven't even purchased a ticket or filled in a ballot. |
Legitimate contest and lotteries will never ask you to pay a fee to claim your winnings. And always be careful when you enter a contest - be sure that the contest is organized by a reputable organization and find out how your personal information will be used and if it will be shared. |
We'll Protect Your Credit Card
A caller says that their "credit card insurance" will protect you from criminals running up huge charges on your card. All you have to do is provide your credit card number and their fee. |
This is an attempt to get your credit card number and your money. Credit card companies already protect you from fraudulent charges. Visa and MasterCard holders are protected by a zero liability policy so you're not responsible for any fraudulent charges on your card. |
Help Me Out and You'll be Rewarded
The caller says that they are a member of foreign government and need help in transferring their money out of the country. They claim that if you help them by cashing a cheque for them or giving them your bank account number so they can deposit the money, you'll receive a cash reward. |
This type of fraud, which also targets people through letters and e-mails, plays on your sympathies and wish to help. Hang up on anyone who asks you to deposit a cheque and then send some of the money back to them. The cheque is likely fraudulent and by the time you figure this out, you will have already sent back a cheque of your own or provided them with your banking information. |
Get a Guaranteed, Low-Interest Rate Credit Card
A caller offers you a guaranteed, low-interest rate credit card but says you have to send in a "processing fee" first so that the card can be activated. |
This is a scam and often targets people desperate for credit. A legitimate card issuer will never ask you to pay a processing fee and will not guarantee that you will qualify for a credit card until you apply. |
Knowing When to Hang Up
Telemarketing scams have been around since the 1970s and criminals are experts at playing on your sympathy and vulnerabilities to get you to reveal information. It's also important not to rely on your call display feature to assure you that the call is legitimate. Scammers now have the technology to manipulate the call display to look as if they are calling from a real company. Remember, if it sounds too good to be true, it probably is. Don't be afraid to hang up on someone. Phonebusters, the RCMP's anti-fraud call centre, also has some additional great tips for how to recognize a phone scam:
- The caller is more excited than you are.
- The caller demands an immediate answer but refuses to send you anything in writing.
- 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.
Source: Phonebusters
If you suspect that you may have been victimized by a phone scammer, contact police and your credit card issuer or bank. The RCMP also lists additional resources on their website.
For more fraud prevention tips, or to download the CBA's free booklet, Safeguarding Your Money, visit the Fraud and Security section of the Canadian Bankers Association website. Booklets are also available by mail by calling 1-800-263-0231.
|
|
Thank you for subscribing to the Canadian Bankers Association’s Fraud Prevention Tip of the Month.
Canada's banks take the issue of privacy, security and fraud prevention very seriously. They work hard to prevent their operations and customers from being used for any kind of financial crime and to raise awareness about the ways that customers can protect themselves.
As a consumer, you also have an important role to play in preventing fraud. This month we'll be taking a look at ways to recognize common telemarketing scams.
|
