Most of us would say we have pretty good instincts when it comes to telling when something just isn't right. The trouble is, there are a lot of unscrupulous people out there who are employing increasingly sophisticated techniques to try to steal your hard-earned money. Every year, Canadians lose millions of dollars to fraud, from identity theft to extortion, from fraudulent door-to-door sales to phone calls about free trips or jackpot wins. The good news is, a few simple tricks can help you hone your instincts and better protect yourself and those you love.
So-called "romance schemes" are especially devastating for victims, as fraudsters gain the trust of victims through displays of affection before attempting to extort money for all kinds of reasons – travel expenses to come see their purported partner, health or family emergencies, and so on. Since 2012, Canadians have lost more than $90-million to scammers pretending to be in love.
There are a couple of good indicators that should tip you off that your new relationship may not be what it appears to be - for example, someone who wants to develop a quick relationship, or who professes their love before meeting you in person. Be wary as well if someone claims to live close to you but is currently overseas – it's often a set-up for asking for money. Never send money, or cash a cheque on someone's behalf to send them a portion of the funds – chances are it's a counterfeit cheque and you'll be responsible for any financial loss from it. Children of seniors who may be participating in online dating should stay in touch with their parents about any new relationships, and should raise red flags if anything seems suspicious.
Tax season is another ripe time for scammers claiming to be with the Canada Revenue Agency (CRA) or your bank. Often, you will be told your account is in arrears and that you need to make a payment immediately to avoid being sent to collections, or other dire consequences. These kinds of messages can come as phone calls, letters, emails or even text. The biggest tip-off for these types of scams is pressure and urgency – the fraudster will try to bully you into sending the money immediately.
The method being used to contact you is another indicator that something may be awry, including international phone numbers, email addresses that aren't exactly right, or spelling errors in the business or department name. Remember, neither CRA nor your bank will text or email you about your finances or sensitive case information. If you get a message, call the CRA or your bank using a phone number from a reputable source – don't use a phone number the suspected fraudster is giving you. You will then be able to verify whether or not the request is real and what you need to do.
Often, you can spot a scheme by simply asking yourself, is this a reasonable scenario? A bank manager will not call you to ask you to help with a security issue by sending them money from your personal account. The Canada Revenue Agency will not ask you to pay your taxes in iTunes or other gift cards. A potential employer will not ask you to cash a cheque on their behalf and send them the money. Chances are, you do not have money sitting in a bank account you don't know about. And prizes are rarely distributed to people who did not know they were entered in a contest.
It can be tempting to bait fraudsters who call, or to draw them on into a longer conversation. However, the longer you talk to them, the more information you're giving them that could be used in a future scam. In some cases, the person running the scam has become angry or has even made threats. It's much safer and smarter to simply hang up.
If you think you have been the victim of a fraud, contact police. If you've been contacted by a fraudulent scheme, report it to your local police and the Canadian Anti-Fraud Centre.