Consumer Tips

Advance Fee Scams

Be cautious about ads promising guaranteed jobs, guaranteed loans, credit repair, debt consolidation or similar claims. Many of these offers are only a way to get you to send money in advance in exchange for little or no service.

• Be cautious when responding to advertisements, particularly those that use 1-900 telephone numbers. You can be charged substantial and differing amounts for calls to 1-900 numbers.
• Be careful about giving out any of your personal information, including your social insurance number, credit card numbers and bank account numbers. Fraudulent businesses could use this information to make unauthorized charges to your credit card or to withdraw money from your bank account.
• Before you make any payment, ask the business to send you a contract and other information stating the terms of the service and whether you can cancel the service and get a refund.
• Ask how long the firm has been in business and whether it is licensed. Review all contracts carefully. When you are unsure about a contract, take it to a lawyer or trusted advisor for his or her opinion before you sign.
• Contact your provincial or territorial consumer affairs office and/or the Better Business Bureau to find out whether any legislation applies to that type of business.
• When you suspect that advertising is fraudulent, contact the local police and consumer protection agency.

Please also see the following sections for information about other possible frauds:

• contracts
• electronic commerce
• mail order
• misleading advertising
• multilevel marketing and pyramid schemes