Crime Prevention Frauds and Scams

Millions of dollars are lost through frauds and scams, and thousands of victims are stung each year. In Winnipeg, not a year goes by that someone does not lose their life savings to a fast-talking swindler who convinced them to take part in a something that was NOT what it seemed.

The con artist often sees the elderly as “easy targets” for this type of crime, so they must be ever aware of what can happen if they get hooked up with this type of criminal. We should all be aware that we could lose our life savings to this type of individual, and TakeAction to educate ourselves in the best methods to prevent frauds and scams.

PREVALENT FRAUDS

You can not insulate yourself from con artists, as they can contact you in a variety of ways:

• Knocking on your door
• Calling you on the telephone
• Dropping a brochure in the mail
• Email

Two of the most harmful frauds are:

Home Repair and Improvement Fraud – the con artist appears at your door or telephones you and offers to perform work on your home that they say is “badly needed” or a “great bargain”. Unfortunately, it is usually “badly overpriced” and “badly done”, and they will tend to find more things that need this overpriced, shoddy “repair work”.

Phony Prizewinner Fraud – the con artist proclaims that you are a “winner” of a fabulous prize, but you must send them money to cover one or more “minor” expenses. They may even send a courier to pick up the money from you … money that you will never see again! The prize turns out to be nonexistent or very minor in nature and not worth the money that you have just lost forever!

Other types of frauds that may be offered by these swindlers are:

• Insurance frauds

• Funeral fund frauds

• Business frauds

• Investment frauds

• Quackery and medical related frauds

• Phony bank inspector fraud

• Phishing

• Advanced Fee Letter Fraud

SELLING TECHNIQUES

The con artist relies on a variety of techniques to “sell” his swindle:

Rush Deals – they tell you that you only have a limited amount of time to take part or you will lose the deal. This is to pressure you into getting involved  with their scam before you have time to think it through.

Scare Tactics – they scare you into thinking that the opportunity is golden and will never come again – when in fact they just want to bilk you out of your hard-earned money as fast as they can.

Pressure for Down Payment – they tell you they require cash right away or you will lose the opportunity. This is just a ploy to get some money out of you as fast as possible

Secrecy – they tell you that the “deal” is extremely special and you are one of the select few who has been invited to take part. In fact, they just want you to keep the proposal a secret because they are defrauding you and don’t want you talking to anyone else about it.

Claims of Credibility – they tell you over and over that their proposal is legitimate and they are a very legitimate company. This is merely a ploy to get you to cooperate and convince you that they are legitimate. Real legitimate companies don’t have to do this. They will give you all the time you want to think it over. They will give you references and will have no problem if you check with the Better Business Bureau or the Consumers’ Bureau.

TAKEACTION TO PROTECT YOURSELF

The main steps that consumers should take to avoid being conned are:

• Learn about the frauds that occur and how to TakeAction to avoid becoming a victim.
• Check with officials before entering into any transaction or whenever you have any doubts about dealing with anyone. (Police, The Consumers’ Bureau, The Better Business Bureau)
• Shop around before purchasing services or products. Get references, compare prices and check performance.
• Understand completely any contracts, estimates or other papers before they are signed.  Never sign anything that you don’t totally understand. Check with trusted family members or friends, a banker or a lawyer if necessary.
• Whenever possible deal with local, well established firms.
• Never do business with anyone who appears at your door that you have not contacted first.
• Identify any unknown service person or sales representative, before allowing them entry. Ask them for identification and verify it if necessary by telephoning their office.
• Never conduct business over the phone unless YOU initiate the contact. Do not give out your credit card number over the phone.
• Never pay for services until they have been performed to your complete satisfaction. Pay by cheque – not with cash.
• Be very wary of any offer that promises great wealth with minimal effort. If a deal sounds “too good to be true” it probably is.
• Don’t believe that everyone calling with an exciting promotion or investment opportunity is trustworthy, especially if you don’t know him or her or their company. Con artists can be very friendly and very persuasive, but all they want is your money.
• Don’t be fooled by a promise of a valuable prize in return for a low cost purchase. A legitimate prize agency will never ask you for anything in return.
• Don’t disclose any personal information, including information about bank accounts, credit cards, or personal finances to anyone for any reason.

REPORTING FRAUDS AND SCAMS

If you suspect an attempt to con you has been made by telephone or Email, immediately contact Phonebusters toll free at 1-888-495-8501, or via their website at www.phonebusters.com.

If you have been a victim of a fraud, please contact the Winnipeg Police Service at 986-6222.

Seniors may be reluctant to complain about these sorts of incidents. If you or someone you know suspects they have been victimized, there are a number of things that should be done:

• Notify responsible agencies immediately.  (The Police, The Better Business Bureau, Consumer and Corporate Affairs, Phonebusters)
• As soon as possible stop payment of any cheques.
• Tell your story to the Police. There is no need to be embarrassed – these swindlers have victimized many intelligent people. It is important that you tell your story and take steps to prevent it from happening again. Once someone has fallen victim to one these ruthless frauds, their name and telephone number may go on a “sucker list” that is sold to other criminals who will attempt more frauds.
• Cooperate with police completely so that the criminal can be prosecuted.
• Save any evidence such as receipts, cancelled cheques, contracts or the product itself, until it can be turned over to the investigating agency.

DEBIT CARDS AND AUTOMATED TELLER MACHINES

Debit Cards are a fact of life in Canada today. They are an excellent alternative to carrying cash or credit cards, however, it is important that people TakeAction to protect themselves:

When selecting your Personal Identification Number (PIN), stay away from obvious codes, such as your birth date, Social Insurance Number or address.

Protect your Personal Identification Number (PIN). Never write it down and leave it where a criminal could discover it. Once they have your PIN and your card, they have access to your accounts.

Never give out your PIN to anyone for any reason. No legitimate person or business will EVER ask you for your PIN.

Counterfeit Debit Cards: When using a debit card – make sure that the store employee swipes your card only once in the proper card reader. Although the vast majority of store employees and owners are honest, there is a small minority who have a secondary card reader machine beside the legitimate machine. They will secretly swipe your debit card a second time – “copying” the banking information from its magnetic strip. They then memorize your Personal Identification Number (PIN code) as you type it into the machine when making your purchase. With this information, they can now create counterfeit cards and make purchases as if they were using your real card.

If you know ahead of time that you are going to need cash in the evening, go to the ATM during the daytime.

If you are having trouble using an Automated Teller Machine (ATM), DON’T ask the person in line behind you for help. Go into the bank or credit union and ask a teller for help and training on how to use the machine. Never trust a stranger.

When possible, use an ATM that is in a busy area with lots of people around. If you have to attend one after dark, try and pick an ATM that is in a well-lighted area.

Always check for suspicious persons lurking around an ATM. If you see someone that gives you an uneasy feeling, don’t shrug it off – go to a different ATM.

Never count your cash out in the open where someone can notice it. You are unnecessarily putting yourself as risk.

If you wish more information or have any questions about Consumer Frauds and Scams, please contact the Winnipeg Police Service Community Relations Unit at 986-6322 or Manitoba Consumer and Corporate Affairs Consumers’ Bureau at 945-3800.

If you would like a Police Officer to provide a Power Point Presentation on this topic please contact our office at 986-6322. Due to the demand, we request you contact us at least six weeks prior to the event. Most presentations are one hour in duration and handouts are provided. The presentation is free of charge - room to be supplied by the organization requesting the presentation, with a minimum of 20 attendees.