Protect yourself with the power of knowledge by reviewing the following scams and what to do if you’ve been approached.
1-900 Numbers
Any time you call a 1-900 number, be aware that:
- you are paying for the call — often at a minimum charge of about $35;
- area codes1-900, 1-976 and1-809 have a similar minimum charge;
- the promoter gets a portion of the money from each incoming call;
- pay-per-charge numbers are used by legitimate businesses to charge their customers for information services; however, such businesses tell you about the fee upfront;
- the names and telephone numbers of people who’ve lost money are often sold by one scam artist to another;
- if you are concerned, you can order a call-blocking service from your telephone company that restricts your phone from making certain types of calls. Don’t confuse 1-900 numbers with toll-free numbers, which allow consumers to contact government and business offices without paying a long-distance charge. Toll-free numbers begin with area codes 1-800, 1-888 and 1-877.
Two scenarios
His pager alerted the man to call an odd-looking number beginning with 1-900. He called, then sat through a long information message about health. Before he spoke with a live person, the line was automatically disconnected. Shaking his head, he hung up.
A few weeks later, he received a telephone bill for $35 with the 1-900 telephone number he had dialed earlier in the month beside the amount.
***
The newspaper ad said to dial the 1-900 number splashed across the page in bright red print to win a trip to Mexico. "All you have to do is call!" It sounded simple enough.
The consumer decided to take the plunge. After all, what did he have to lose?
He dialed the number and waited patiently for the lengthy information message to end. But before he could speak with someone, the line was automatically disconnected. He hung up.
One month later, the man’s telephone bill showed a $50 charge for the 1-900 call he had placed.
Charity Telephone Scams
With the growing number of charities seeking private support, it’s important to make sure the dollars you give don’t end up in the pockets of scam artists. The wise course is to give only to established charities or groups you’re familiar with.
Avoid getting scammed by following these tips:
- If you want to donate to a worthwhile charity, give to one you know or find out about it before you part with your money.
- Do not pay in cash.
- Ask for a copy of the charity’s annual report and some information in writing before making a donation.
- Be wary of any situation that involves the use of high-pressure tactics, such as door-to-door and on-the-street solicitations. Any legitimate charity will gladly accept donations later.
For a list of Canadian registered charities, including the annual information, please visit Canada Revenue Agency’s website.
Investment Telephone Scams
If a telephone promoter promises to make you rich, claims you’re the "big winner" of a fabulous prize or says they need your financial help, check the story carefully before you act. Protect yourself against phoney telephone promoters by following this advice:
- If someone calls to say you’ll win or receive something (i.e. money, a free vacation or a prize), hang up.
- Don’t be embarrassed. Come forward and help police capture the scam artist(s) to prevent others from being scammed.
- Usually, investment scam artists will try to convince you to invest in several progressively larger "deals" before returning to tell you that all of your money was "lost."
- Be wary of a situation that involves a company promising you a valuable prize in return for a minor purchase.
- Don’t buckle under their high-pressure tactics designed to make a quick sale.
- Don’t give your credit card number over the telephone to a stranger claiming to need it to cover "expenses" for a prize.
Real Life Cases From PhoneBusters
PhoneBusters is a national deceptive-telemarketing call centre that plays a key role in handling complaints and educating the public about fraudulent telemarketing pitches. It’s co-ordinated by the Ontario Provincial Police Anti-Rackets Section in co-operation with the Royal Canadian Mounted Police, the Ministry of Government Services and several other law enforcement agencies across Canada.
The case of the "guaranteed" returns
A man owned a company operating out of Ontario that offered various services, including investment in pharmaceutical products. Victims were guaranteed large returns on their investments if they answered an ad in the local newspaper. When they called, consumers report they were subjected to a lengthy sales pitch and arranged to meet the accused at his office. At that point, they would pay the man anywhere from $525 to $10,000. After several months of avoidance and receiving absolutely no money back, the victims complained to police.
The case of the accused, charged on four counts of fraud over $5,000 and one count of fraud under $5,000, is still before the courts.
The case of the advance fee loan scam
Thirty-seven bogus companies offered loans to U.S. citizens for an advance fee. The companies led their victims to believe that their offices were in various U.S. states, while they were actually operating out of an industrial office space in Toronto.
At the time of the arrest, the estimated reported losses were more than $100,000 U.S. Three men were arrested and charged with fraud.
Telephone Scam Statistics
| Telephone Scams | |
| Opened Investigations | 177 |
| Opened Prosecutions | 186 |
| Number of Charges Laid | 536 |
| Registered Convictions | 140 |
| Total Fines | $159,700 |
| Court Ordered Restitution | $272,683 |
| Months Probation | 429 |
| Months Incarceration | 12 |
| Restitution Obtained Through Mediation | $116,682 |
Figures from PhoneBusters
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