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Most marketers are honest business people, but you must protect yourself and your loved ones from fraud. The following are some tips on spotting fraudulent activity.
Recognizing a scam
Here are some classic signs of a criminal fraudster:
It sounds too good to be true
- You've won a big prize in a contest that you don't recall entering.
- You're offered a once-in-a-lifetime investment that offers a huge return.
- You're told that you can buy into a lottery ticket pool that cannot lose.
You must pay or you can't play
"You're a winner!" but you must agree to send money to the caller in order to pay for delivery, processing, taxes, duties or some other fee in order to receive your prize. Sometimes the caller will even send a courier to pick up your money.
You must give them your private financial information
The caller asks for all your confidential banking and/or credit information. Honest businesses do not require these details unless you are using that specific method of payment.
You are asked to call a 1-900 number
You receive a piece of mail telling you to call a phone number (usually a 1-900 number) to collect your prize. Read the "fine print" carefully to see how much the phone call will cost you. There is always a charge to call a 1-900 number and it could likely cost you more than the prize you receive.
Will that be cash...or cash?
Often criminals ask you to send cash or a money order, rather than a cheque or credit card. Cash is untraceable and can't be cancelled. And, crooks also have difficulty in establishing themselves as merchants with legitimate credit card companies.
The caller is more excited than you are
The crooks want to get you excited about this "opportunity" so that you won't be able to think clearly.
It's the manager calling
The person calling claims to be a government official, tax officer, banking official, lawyer or some other person in authority.
The stranger calling wants to become your best friend
The person calls you by your first name and asks you a lot of personal or lifestyle questions (like how often do your grown children visit you). Criminals love finding out if you're lonely and willing to talk. Once they know that, they'll try to convince you that they are your friend - after all, we don't normally suspect our friends of being crooks.
It's a limited opportunity and you're going to miss out
If you are pressured to make a big purchase decision immediately, it's probably not a legitimate deal. Real businesses or charities will give you a chance to check them out or think about it.
I suspect that a relative or friend is being targeted by unscrupulous telemarketers. What can I do?
Watch for any of these warning signs
- A marked increase in the amount of mail with too-good-to-be-true offers
- Frequent calls offering get-rich-quick schemes or valuable awards, or numerous calls for donations to unfamiliar charities
- A sudden inability to pay normal bills
- Requests for loans or cash
- Banking records that show cheques or withdrawals made to unfamiliar companies
- Secretive behaviour regarding phone calls.
If you suspect that someone you know has fallen prey to a deceptive telemarketer, don't criticize them for being naïve. Encourage that person to share their concerns with you about unsolicited calls or any new business or charitable dealings. Assure them that it is not rude to hang up on suspicious calls. Keep in mind that criminal marketers are relentless in hounding people - some victims report receiving 5 or more calls a day, wearing down their resistance. And, once a person has succumbed to this ruthless fraud, their name and number will likely go on a "sucker list", which is sold from one crook to another.
Advance Fee Fraud - Fraudulent Nigerian Schemes
The Nigerian Fraud scheme is one of the oldest continuous frauds. It reaches out to thousands of people and defrauds victims of billions of dollars a year.
Potential victims are persuaded to pay a "fee" in return for a substantial financial benefit under the pretence that the fee is needed to consummate a business deal or a transfer of a large sum of money. Victims are requested to provide a chequing account number and to complete a form with personal information. This information is then used to withdraw the requested amount of money from the victim’s bank account.
Here is how it works
People identifying themselves as a representative of the Nigerian government or a Nigerian telecommunications company have been sending letters, faxes and e-mails offering potential victims a chance to receive a substantial commission on funds being moved out of Nigeria. The majority of the letters have counterfeit postage.
After providing their bank account number, victims are then required to pay a remittance fee and perhaps legal fees to enable the Nigerian funds to be deposited into their bank account. Needless to say, no transfer of money is ever made.
Canada Post is fighting back
Canada Post Corporate Security has worked with the RCMP, Canada Customs and Nigerian postal officials to seize and destroy hundreds of thousands of the "advance fee" letters with counterfeit postage coming into Canada. This concentrated effort has resulted in a marked reduction in the amount of such letters being delivered to unsuspecting Canadians.
Fax-Fraud and E-mail Fraud
Nigerian fraudsters have now resorted to using the Internet, fax machines and couriers to get their "advance fee" scams to potential victims.
What can I do to protect myself?
Remember that legitimate marketers have nothing to hide. However, criminals will say anything to part you from your hard-earned money.
Be cautious
Always be careful about providing confidential personal information, especially banking or credit card details, unless you ar certain the company is legitimate. If you have doubts about a caller, your best defense is to simply hang up. It's not rude - it's smart.
If you're in doubt, it's wise to ask the advice of a close friend or relative, or even your banker. Rely on people you can trust.
Counter measures/Fighting back
- The Central Bank of Nigeria has launched a publicity campaign designed to alert the community to the problem of advance fee fraud (www.expdisc.com/cbn.htm).
- Another organization, the "419 coalition" maintains a web site with extensive information on advace fee frauds that is updated regularly and has links to other fraud prevention agencies (http://home.rica.net).
I don't want to become a victim - What can I do?
If you suspect you may be a target, or have already sent funds, contact:
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