Several forms of fraud continue to victimize locals
Police are reminding local residents to be vigilant against frauds, scams and schemes to avoid being victimized.
Fraud is a multi-billion dollar industry in North America. March is Fraud Prevention Month. On Thursday, Const. Paolo Magliocco of the Economic Crimes Unit held a media availability to discuss some of the more common forms of fraud seen in Lethbridge recently.
Locally, Lethbridge Police investigate many cases of credit card fraud, identity theft, counterfeit currency and trending scams including the CRA scam, romance scams, CEO fraud and advance payment fraud. In 2017 LPS received 580 fraud reports, up just slightly from 534 in 2016.
“We are (also) seeing an increase in vehicles that are obtained fraudulently,” said Magliocco. “Dealerships are being targeted by people with fake ID, and they are buying vehicles. The dealership is usually unaware until later on, when police stop the vehicle, we get a tip from the public, are we see it for sale (online).”
Car dealerships should ensure they protect themselves from fraud by confirming the identity of any prospective customers.
Credit card fraud, particularly tap fraud and “card not present fraud,” cost VISA, MasterCard and Amex $939.3 million in Canada in 2016.
Romance scams accounted for nearly $220 million in losses in Canada in 2016 and are committed online by fraudsters who befriend people on dating sites.
“Unfortunately, victims meet someone online and then release money to them for some reason,” said Magliocco. “And, of course, they never meet, and it’s usually all faked.”
CRA tax scams involve victims receiving a phone call, email or text from the fraudster asking for money owed in back taxes. The fraudster will usually threaten jail time, fines and that the police will be at your door in moments to arrest you. They will also ask that you make payment back in gift cards or iTunes cards. This scam costs Canadians millions of dollars every year.
The CRA will never ask for repayment of back taxes in these ways, nor will they threaten jail time or fines. If you are suspicious, contact the CRA directly for information prior to sending any money.
Other scams that occur locally include winning a lottery, such as STARS, being hired as a “Secret Shopper” and phishing emails to obtain banking and other account or personal information.
Business E-mail Compromise (BEC) fraud, also known as CEO fraud, consists of phishing emails and has become a major problem in Canada and worldwide.
A typical BEC scam will persuade an employee of a company to wire transfer money to an account. The unsuspecting employee will send the money on the direction of the CEO, only to discover later the company has been defrauded of the money. Locally, LPS has investigated several BEC incidents and in each case the businesses were defrauded large sums of money.
Fraudsters use creative and complex ways to scam money out of possible victims so it’s important to always be vigilant:
• If you receive suspicious emails, delete them.
• If you are unsure of the legitimacy of a telephone call, or feel harassed or threatened — even if the caller sounds official — hang up.
• If you receive something suspicious in the mail asking you for personal information, throw it away.
• Above all, do not forward money or personal information to anyone, unless you are certain of the legitimacy of the recipient.
• Protect your information, protect your money and protect your identity. Ensure your mail is not in a place that could be easily seen and stolen.
• Conduct regular Equifax and Trans Union checks on yourself to ensure no one has stolen your identity and taken credit out in your name.
• Shred and destroy all personal documents and information prior to discarding it.
• Please report all instances of fraud to police.
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