Calgary police caution of recent increase in bank-fraud scams

Calgary police are warning the public of a rise in scams involving phone calls from people posing as bankers.

The recent trend has involved scammers calling land lines, rather than cellphones, according to police.

That’s because home lines allow for a phone call connection to remain live even if one person hangs up, as opposed to cellphone connections that are immediately terminated if one person ends the call.

There were 43 reported incidents of bank fraud scams in 2018, compared with nine the previous year. Calgary police say there were 17 such incidents in the first six months of 2019, resulting in a reported net loss of $73,800.

Last year, victims of bank fraud scams reported a total of $641,414 in losses to Calgary police, a 60 per cent increase in the amount of money lost from these kinds of scams from the previous year. That figure totalled $256,412 in 2017.

According to police, the scam often involves a person answering a call from someone who tries to convince them that their help is needed to identify fraudulent activity on their account.

While on the line with the victim, the scammer instructs them to make purchases using their debit or credit card, usually of gift cards, to help the “bank” determine which activity on the account is “genuine” and which is “fraudulent.”

If the victim challenges the scammer or questions the validity of the call, the scammer may ask the victim to look on the back of their bank card for a phone number, which is a customer service number for the credit or debit card company.

The victim is then told to hang up and immediately call that number.

Since a land line connection doesn’t terminate when only one person hangs up, it allows the scammer to remain on the line and listen to the victim dial the number.

The scammer “answers” as the bank or as the “account investigator” and will then try to obtain personal and financial information from the victim as part of the supposed investigation.

“A legitimate financial institution will never call a person and seek their assistance in conducting an investigation, especially if the ‘investigator’ requires the victim to make a purchase at the direction of the caller,” Calgary police said in a statement.

“Ensure the phone line has truly gone dead and wait for a dial tone before calling a verified phone number, especially if directed by an unidentified caller. Be cautious of what information you provide to a caller. A scammer will often prompt you to provide them with information and then use that information later in the call to appear legitimate. Never give out personal information to people you don’t know and trust.”

A legitimate financial institution will never call a person and seek their assistance in conducting an investigation.