Romance, employment scams again top list of 10 most common frauds
Police and RCMP say a broad range of scams turned unwary citizens into victims in 2016, costing those victims more than $91 million nationwide.
The Vancouver Police Department and Better Business Bureau released details of the top-10 scams recorded across the country last year.
Topping the list was the so-called employment scam, costing victims more than $5 million annually as they followed directions from what they believed was a new employer. The victims sent money to the company after being told their first cheque contained an overpayment.
The top 10 scams and ways to prevent becoming a victim: 10. Fake online endorsements and sponsored content: Consumers are enticed to purchase a product or service based on reviews by social media influencers. The reviews may not be genuine and the influencer may have been paid to do it. BBB advises consumers to read everything online with a “grain of salt.” 9. Canada Revenue Agency scam: The No. 1 scam of 2015 is still on the 2016 list. A crackdown on a call centre in India has seen a dramatic decrease in the number of calls targeting Canadians. BBB reminds consumers that CRA does not make threatening phone calls and neither does it request information by phone or email. 8. Fake lottery winnings: If you didn’t enter, you can’t win. These calls come at all hours and claim you’ve won a big U.S. lottery, but you need to pay a tax or insurance fee before you get your millions. BBB warns people “do not ever pay to receive lottery winnings.” Contact the corporation directly. 7. Binary options scam: Big promises of low risk, high returns and full refunds entice Canadians to take a chance on an unregulated 50-50 bet on a stock’s performance. They delay winnings — if you win at all. BBB asks consumers to understand that high risk is involved and to seek professional investment advice. 6. Wire fraud/spearphishing: Spearphishing is a big problem for the business community. Millions are lost when scammers pose as company brass and demand money be wired to a fake company email. Businesses must find payment redundancies and be vigilant of any incoming emails. 5. Online purchase scams: Counterfeit merchandise, goods that never show up, fake websites, and free trial traps are everywhere. Shop on legitimate websites and use third-party payment portals and other secure website payment options, like PayPal. 4. Advance fee loans: Paying an upfront fee to get a loan is illegal in Canada and the U.S. These scammers prey on those who don’t qualify for loans through reputable lenders. Seek alternative financing.
3. Identity fraud: Scammers steal a person’s identity to secure credit cards, bank loans, and even rent property in their name. Even children are susceptible to identity fraud. Never carry your social insurance card with you and change your online passwords regularly.
2. Romance scams: Online dating is big business for scammers. Catphishing is when a fraudster fakes an identity and tricks someone, using a dating site, into a phoney emotional or romantic relationship for financial gain. Don’t wire money to people you have never met. If they are out of the country or you have never met in person, run the opposite way. 1. Employment scam: The most reported scam to the BBB involves people getting a job they haven’t applied for — generally a job you do from home. People are asked to deposit cheques and to send money back to the company. Research the companies before accepting. If you are asked to deposit cheques to send money back, it’s a scam.