FRAUD SCAMS

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Tax Scams Overview It is tax time again and fraudsters will use this opportunity to attempt to scam consumers and businesses out of their hard earned money. The most common approach fraudsters' use is impersonating the real Canada Revenue Agency (CRA). Whether by telephone or by email, the pitch involves one of two variations. The fraudsters are phishing for identification or asking that outstanding taxes be paid by a money service business or by pre-paid debit / credit cards. • There is notification by phone or email from the "CRA" claiming there is a refund pending.

In order for the recipient to receive the refund they must provide personal information. • Consumers and businesses receive a notification by phone or email that they owe "back

taxes" as the result of an audit. The payment must be made immediately to avoid a fine or the recipient is told there is an outstanding warrant that can be avoided if the payment is made promptly. In many cases, individuals are told they will be deported if the taxes are not paid right away.

Warning sign(s) - How to protect yourself • Do not take immediate action. Verify that what you are being told is the truth. • Ask yourself why the CRA would be asking for personal information over the phone or e-

mail that they likely already have on file for you as a taxpayer. • Contact the CRA to confirm that you in fact owe back taxes, or are entitled to a refund,

before providing any personal or banking information. • For more information about Fraud Scams involving the CRA visit the Canada Revenue Web

page at www.cra-arc.gc.ca/scrty/frdprvntn/menu-eng.html

Phishing scams Overview The word phishing comes from the analogy that Internet scammers are using email lures to 'fish' for passwords and financial data from the sea of Internet users. Phishing, also called "brand spoofing"; is the creation of email messages and Web pages that are replicas of existing, legitimate sites and businesses. These Web sites and emails are used to trick users into submitting personal, financial, or password data. These emails often ask for information such as credit card numbers, bank account information, social insurance numbers, and passwords that will be used to commit fraud. The goal of criminals using brand spoofing is to lead consumers to believe that a request for information is coming from a legitimate company. In reality it is a malicious attempt to collect customer information for the purpose of committing fraud.

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Warning sign(s) - How to protect yourself • Do not reply to any email that requests your personal information.

• Look for misspelled words. • Contact the financial institution immediately and report your suspicions.

Variation(s) Wire FraudsOne type of wire fraud currently targeting businesses is the Business Executive Scam (BES) which is a type of phishing. The potential victim receives an email that appears to come from their employer's human resources or technical support department. Fraudsters create email addresses that mimic that of the real departments. An email message will be sent to the accounting department advising that the "executive" is working off-site and has identified an outstanding payment that needs to be made as soon as possible. The "executive" instructs the payment to be made and provides a name and a bank account where the funds, generally a large dollar amount, are to be sent. Losses are typically in the excess of $100,000.00. Financial Industry wire frauds occur when Canadian financial institutions and investment brokers receive fraudulent email requests from what they believe to be an existing client. Unbeknownst to them, the email account of their client has been compromised. A request is sent by the fraudster to the financial institution/investment broker to have money transferred from "their" bank account usually to a foreign bank account.

Warning sign(s) - How to protect yourself • Beware of unsolicited emails from individuals or financial institutions presenting

an urgent situation requiring immediate attention. • Prior to sending any funds or product, make contact with existing clients in person

or by telephone to confirm that the request is legitimate. • Watch for spelling and formatting errors and be wary of clicking on any

attachments, they can contain viruses and spyware.

Phone number spoofing I received a call and my call display indicated a phone number 123-456-7890 or 777-777-7778 (or any other strange combination of numbers). This is a phone number that has been programmed into the system so your call display indicates a different number than the originators. Although this does not mean the offer you are receiving is illegal, you should certainly have a "red flag" approach to any offer. Why would a legitimate company try to obscure their identity?

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Automated dialers The phone is ringing but no one is there when I answer. Your phone may have a technical problem but you may also be receiving calls from an automatic dialer that logs the time the phone is answered. A telemarketer uses the information to indicate when a person will be at your number to answer the phone. For more information on Automatic Dialers you can research the CRTC web site.

Unsolicited service calls - general services Any false, deceptive or misleading promotion of services or solicitation for services. These scams typically involve third parties that make offers for telecommunications, internet, finance, medical and energy services. This category of scams may also include, but is not limited to, offers such as extended warranties, insurance and sales services. If you have received an unsolicited telephone offers or a card in the mail you should use the "buyer beware" philosophy. Educate your choices.

Warning sign(s) - How to protect yourself • Credit card charges from foreign banks appearing on your statement ranging from

$35.00 to $469.00. • Do you already have an existing warranty? • Have you checked with your car dealership? • How is the offer worded - does it make sense? Is it realistic? • Research on the internet.

Unsolicited computer repair services Generally, this scheme involves company representatives calling individuals and stating, for example, that it is Microsoft calling and that their computer is running slow or has viruses. They offer to repair the computer over the internet, which can involve the installation of software or the customers allowing the representatives remote access to their computer. Recent variation being reported to the CAFC have involved the suspects identifying themselves as the Canadian Cyber Incident Response Centre and have taken a more aggressive approach with individuals by stating their computer is being used by hackers and that they will be held responsible if they do not allow the suspect to repair their computer. Allowing a third party to download software or remotely access a computer carries inherent risks. Key loggers or other malicious software could be installed to capture sensitive data such as online banking user names and passwords, bank account information, identity information, etc.

Warning sign(s) - How to protect yourself • Unsolicited call representing computer repair-company (e.g. Microsoft) or

indicating that it is the Canadian Cyber Incident response Centre.

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• Caller requesting remote access to your computer or for you to view your event viewer.

• Urgent solicitation indicating there is a threat to your computer. • Protect your computer with anti-virus software, spyware filters, email filters and

firewall programs.

Unsolicited vacation offers Research the company with the Better Business Bureau and other sources from the internet. If you have not requested information then "buyer beware" should be your thought process. Don't fall for a high pressure sales tactic, if it's a deal, it will be available again. If it is a prize you need not pay for it. If your vacation call asks you to press a number like "9" or "5" it does not allow them to take over your residential line.

Warning sign(s) - How to protect yourself • Some of the solicitations are valid, some are not. • Some offers are subject to you entering into a Timeshare agreement. • Some offer a high end vacation but reserve the right to change this location

subject to availability

Unsolicited travel offers By simply filling out a ballot to win a vacation at a home, boat or auto show, you may be set up for "sucker’s lists". Shortly after filling out this ballot, you may be contacted over the phone by someone claiming to offer you a "free" or "low cost" vacation. They will ask for your credit card number and personal information in order to hold the vacation for you, or they may request money in advance.

Don't give out your credit card information over the phone. If you want to check out the value of these promises, seek out the advice of a legitimate travel agency in your area. If you have provided credit card information to the telemarketers, be aware that most companies have policies that allow you to cancel your reservation within 30 days.

Do not let anyone pressure you into committing to any agreement over the phone. Helpful Link(s) Always report phishing or 'spoofed' emails. If you've received one of these suspicious emails, report it to the CAFC or the financial institution that it appears to be from. • Visa • RBC Royal Bank 5

• Canadian Imperial Bank of Commerce (CIBC)

Advance payment scams Overview Advance fee fraud is when fraudsters target victims to make advance or upfront payments for goods, services and/or financial gains that do not materialize. Variation(s)

Foreign money offers Foreign money offers "requesting an urgent business transaction" usually the transfer of millions of dollars, are received by consumers and businesses via mail, email and fax. Commonly referred to as "Nigerian Letter Scams" or "West African Fraud Letters", the sender stresses the urgency, confidentiality and importance of trust and honesty to sway the reader into believing the validity of the request by claiming to be a Doctor and/or a corporate entity, possibly government, with a major corporation in Nigeria. Typically, after responding to the letter a new request for further information will follow along with the requirements and procedure to complete the transaction. The fraudster will normally ask for and advance fee to cover processing, in some cases arrange to meet in person to discuss the transfer. Most letters provide a breakdown, in percentage, of money each party will receive once the transaction is final. (i.e.: 30% to the account holder, 60% to the fraudster and his partners and 10% will be used in offsetting taxes, local and foreign expenses) Please contact CAFC by phone if contact has been made with a "Nigerian" representative. Letter (Inheritance) A very wealthy stranger has died and you are asked to assist with banking and to share the wealth. You may be asked to be a trustee or to stand in as a long lost heir of a deceased's fortune. A web site may even be provided so you can confirm the tragic death of some wealthy individual. The fortune may be said to be in cash in a safety deposit box, evidenced by a Certificate of Deposit. The message may have political overtones or refer to a Diplomat in another country who will broker the transfer of the money, often through some 'back door' arrangement. You may be provided an overseas phone number and asked to indicate whether or not you are interested so that alternative plans can be made should you decide not to participate.

Warning sign(s) - How to protect yourself Beware of tragic deaths and persons looking for your assistance in moving large amounts of money and to fulfill the role of trustee or heir. Legitimate estates do not solicit trustees or heirs in this manner and do not promise to carry out the exercise 'through the back door'. If someone promises you 20% of a fortune for doing little else 6

than provide banking details, it is too good to be true, and if it is too good to be true, it probably is not true. This inheritance scheme could end here with the takeover of your bank account and depletion of your funds by a number of fraudulent means. A second phase of the scheme could be invoked, in which you are asked to pay an up-front fee in order to collect your so-called inheritance. You do not normally pay money to collect money. CAFC advises consumers not to open unsolicited emails. Spam usually means scam and the message may contain a virus that can damage your computer. Copies of the letters (regardless of country origin) can be directly forwarded to CAFC via fax or by email.

900 numbers Overview The 900 scams are a variation on a prize scheme. The consumer is encouraged, usually through an offer in the mail, to call a 1 900 number in order to find out how much money he or she has won. The implication is that you have won a large prize - cash, cars, boats etc., and your brief phone call will confirm which prize is yours. You must take the time to read the offer carefully and understand your odds of winning. The CRTC advises that some telephone companies offer free services that will block access to all 900/976 numbers. For example blocking services for residential customers are usually free, but customers who change their mind may have to pay a $10.00 fee to remove the block and reactivate 900/976 services. Some companies charge a fee to block 900/976 services. Offers vary and customers should check with their telephone provider for details.

CBC: CRTC Improves Safeguards for 1-900 Users March 30, 2005 -- Ottawa -- The maximum per-minute fees that 1-900 psychic and betting hotlines can charge callers are being drastically cut as part of new safeguards announced by Canada's broadcast regulator on Wednesday. The Canadian Radio-television and Telecommunications Commission said it is introducing better protection for callers of services that typically include adult entertainment, chat lines, lines for horoscopes, soap opera updates, games of chance, trivia games and sport scores. Among the changes, the CRTC reduced the maximum rate that a 1-900 service provider may charge for calls to psychic lines from $10 to $6 per minute. Providers of games of chance services must tell consumers if there are other ways of playing the game that do not involve calling a 1-900 number. The maximum charge for a call is also being reduced from $25 to $5 per call. The regulator has also clamped down on the practice of 1-900 content providers prolonging calls to increase charges. Providers are prohibited from using programs

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that use repetitive scripts, long holding periods, excessive wording or long downloading features. The CRTC also announced that consumers must receive clear and complete information on charges at the outset of a call. Bills for 1-900 services must now fully describe all charges plus the time, date and duration of the call. The 1-900 content providers as well as telephone companies must also waive all "reasonably disputed charges" for first-time disputes, the CRTC said. The commission also clarified that telephone companies cannot cut off or threaten to cut off service for consumers who fail to pay charges for 1- 900 services. Copyright (C) 2005 CBC. All rights reserved

Pyramid scams Overview Pyramid scams are frauds that are based on recruiting an ever-increasing number of investors. The initial promoters (those at the peak of the pyramid) recruit investors who are expected to bring in more investors, who may or may not sell products or distributorships. Recruiting newcomers is more important than selling products. No new money is created in pyramid schemes. Investors who get in early take their profits from investors who join later. At some point, no new investors can be found and as a result the last investors, who are at the bottom of the pyramid, lose their money. They also face prosecution, as pyramid schemes are illegal. Before you invest any money in a multi-level company that could be a pyramid, get all the facts about the company, its officers and its products. Get written copies of the company's marketing plan, sales literature, contracts and prospectus (a legal document that gives prospective investors information about the company). Avoid promoters who fail to clearly explain their plans. Have a lawyer or accountant explain anything you do not understand. Find out if there is a demand for the product, or if there are similar products on the market. Remember that the greater the promised return, the greater the risk.

Pyramid schemes are illegal under the Competition Act, and serious charges may be brought against you if you are operating or affiliated with one of these schemes. Effective January 1, 1993, Industry Canada made amendments to the Competition Act, Section 55. A multi-level sales procedure is a pyramid if:

Warning sign(s) - How to protect yourself • There is compensation paid for recruiting a new salesperson. • There is inventory loading, that is, the recruits must purchase an unreasonable

quantity of product.

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• Purchases are required as a condition of entry. (You may, however, be required to pay for a sample kit, but this kit must be at cost.)

Money mules Overview A money mule is a term used to describe an individual who is recruited by scammers to serve as an intermediary to transfer stolen funds. The mule may or may not be aware that they are being used. Their function is to transport fraudulently gained money to insulate fraudsters, thus making it more difficult to identify the criminal. There is no set method of transfer; it can be done in person through a Money Service Business, courier services and regular mail or electronically through the banks or an email. Mules are paid for their services, usually receiving a small percentage of the money transferred. . Since April 2014, the Canadian Anti-Fraud Centre has been tracking money mule related complaints. To date 25 complaints have been received with 15 of those reported as victims with a total dollar loss of $35,216.96.

Warning sign(s) - How to protect yourself • If you receive funds for any reason from an unknown individual or company and

you are asked to forward it elsewhere - DON'T! Chances are you are dealing with a scammer.

• Be aware of offers for employment from what appears to be a legitimate employer, they will place ads looking for a "Financial Officer". Usually involves collecting payments for the new employer and forwarding the money to a different country.

• Victims of romance scams have been used as money mules as their "loved one" is working in a foreign country and needs assistance to collect funds. Never send money, it's a scam.

• Consumers that have won a fake lottery receive advance payments on their winnings and are asked to forward it to a "financial office" to cover fees or taxes.

• Any request to conduct unusual or questionable transactions on behalf of a third party should be questioned.

Lottery There is an ever-growing number of scam lottery emails advising consumers they have won a jackpot. We ask that you consider the following when you receive a solicitation of this kind as lotteries do not; notify winners by email, randomly select email addresses to award prizes to, use free email accounts (Yahoo, Hotmail, etc.) to communicate with you, tell you to call a mobile phone number, tell you to keep your winnings secret, ask a winner to pay any fees up front (like taxes or a security deposit) to receive a prize, lottery or sweepstake! You cannot win without first buying a lottery ticket! 9

Prize pitch Consumers are told they have been specially selected to win a prize, or have been awarded one of three or two of five prizes. These prizes usually include cash or a vehicle. You must purchase a product and pay in advance to receive your prize. These products may include; coin collections, personalized pen sets, etc. The products are generally cheap or overpriced, but may sound valuable over the phone. Remember, in a legitimate contest you do not have to purchase a product to qualify for a prize.

Prize pitch recovery If you were a victim of the prize pitch scheme, you are likely to be called again by someone promising to get your money back for you. Be careful not to lose more money to this common practice.

Example(s) Law Enforcement A caller claiming to be a law enforcement officer tells you that money has been seized, and that their records indicate that you have lost money to the company or companies. They will help you recover the money you have lost for a small fee. If money is seized, you will be advised by a police agency but they will never request money in advance for any reason. Company Acquisition The caller may claim that they have bought out a particular company that promised you prizes that were never sent to you. They are an honest company, and they are eager to get those prizes right out to you if you can pay some related costs. Sample(s) Fraudulent use of the Royal Canadian Mounted Police letterhead or logo.

Sweepstake After entering a fake sweepstakes contest, you will receive a call within two to four weeks from a fraudulent telemarketer. This person will usually identify themselves as a lawyer, judge, customs agent or other official. They will represent themselves as an agent for a particular company. You will be told that you have won a large cash award, but money must be sent up front for taxes, etc.

Loan Ads that promise loans generally appear in classified sections of local and national newspapers, magazines and tabloids. Some companies claim they can guarantee you a loan even if you have bad credit or no credit. They usually request an up-front fee, which may range from hundreds to thousands of dollars. Once you send your money to these companies, you never get 10

your promised loan and you cannot get your money back. If you cannot get a loan through traditional lending institutions, it is unlikely that you'll get one in response to a classified ad. Ask the loan company to take the amount of their fee off of the total amount of the loan that was promised you. In most jurisdictions, it is illegal for a company to request an up-front fee prior to obtaining a loan. Remember: simply advertising through recognized media outlets does not ensure the legitimacy of the company behind the ad.

Employment offers Any false, deceptive or misleading solicitation offering employment and requesting an advance fee to secure the job or obtain the materials to perform the job or any job offer involving money transfer or wiring funds related to cashing monetary instruments. The "mystery shopper" scam is still victimizing Canadian consumers. The victim answers an enticing ad to become a mystery shopper. The "employer" sends a letter, with mystery shopping tasks to be completed, and a cheque to help the victim fulfill his/her mystery shopping tasks. The victim will likely cash the cheque he/she was given first. One of the tasks will be to use a money transfer company and wire a large portion of the money to a name provided, in order to test the company's procedure and customer service skills. The victim will find out later that the cheque is counterfeit, thus making the victim accountable to pay for the funds he/she wired.

Puppy classifieds Classifieds adverts targeting dog lovers with the promise a puppy when all the necessary fees are paid. Adverts, using stolen pictures, are placed in newspapers or the Internet and usually involve someone that has moved or is moving or resides in another country. The seller will ask for money in advance and refer them to a money wiring service such as Western Union or Money Gram. The advance fee in this case, being for the purchase of the puppy, shipping and customs charges. The buyer waits for few days and when they do not receive the puppy attempts to contact the seller, but with no answer.

Warning sign(s) - How to protect yourself Know whom you are dealing with, independently confirm your seller's name, street, address, and telephone number. Resist pressure to "act now." If an offer sounds too good to be true it usually is. If the buyer wants to use a service you have not heard of, be sure to check it out to be sure it is reliable. Check its Web site, call its customer service hotline, and read its terms of agreement and privacy policy. If you do not feel comfortable with the service, do not use it. Contact your local office of the Better Business Bureau) The Canadian Anti-Fraud Centre.

Emergency scams 11

Overview Though the "Emergency Scam" (or sometimes referred to as the "Grandparent Scam") has been around for years, the Canadian Anti-Fraud Centre warns the public to be on alert after noting a marked increase in the number of complaints in the last two months. In the typical scenario, a grandparent receives a phone call from a con-artist claiming to be one of his or her grandchildren. The caller goes on to say that they are in some kind of trouble and need money immediately. Typically they claim being in a car accident, trouble returning from a foreign country or they need bail money.

A typical call can go something like this: Con-artist: Hi, Grandma/Grandpa. Victim: Hi. Con-artist: Do you know who this is? Victim: John? Con-artist: Yeah.

Victims don't verify the story until after the money has been sent as the caller specifically asks that they do not want other relatives to know what has happened by asking "Can you please help me? I'm in jail (or in the hospital / or in some type of financial need). But don't tell Dad. He would kill me if he found out, please send the money ASAP. I'm scared" Wanting to help their grandchild, the victim sends money by a money transfer company such as Money Gram or Western Union. Variations on the scam exist such as an old neighbour, a friend of the family etc. but predominantly the emergency scam is directed toward the Grandparents. In 2007, 128 consumers reported this scam to the CAFC. From January to August 31st 2008, 317 complaints were reported to the Center with the majority reported (155 complaints) in July and August 2008. The Canadian Anti-Fraud Centre (Phone busters) was established in January 1993 and is jointly operated by the Royal Canadian Mounted Police, the Ontario Provincial Police (OPP) and the Competition Bureau Canada. The CAFC is a national call centre where victims can report fraud complaints. The information is used to assist in investigations. The Canadian Anti-Fraud Centre plays a key role in educating the public about specific fraudulent mass marketing and identity theft pitches. It also helps to prevent similar crimes from taking place in the future through its ability to identify emerging trends.

Romance scams Overview Any individual with false romantic intentions towards a victim and by gaining their affection and trust (sometimes with the promise of marriage) gain access to the victim's money, bank account, credit cards or in some cases by getting the victims (usually unknowingly) to commit fraud on their behalf.

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In 2011, Romance scams emerged as highest grossing scam, with over 12 million in losses reported by Canadians. This scam has also lead to incidents of suicide in cases where victims have lost their life saving and have been emotionally destroyed. These scams have proliferated with the increase use of social media – social networking sites and dating sites. These sites are most common with scams that require a level of trust between the victim and the fraudster. In the Romance scam the fraudsters have demonstrated that they are willing to develop the relationship over extended periods of time. This increases the trust level between the victim and fraudster and will result in higher dollar losses. This also results in a negative social impact on the victim as they have developed emotional and psychological attachment to the fraudster. Generally, Romance scams involve the victim and the fraudster meeting through a social networking site. The fraudster will gain the trust of the victim through displays of affection. While the fraudster is usually located in a faraway country, eventually want to meet the victim in person. It is at this time the fraudster will advise they can't afford to travel and will seek assistance from the victim in covering travel cost. Other variations include the fraudster presenting situations of emergency/ urgency, such as a sick family member, and seeking financial assistance from the victim for various costs. Some incidents have also occurred at the local level and involved the victims actually meeting the suspects to go out on dates and meeting at the victim residence. These cases are creating concerns for personal safety. For example, in one incident the victim reported having her wallet and some jewelry stolen from home.

Warning sign(s) - How to protect yourself • Distressed citizen worried about a loved one. • Talking about good friend or loved one in another country that is coming to visit or

needs help. • Mentions Western Union or MoneyGram. • Frequenting the bank more often. • Making unusual withdrawals both in amounts and frequency. • Making multiple withdrawals ranging from $500- $3000 in Cash. • Making large dollar wire transfers to countries in Africa, Asia or Eastern Europe.

How do I report spam? The Canadian Anti-Fraud Centre advises consumers not to open unsolicited emails or when the sender is unknown. Spam and related violations (for example: phishing, malware, deceptive marketing, etc.) can be reported to the enforcement agencies (the Canadian Radio-television and Telecommunications Commission, the Competition Bureau, the Office of the Privacy Commissioner of Canada) through the Spam Reporting Centre at www.fightspam.gc.ca.

• Requests for loans or cash. 13

• 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 telemarketers 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.

Overpayment scams Overview Fraudulent cheques are used in a variety of scams such as advance fee letter fraud, overpayment and prize pitch to name a few. Overpayment scams is the type of fraud where the person receiving the cheque is actually owed money for goods sold. The seller receives a counterfeit cashier's cheque personal cheque or corporate cheque from the "purchaser" in an amount in excess of the amount owed; is asked to deposit the cheque and wire the excess funds immediately back to the sender/purchaser or the purchaser's agent or shipper; and, the deposited cashier's cheque is subsequently returned as counterfeit and charged back to the seller's account. Anyone selling goods should be suspicious of any cheque, especially if it is for more than the agreed selling price. Consider an alternative method of payment, such as an escrow service or online payment service. Talk to your bank about the safest way to receive funds from overseas. To protect yourself against this sort of scam, never agree to a deal in which the payer wishes to issue an amount for more than the agreed price and expects you to reimburse the balance. The scammers use a variety of excuses to explain the overpayment, but any such excuse should be treated with the utmost suspicion. In order to avoid overpayment scams, remember the following general words of advice: Warning sign(s) - How to protect yourself

• Know who you are dealing with; independently confirm your buyer's name, street address, and telephone number;

• Never accept a cheque for more than your selling price; • Never agree to wire back funds to a buyer. A legitimate buyer will not pressure

you to do so, and you have limited recourse if there is a problem with a wire transfer;

• Resist pressure to "act now." If the buyer's offer is good now, it should be good when the cheque clears; if you accept payment by cheque, ask for a cheque drawn on a local bank or a bank with a local branch. You can visit that bank branch to determine if the cheque is legitimate; if the buyer wants to use a

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service you have not heard of, be sure to check it out to ensure it is reliable. Check its Web site, call its customer service hotline, and read its terms of agreement and privacy policy. If you do not feel comfortable with the service, do not use it.

Identity theft and identity fraud Overview Maybe you never opened that account, or ordered an additional card, but someone else did....someone who used your name and personal information to commit fraud. When an imposter uses your name, Social Insurance Number (SIN), credit card number, or some other piece of your personal information for their use - in short when someone appropriates your personal information without your knowledge - it's a crime, pure and simple.

What is identify theft? Identity theft refers to the preparatory stage of acquiring and collecting someone else's personal information for criminal purposes. As of January 8, 2010, Senate Bill S-4 became law, making it illegal to possess another person's identity information for criminal purposes. Identity theft techniques can range from unsophisticated, such as dumpster diving and mail theft, to more elaborate schemes. Technology, mainly the Internet, facilitates more elaborate schemes, such as skimming, phishing, and hacking as criminals gather profiles of potential victims. Computer spywares and viruses, designed to help thieves acquire personal information, are an emerging trend.

Warning sign(s) - How to protect yourself • A creditor informs you that an application for credit was received with your

name and address, which you did not apply for. • Telephone calls or letters state that you have been approved or denied by a

creditor that you never applied to. • You receive credit card statements or other bills in your name, which you did

not apply for. • You no longer receive credit card statements or you notice that not all of your

mail is delivered. • A collection agency informs you they are collecting for a defaulted account

established with your identity and you never opened the account.

What is identity fraud? Identity fraud is the actual deceptive use of the identity information of another person (living or dead) in connection with various frauds (including for example personating another person and the misuse of debit card or credit card data). Criminals can use your stolen or reproduced personal or financial information to:

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• Access your computer. • Access your email accounts. • Access your bank accounts. • Open new bank accounts. • Transfer bank balances. • Apply for loans, credit cards and other goods and services. • Make purchases. • Hide their criminal activities. • Obtain passports or receive government benefits.

There is no reason to be paranoid; there's just reason to be careful. If someone wants desperately to target you, they can probably get a lot of information about you -- so you just need to minimize the criminal's opportunities to get that information. You can make yourself a harder target and that is the best defense. If you are a victim, do not panic, in most cases you will not be out any money. When you've been careful about disclosing your personal information the losses will likely be attributed to the banks and or companies associated with the fraud. While you probably can't prevent identity theft entirely, you can minimize your risk. Identity theft is on the rise and it can happen to anyone. It can happen to you. By managing your personal information wisely, cautiously and with an awareness of the issue, you can help guard against identity theft.

Warning sign(s) - How to protect yourself • Identity theft can occur over the Internet or telephone, or via fax or regular

mail. Therefore, be particularly wary of unsolicited e-mails, telephone calls or mail attempting to extract personal or financial information from you.

• Ask yourself if you really need all of the identity documents you carry in your wallet or purse. Remove any you don't need and keep them in a secure place instead.

• Periodically check your credit reports, bank and credit card statements and report any irregularities promptly to the relevant financial institution and to the credit bureau.

• During transactions, it's safer to swipe your cards yourself than it is to allow a cashier to do it for you. If you must hand over your card, never lose sight of it.

• Always shield your personal identification number when using an ATM or a PIN pad.

• Memorize all personal identification numbers for payment cards and telephone calling cards. Never write them on the cards.

• Familiarize yourself with billing cycles for your credit and debit cards. • Trash bins are a goldmine for identity thieves. Make sure you shred personal

and financial documents before putting them in the garbage and. 16

• When you change your address, make sure you notify the post office and all relevant financial institutions (your bank and credit card companies).

False charities Overview In Canada we have a long and honourable tradition of voluntary giving to those in need, often through charity organizations. But if an unfamiliar charity organization contacts you - by mail, phone, or Internet - be careful. Bogus charities often use names that are very close to the names of legitimate and respected charities. The end of the year is the peak season for charity appeals. It also is the peak season for the bogus charity appeals.

Warning sign(s) - How to protect yourself • High pressure or threatening telemarketers who want you to contribute

immediately. • Someone calls and thanks you for a pledge you don't remember making. • Copycat names. Names that might be misleading or deceiving. • If you receive a telephone call, ask for the information to be sent to you in

writing. Ask how much of your gift will be used directly for the charity. Ask how much will go toward administrative costs. Legitimate charities have no problem giving you this information.

• Remember on an incoming call a person could be misrepresenting a legitimate charity.

• Never give out your personal / financial information out over the phone, or at the door. You may wish to make out a cheque payable to the charity. You can mail the cheque later.

• Call the charity. Find out if they know about the appeal and have authorized it and what percentage of your donation they will receive from your donation. Perhaps there is a better way to give, where 100% of your donation will reach the charity.

• Ask if the charity is registered. Contact Revenue Canada at 1-800-267-2384 or search online.

• Ask them to give you the charitable tax number of the charity. Question any discrepancies.

• At the beginning of each year decide which charities you can afford to donate to - send your checks directly to their head office, and feel good about giving. When approached you can say that you have already given and leave it at that. Perhaps you will consider their appeal next year when you decide on the charities you can afford to give to.

Investment scams Overview 17

Investment scams are not only "boiler room frauds" (Boiler room fraud traditionally refers to a room that is selling an investment opportunity in stock that may or may not exist. In the context of mass marketing fraud, boiler room fraud is not limited to scams involving victims who are persuaded to invest money in shares or other investments that are either worthless or non-existent. These types of scams are categorized as investment scams and are one of many Mass-marketing fraud scams being reported to the Canadian Anti-Fraud Centre). An investment scam is any solicitation (telephone, mail, email, etc) for investments into false, deceptive or misleading investment opportunities, often referring to higher than normal or true monetary returns which consumers lose most or all of their money. In 2011, 167 victims reported more than 15.62 million dollars in losses to investment scams. This represents a 51 percent increase in reported dollar loss since 2009, when 10.33 million dollars in losses were reported by 131 victims and a 27 percent increase in victim reporting. The average loss per victim is more than $93,000.00, but the CAFC data only represents a fraction of loss when compared to 50 million dollars in losses associated to the Earl Jones Ponzi scheme or the 300 million dollars in losses associated to an international Ponzi scheme run by Milow Brost and Gary Sorenson. Canadians between the ages of 50 and 60 represent the most at risk group to fall victim to an investment scheme, followed by those in their forties. Canadians were also most likely to invest when solicited or referred by a friend. Telemarketing solicitations represent 14 percent of the reports received by CAFC in 2011. Types of investment reported to the CAFC included ponzi schemes, franchise opportunities, futures trading, multi-level marketing opportunities, mortgage investment opportunities and pump and dump schemes. The most common pitches were offers in "green energy projects" and gold. Many victims reported sending money to accounts in the United Kingdom, Panama, New York, Indonesia, Hong Kong, and Canada.

Warning sign(s) - How to protect yourself • Talking about a great investment opportunity with a friend or associate. • Talking about an investment opportunity with higher than normal returns. • Talking about an investment opportunity made over the telephone. • Displays of urgency to make an investment, they don't want to miss out. • Clients have done limited due diligence and have little knowledge about the

investment. • Clients that don't have a contract or agreement about the investment. • Making unusual withdrawals both in amounts and frequency. • Making large dollar wire transfers to foreign countries for an investment.

Counterfeit products and cheques Overview

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eCommerce In January 2011, the Canadian Anti-Fraud Centre (CAFC) started receiving a small number of complaints from Canadians reporting that had been deceived by e-commerce websites selling counterfeit or questionable goods. Subsequent follow up with some of the intellectual property holders found that there are thousands of fraudulent businesses selling counterfeit merchandise on the web. Fraudsters are spoofing legitimate retailers websites such as Canada Goose, Ugg Boots, Lululemon, Arcteryx, Michael Kors, Coach and many more. Fraudsters have become proficient in producing web sites that have the same look and feel as the legitimate manufacturer. In 2013, the Canadian Anti-Fraud Centre (CAFC) received 1,143 complaints on deceptive marketing of counterfeit goods. Of the 1,143 complaints, 1,401 are classified as victims having a total reported dollar loss of $352,826.11 (average loss of $251.84 per victim).

Warning sign(s) - How to protect yourself • Consumers should do their due diligence and thoroughly research an online

store or website prior to making a purchase. • Confirm that you are dealing with the actual manufacturer and look for any

warnings posted on their site. • Use a credit card when shopping online, customers are offered protection and

may receive a refund. • Inspect the web site thoroughly. Often counterfeit sites will contain spelling

mistakes and grammatical errors. • Online manufacturers generally use their own company email account. If a web

based email like Gmail, Hotmail or Yahoo is listed on the web site under their contact details, this is a red flag and further research is recommended.

On-line auctions such as eBay In 2011, On-Line Auctions & Shopping Scams was the second highest grossing scam, with $8million in losses reported by Canadians and will continue to have a financial impact in 2012. Counterfeited merchandise purchased through On-Line Auctions & Shopping Scams continues to undermine consumer confidence on Canadian Economic Integrity. Some merchandise on-line is counterfeit and could result in personal injury such as pharmaceuticals. Personal and/or financial information could be compromised which can lead to ID Theft. Unknowingly purchasing stolen goods.

Warning sign(s) - How to protect yourself 19

• Check the seller's feedback that you are considering buying from. Do not buy from a new or seller with negative reviews.

• Consumers are encouraged to deal with companies or individuals that they know by reputation or from past experience. If the consumer is not familiar with a particular company, independently verify their physical address and phone number.

• Never make a deal outside the auction site. • Read the terms and conditions, understand payment options, return policy and

product warranty. • There are many ways to send money, but not all of them offer fraud protection.

Verify the fraud coverage with the payment method that you choose to use. Use an Internet Payment Service or

• Pay by credit card is often the most secure.

Energy conservation products (Power Saver) According to the Competition Bureau Canada, there are a number of companies that are selling energy conservation products. Consumers are misled into thinking the Power Saver is a way to improve the efficiency of electrical appliances by helping to "stabilize" voltages and reduce currents on power supplies / appliances of consumer's household. Typical performance claims are savings on Hydro between 25% and 50%. Numerous complainants have reported that this product does not work. These companies are currently contacting Canadians by telephone and often claim to be a local or provincial power company. Consumers interested in the product are instructed to pay through multiple methods including cheque, money order, or credit card. More than 300 complaints have been received since 2006 on solicitations involving a Power Saver Device. While total reported dollar losses are low, approximately $45,000 to date, it is likely that many consumers may not be reporting given the low cost of the device. The devices are being sold on average for $150.00. In May 2011, the Electrical Safety Authority issued a consumer warning indicating that the products offered by one of the companies, Hydro Power Saver, "are unapproved, not tested to any Canadian Safety Standards and do not bear any recognized certification mark in Canada. ESA requests consumers to stop using these products immediately." Warning sign(s) - How to protect yourself

• Unsolicited telephone calls claiming to be your local or provincial hydro company and offering a device to lower electricity costs.

• Caller requesting information from your hydro bill • Credit card transaction ranging from $130.00 to $189.00 • Product purchased does not have any Canadian Safety Standards markings

Hotel Scam Creativity wow!! 

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Protect yourself Remember, legitimate telemarketers have nothing to hide • However, criminals will say anything to part you from your hard-earned money. • Be cautious. You have the right to check out any caller by requesting written information, a

call back number, references and time to think over the offer. Legitimate business people will be happy to provide you with that information. After all, they want the "bad guys" out of business too. Always be careful about providing confidential personal information, especially banking or credit card details, unless you are certain the company is legitimate. And, 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.

Remember, you can Stop Phone Fraud - Just Hang Up! 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 The caller asks for all your confidential banking and/or credit card information. Honest businesses do not require these details unless you are using that specific method of payment.

You must give them your private financial information "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.

Will that be cash... or cash? The caller asks for all your confidential banking and/or credit card information. Honest businesses do not require these details unless you are using that specific method of payment.

The manager is calling 21

Often criminal telemarketers 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 person calling claims to be a government official, tax officer, banking official, lawyer or some other person in authority. The person calls you by your first name and asks you a lot of personal or lifestyle questions (like how often your grown children visit you?).

The stranger calling wants to become your best friend 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.

Report an incident It's not always easy to spot a scam, and new ones are invented every day. If you suspect that you may be a target of fraud, or if you have already sent funds, don't be embarrassed - you're not alone. If you want to report a fraud, or if you need more information, contact The Canadian Anti- Fraud Centre:

Ways to report fraud By PhoneToll Free 1-888-495-8501 Hours of operation Monday-Friday 9:00 a.m. - 5:00 p.m. Eastern Time 22

You can report fraud to your local RCMP office by calling 867-667-5551

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