Money Minute: Canada’s top scams

It must be hard being a Nigerian prince. I mean, every time you try to get someone to stash your cash – for a nominal fee, of course (wink!) – in an overseas bank account, you’re hit with skepticism thanks to all those scam artists trying to rip-off the average non-Nigerian-prince-knowing Canadian.

These are the same sort of Canadians that account for the $70 million fraudsters pocketed in 2014, according to the Canadian Anti-Fraud Centre. Which is why Canada’s growing fraud problems – scam artists claimed $53 million in 2013 – keep Phil Norris, spokesperson for the Competition Bureau, up at night.

“Fighting fraud is a never-ending battle, it does not discriminate, and no one is immune from it,” says Norris. “What that means is that whatever your education or income… no matter where you live, you can still fall victim to fraud.”

And the perpetrators are only getting better at it.

“Naturally, with the rise in popularity of online purchasing and social media use, we have seen a shift away from traditional mail and telemarketing scams,” says Norris. “More and more fraudsters have turned to using social media and creating deceptive representations on the Internet.”

Case in point – astroturfing, which although it sounds like the futuristic sport of surfing in space actually refers to posting fake reviews on social media or online sites like Yelp to boost (or in some cases hurt) businesses.

“Astroturfing is a relatively new phenomenon,” he says adding that anyone who comes across it should report it to the Competition Bureau.

In light of the swindlers ever-changing ways, the Competition Bureau banded together with Fraud Prevention Forum Partners, the Better Business Bureau and the Vancouver Police Department to highlight some of last year’s top scams. Here are four timely ones:

The “cooling off” period

The ruse is simple enough, scammers offer a “cooling off” period when selling a car, which lets you change your mind. The truth is, there’s no such thing, it’s just a hook to get you to hand over your cash before you’ve checked into a vehicle’s accident history or true mileage.

The charity case

Post-Ebola scare, over 100 fake charities appeared online asking for help on behalf of families and victims, according to the Competition Bureau. This one seems pretty self-explanatory, only give to the charities you trust and if you’re feeling charitable do a little online sleuthing.

The identity theft

With more than 90 per cent of Canada’s population being plugged in to the Internet, identity theft is in open season. This scam works with fraudsters calling from “Microsoft” informing you there’s a virus on your computer. Although your knee-jerk reaction is likely “who calls anyone anymore?” some have given up personal information in a bid to protect their… uh, personal information.

The fake friends

If you’re like Drake, chances are you already know all about fake friends or maybe you’ve just seen the friend requests from strangers. It may even seem personal. But in the event it’s a social media bot and you “friend” it, your Facebook profile and personal information is free for collecting and could be used to tap into more valuable sections of your online identity like Internet banking.

“Law enforcement officers need people to tell their stories. It does take some courage to come forward, the Bureau recognizes that, but that is the best weapon against fraud,” adds Norris. “Every time a fraudster is put behind bars, we count that as a win—a win for both consumers and legitimate businesses.”

Tune into this week’s Money Minute with Ashleigh Patterson for more insight on the top scams in Canada.