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These are the online scams you should be on alert for

[...okay so this guy probably isn't really stealing your information. But real people are trying to take advantage of others online.]
[…okay so this guy probably isn’t really stealing your information. But real people are trying to take advantage of others online.]

Most Canadians like to think they’re a savvy bunch, but we’re no strangers to getting scammed.

The number of victims and reported dollars lost related to mass marketing fraud increased from 2012 to 2014, according to the Canadian Anti-Fraud Centre.

The centre’s annual statistical report from 2014—its most recent available—found that Canadians between the ages of 60 and 69 are the most targeted group by fraudsters, while those aged 50 to 59 reported the highest dollar loss.

And while phone or fax approaches were the most prevalent types of scams, email and Internet methods had the highest total reported dollar loss.

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Overall, Canadians lost more than $74 million to mass marketing fraud in 2014 alone.

If you’ve fallen for a scam, you’re clearly not alone, so don’t be embarrassed. Report it to the Canadian Anti- Fraud Centre at 1-888-495-8501 or go online to Fraud Reporting System (FRS).

Here’s a look at common online scams—and ways to avoid them.

Deceptive marketing of counterfeit goods

Fraudsters have been producing websites that look a lot like those of legitimate retailers such as Canada Goose, Ugg Boots, Lululemon, Arcteryx, Michael Kors, Coach and many more.

Consumers need to thoroughly research an online store or website before making a purchase. Online manufacturers generally use their own company email account. A web-based email like Gmail, Hotmail or Yahoo for a store’s contact details is a red flag.

So is no contact information whatsoever or a lack of an “About Us” section on a website.

Grammar matters too; counterfeit sites often have spelling mistakes and grammatical errors.

Romance scams

In 2014, Canadians lost more than $13.7 million to this scam.

Fraudsters use fake photos on dating sites and social media to lure potential victims. They develop a relationship over time to build trust and will offer displays of affection. Eventually, they convince the victim to send money for various reasons, or the scammer will want to meet in person but requires money for travel expenses. Other times the fraudster will present an emergency situation, like a sick family member.

Never send money for any reason in these situations. Be wary when someone claims to live nearby but is working overseas; this is a setup for the fraudster to provide several reasons to need money. If you receive a “pay cheque” or another form of payment from someone you’ve met online and they ask you to cash it and send them a portion of the funds, don’t. It’s a counterfeit cheque.

Loan scams

Ads for loans might appear in online classifieds or websites. When people respond to it, they’re asked to send an advance fee to receive the loan—which doesn’t exist.

Beware of companies offering a guarantee on a loan even if you have bad credit or no credit. And get this: it is illegal for a company to request an upfront fee prior to obtaining your loan.

Terrorism

The Canadian Anti-Fraud Centre (CAFC) is receiving reports of an email extortion campaign with links to terrorism. Emails use death threats to scare and scam people.

Commonly, these e-mails scam campaigns will claim that “you have been betrayed by someone” and that they have been hired to “kill you”. The e-mails go on to say that fees are required to be paid to “spare your life”.

The CAFC is advising the public to ignore these emails.

Ransomware

Since 2012, the CAFC has been receiving complaints from Canadians who have received pop-up messages on their computer stating, “This IP address was used to visit websites containing pornography, child pornography, zoophile and child abuse. Your computer also contains video files with Pornographic content, elements of violence and child pornography! Spam-messages with terrorist motives were also sent from your computer.”

The messages appear as if they’re from the Canadian Security Intelligence Service (CSIS) or the Royal Canadian Mounted Police and tell the consumer they need to pay $100 to $250 via Bitcoin, Ukash or PaySafe Card to unlock their computer.

Ignore pop-up messages or a banner with a ransom request.

CryptoLocker

The CAFC has received complaints about a new variation of Ransomware using CryptoLocker malware sent through email attachments.

Once opened, CryptoLocker installs itself to the home or business computer and encrypts files. Then a pop-up appears claiming the files are blocked and that the data will be lost unless the private key is obtained from the scammers. A payment of $300 is demanded to be paid by Bitcoin, UKash, Green Dot or other digital payment systems.

The user is given approximately 72 hours before the private key is destroyed and the files are lost forever.

Never send money to “unlock” a computer. Never click on a pop-up that claims your computer has a virus – if you cannot access anything on the computer beyond the pop-up screen your computer is infected.

Avoid opening email and email attachments from unknown sources, especially .zip files. Be vigilant against clicking on links within emails.

Bomb threat

An email is being sent out by a supposed assassin who claims they have planted a bomb. The sender demands a large sum of money in return for not carrying out the mission.

Ignore it and delete it.

Binary options

Websites are designed to attract users to trade binary options. Initially, a virtual gain is seen, but there is no way to access the profits because they are non-existent.

Investors that buy into a binary option run the risk of having their identity stolen, accumulating losses for unauthorized withdrawals on their credit cards, and incurring high-interest payments on an investment that doesn’t exist.

No business is registered or authorized to sell or market binary options in Canada.

Rentals

Scammers portray themselves as landlords and create fraudulent classified ads, often online, for rentals available in a particular location. Ads are usually posted with a below average asking price to ensure a “quick sale.” Scammers give interested consumers a rental questionnaire, which asks for personal information including banking details, contact information, occupation, income, and more.

They say showings of the suite aren’t possible but that a full refund can be given if the rental doesn’t meet the applicant’s satisfaction.

Once an offer is “accepted,” consumers must send first and last months’ rent (either by a money service business, email money transfer or bank wire) in exchange for the keys. The keys are promised to be express mailed to the tenant’s current address. No keys are ever sent, nor is a rental available by the scammer.

Be sure to schedule a viewing and do searches on rental addresses to ensure it’s not a duplicate post.

Phishing

You might get an email purportedly from the Canada Revenue Agency asking to verify your personal tax or financial information or offering a direct deposit on your recent tax return. In fact, the CRA does not use email to request information from taxpayers.

If you receive a text or an email directing you to a website, avoid clicking on the URL. Rather, type in the web address manually.

Clicking on an URL sometimes takes you to a fraudulent website, so examine the URL closely. It might be completely different from the name of the website you’re supposedly being directly to.

And look at the address: secure sites have “https” at the beginning, not “http” to encrypt payment data.

If you see an open lock against a red background in the address bar, beware; the site isn’t secure. You should see a green, closed lock.

Examine red Trust seals too; when you click on those that claim to be offering anti-virus protection, they should take you to a reputable site indicating the seals’ validity.

Never provide banking or financial information via email.

Charity scams

Charity scams can take on a few forms. There are false charities: You may receive email thanking you for a donation you never made and asking you for follow-up information.

Then there’s the “inflated charitable donation” scam. Here, people are presented with the ability to contribute a certain amount yet receive a charitable receipt for a much higher amount.

Be sure to contact charities directly yourself before you make a donation.

Investigate a charity’s legitimacy by searching Canada Revenue Agency’s Charities Listing. The CRA requires registration and provides legitimate charities with a number. Consider it a red flag if a charity isn’t registered.

Holiday scams

Beware of festive greetings from someone you’ve never heard of. Do not double-click on links or open attachments. Doing so could unleash malicious spyware or viruses. In some cases, nothing bad happens until you download software to “run your e-card”.

Same goes for email or text messages supposedly from major retailers or courier companies that contain tracking information for packages you never ordered.

The Better Business Bureau has this advice: “When in doubt, delete.”