The Canadian Edition

THE LITTLE BLACK BOOK OF SCAMS

Your guide to protection against fraud
First published by the Competition Bureau Canada 2012
Reproduced with permission from the Australian Competition and Consumer Commission

Illustrations by Pat Campbell

Photograph of Melanie Aitken by Couvrette/Ottawa

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This publication is also available online at www.competitionbureau.gc.ca. THE LITTLE BLACK BOOK OF SCAMS
Permission to reproduce

Except as otherwise specifically noted, the information in this publication may be reproduced, in part or in
Your guide to protection against fraud
whole and by any means, without charge or further permission from the Competition Bureau provided due
diligence is exercised in ensuring the accuracy of the information reproduced; that the Competition Bureau
is identified as the source institution; and that the reproduction is not represented as an official version
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Cat. No. Iu54-42/2012E-PDF

ISBN 978-1-100-20024-8
60987
2012-03-01
Aussi offert en français sous le titre Le Petit Livre noir de la fraude.
Foreword
Minister of Industry
Fraud is a crime that affects individuals, The Canadian edition of The Little Black
businesses and the economy as a whole. Book of Scams is a helpful resource full of
Criminals separate Canadians from millions information on how to avoid being caught up
of dollars of their money every year through in a scam and on how to report fraud to the
false or misleading advertising, lottery appropriate authorities.
CONTENTS
scams, pyramid schemes and countless other
Introduction 1
illegal techniques. I encourage you to take a moment to read
this booklet and share what you learn with Lotteries, sweepstakes and contests 2
The Government of Canada, through the your family and friends—as we all work
Competition Bureau and other agencies, together to put a stop to fraud in Canada. Pyramid schemes 4
vigorously enforces Canada’s laws in its fight
against fraud. You can help in that effort. Christian Paradis Money transfer requests 6
Minister of Industry
Internet scams 8

Commissioner of Competition Mobile phone scams 10

Under the provisions of the Competition With helpful tips, questions to ask yourself,
Health and medical scams 12
Act and other laws, the Competition Bureau and contact information for a number of
pursues businesses and individuals who agencies that work to counter fraud in Emergency scams 14
carry out deceptive marketing practices, Canada, this booklet will arm you in the fight
such as false or misleading advertising, against fraud and help you be an active but Dating and romance scams 16
Internet scams, deceptive telemarketing, or safe consumer.
deceptive contests. Charity scams 18
The Little Black Book of Scams was originally
Job and employment scams 20
In addition, the Bureau helps ensure developed by the Australian Competition and
consumers have the information they need to Consumer Commission. I would like to thank Small business scams 22
make informed purchasing decisions. them for granting us permission to reproduce
and adapt the booklet for Canadians. Service scams 24
We have developed the Canadian edition of
The Little Black Book of Scams to increase Melanie Aitken Handy hints to protect yourself 26
your awareness of the many types of fraud Commissioner of Competition
Scams and you: What to do if you get scammed! 28
that target Canadians and to share some
easy steps you can take to protect yourself. Getting help and reporting a scam 29
Myth Busters
Busting these common myths will minimize your chances of being scammed.
• All companies, businesses and organizations • There are short cuts to wealth that only a few
are legitimate because they are licensed and people know: This is not always true. Ask
monitored by the government: This is not yourself the question: if someone knew a secret
always true. While there are rules about setting to instant wealth, why would they be telling
up and running a business or a company in their secret to others?
Canada, scammers can easily pretend to have
approval when they don’t. Even businesses • Scams involve large amounts of money: This is
that are licensed could still try to scam you by not always true. Sometimes scammers target a
acting dishonestly. large number of people and try to get a small
amount of money from each person.
• All Internet websites are legitimate: This is not
always true. Websites are quite easy and cheap to • Scams are always about money: This is not always
set up. The scammers can easily copy a genuine true. Some scams are aimed at stealing personal

Introduction
website and trick you into believing it is legitimate. information from you.

Golden rules
Remember these golden rules to help you beat the scammers. Every year, Canadians lose millions of dollars to the activities
of scammers who bombard us with online, mail, door-to-door
• Always get independent advice if an offer • Do not rely on glowing testimonials: find solid
involves money, personal information, time or evidence of a company’s success. and telephone scams.
commitment.
We are pleased to bring you the first Canadian edition of The Little Black Book of Scams. We
• Log directly on to a website that you are
• There are no guaranteed get-rich-quick interested in rather than clicking on links hope this book will increase your awareness of the vast array of scams that target Canadians
schemes—sometimes the only people who make provided in an email. and share with you some easy steps you can take to protect yourself.
money are the scammers.
• N ever send money, or give credit card or Scammers do not discriminate combat this kind of fraud is to take measures
• Do not agree to offers or deals right away. If online account details to anyone you do not Scammers target people of all backgrounds, to prevent yourself from being caught in the
you think you have spotted a great opportunity, know and trust. ages and income levels. Fake lotteries, first place.
insist on time to get independent advice before Internet frauds, get-rich-quick schemes and
making a decision. • If you spot a scam or have been scammed, get miracle health cures are some of the favoured Protect yourself
help. Contact the Canadian Anti-Fraud Centre, means of separating the unwary from their If you want to stay on top of scams, inform
• Do not hand over money or personal information, the Competition Bureau or your local police for money. New varieties of these scams appear yourself on how to recognize the various
or sign anything until you have done your assistance. See page 29 for contact information.
all the time. types of scams and protect your personal
homework and checked the credentials of the
information by visiting law enforcement
company that you are dealing with.
The Competition Bureau has seen the organizations’ websites, the Canadian Anti-
Scammers are imaginative and manipulative. They know how to push your buttons to produce devastating effects scams can have on people Fraud Centre (www.antifraudcentre.ca) or
the response they want. and their families. One of the best ways to other reputable organizations.
2

Lotteries, sweepstakes and

contests
Many Canadians are lured by the excitement of a surprise
win and find themselves sending huge amounts of money
to claim fake prizes.
What to look for
You cannot win money or a prize in a lottery A fake prize scam will tell you that you have
unless you have entered it yourself, or
someone else has entered it on your behalf.
won a prize or a contest. You may receive a
phone call, an email, a text message or see a
! PROTECT YOURSELF

You cannot be chosen as a random winner if pop-up screen on your computer. There are
Remember Legitimate lotteries do not require you to pay a fee or tax to collect winnings.
you don’t have an entry. often costs involved with claiming your prize,
and even if you do receive a prize, it may not
Many lottery scams try to trick you into be what was promised to you. Caution Never send money to anybody you don’t know and trust.
providing your banking and personal details
to claim your prize. You should not have to The scammers make their money by making Think Don’t provide personal banking details to anyone that you do not know and trust.
pay any fee or tax to claim a legitimate prize. you pay fees or taxes, call their premium
rate phone numbers or send premium text
Don’t be fooled by claims that the offer is messages to claim your prize. These premium Examine all of the terms and conditions of any offer very carefully—claims of free or very
legal or has government approval—many rate calls can be very expensive, and the Investigate cheap offers often have hidden costs. Calls to premium rate phone numbers or premium text
scammers will tell you this. Instead of scammers will try to keep you on the line messages can be very expensive.
receiving a grand prize or fortune, you will for a long time or ask you to call a different
lose every cent that you send to a scammer. premium rate number. Ask Did I enter this contest? You cannot win money or a prize in a contest unless you have
And if you have provided other personal yourself entered it yourself, or someone else has entered it on your behalf.
details, your identity could be misused too.
4

Pyramid schemes
Pyramid schemes promise a large financial return for a
relatively small cost. Pyramid schemes are illegal and very
risky—and can cost you a lot of money.
What to look for
In a typical pyramid scheme, unsuspecting Ponzi schemes are fraudulent investment
investors are encouraged to pay large operations that work in a similar way to
membership fees to participate in money- pyramid schemes. The Ponzi scheme usually
making ventures. The only way for you to
ever recover any money is to convince other
entices new and well-to-do investors by
offering higher returns than other investments ! PROTECT YOURSELF

people to join and to part with their money in the form of short-term returns that are
Pyramid and Ponzi schemes may be sent to you from family members and people you trust—
as well. People are often persuaded to join either abnormally high or unusually consistent. Remember
they might not know that they could be illegal or that they are involved in a scam.
by family members or friends. But there The schemer usually interacts with all the
is no guarantee that you will recoup your investors directly, often persuading most of the
initial investment. existing participants to reinvest their money, Caution Never commit to anything at high-pressure meetings or seminars.
thereby minimizing the need to bring in new
Although pyramid schemes are often cleverly participants as a pyramid scheme will do. Don’t make any decisions without doing your homework—research the offer being made and
disguised, they make money by recruiting Think
seek independent advice before making a decision.
people rather than by selling a legitimate Be cautious, but do not be discouraged from
product or providing a service. Pyramid carefully researching business opportunities
schemes inevitably collapse and you will based on commissions. There are many Investigate Do some research on all business opportunities that interest you.
lose your money. In Canada, it is a crime legitimate multi-level marketing opportunities
to promote a pyramid scheme or even to where you can legally earn an income from Ask
If I am not selling a genuine product or service, is participation in this activity legal?
participate in one. selling genuine products or services. yourself
6

offer from a potential buyer and accept it. You

receive payment by cheque or money order,
but the amount you receive is more than the
agreed price. The buyer may tell you that the
overpayment was simply a mistake or they
may invent an excuse, such as extra money
to cover delivery charges. If you are asked to
Money transfer requests refund the excess amount by money transfer,
be suspicious. The scammer is hoping that
Money transfer scams are on the rise. Be very careful when you will transfer the refund before you
discover that their cheque or money order
someone offers you money to help transfer their funds. Once was counterfeit. You will lose the transferred
you send money to someone, it can be very difficult, if not money as well as the item if you have already
impossible, to get it back. sent it.

What to look for

The Nigerian scam (also called the 419 fraud) Then there is the scam email that claims to be ! PROTECT YOURSELF

has been on the rise since the early-to-mid from a lawyer or bank representative advising
1990s in Canada. Although many of these that a long-lost relative of yours has died If you have been approached by someone asking you to transfer money for them, it is
Remember
sorts of scams originated in Nigeria, similar and left you a huge inheritance. Scammers probably a scam.
scams have been started all over the world can tell such genuine sounding stories that
(particularly in other parts of West Africa and you could be tricked into providing personal Never send money, or give credit card or online account details to anyone you do not know
Caution
in Asia). These scams are increasingly referred documents and bank account details so that and trust.
to as “advance fee fraud”. you can confirm their identity and claim your
inheritance. The “inheritance” is likely to be
Don’t accept a cheque or money order for payment for goods that is more than what you
In the classic Nigerian scam, you receive an non-existent and, as well as losing any money
Think agreed upon. Send it back and ask the buyer to send you payment for the agreed amount
email or letter from a scammer asking your you might have paid to the scammer in fees
before you deliver the goods or services.
help to transfer a large amount of money and taxes, you could also risk having your
overseas. You are then offered a share of the identity stolen.
money if you agree to give them your bank Examine the information on the Canadian Anti-Fraud Centre website for information on how
Investigate
account details to help with the transfer. They If you or your business is selling products to protect yourself against money transfer scams.
will then ask you to pay all kinds of taxes and or services online or through newspaper
fees before you can receive your “reward”. classifieds, you may be targeted by an Ask
You will never be sent any of the money, and overpayment scam. In response to your Is it really safe to transfer money for someone I do not know?
yourself
will lose the fees you paid. advertisement, you might receive a generous
8

Scammers can easily copy the logo or even Online auctions and Internet shopping can
the entire website of a genuine organization. be a lot of fun and can also help you find
So don’t just assume an email you receive is good deals. Unfortunately, they also
legitimate. If the email is asking you to visit a attract scammers.
website to “update”, “validate” or “confirm”
your account information, be sceptical. Scammers will often try to get you to deal
outside of online auction sites. They may
Delete phishing emails. They can carry claim the winner of an auction that you were
viruses that can infect your computer. Do not bidding on has pulled out and offer the item
open any attachments or follow any links in to you. Once you have paid, you will never
phishing emails. hear from them again and the auction site will
not be able to help you.

Internet scams ! PROTECT YOURSELF

If you choose to shop online or participate in online auctions, make sure you know about
A lot of Internet scams take place without the victim refund policies and dispute-handling processes, and be careful that you are not overcharged.
even noticing. You can greatly reduce the chances of Also, you may want to use an escrow service, such as PayPal. This service will hold your
being scammed on the Internet if you follow some simple Remember payment and only release it to the seller once you have confirmed that you received what
you paid for. There is usually a small fee for this service. A legitimate bank or financial
precautions. institution will never ask you to click on a link in an email or send your account details
What to look for through an email or website.
Scammers can use the Internet to promote computer so that they can gain access to files
fraud through unsolicited or junk emails, stored on your computer and other personal Never buy from bidders with poor ratings on auction sites, and do your best to ensure that
known as spam. Even if they only get a details and passwords. Caution you are only making purchases from genuine shopping sites. Never provide your personal,
handful of replies from the millions of emails credit card or account information unless you are certain the site is genuine.
they send out, it is still worth their while. Be Scammers use a wide range of tricks to get
wary of replying, even just to “unsubscribe”, their software onto your computer. They may
Don’t reply to spam emails, even to unsubscribe, and do not click on any links or call any
because that will give a scammer confirmation trick you into clicking on a link or pop-up
Think telephone number listed in a spam email. Make sure you have current protective software or
that they have reached a real email address. message in a spam email, or by getting you
get advice from a computer specialist.
to visit a fake website set up solely to infect
Any email you receive that comes from a people’s computers.
sender you do not know, is not specifically If an email or pop-up offers you a product or service that genuinely interests you and it
addressed to you, and promises you some Phishing scams are all about tricking you into Investigate seems reasonable, be sure that you understand all the terms and conditions and costs
benefit is likely to be spam. handing over your personal and banking details involved before making a purchase or providing your details.
to scammers. The emails you receive might
Malicious software—also referred to as look and sound legitimate but in reality genuine By opening this suspect email, will I risk the security of my computer? Are the contact details
malware, spyware, key loggers, trojan horses, organizations like a bank or a government Ask
provided in the email correct? Telephone your bank or financial institution to ask whether the
or trojans—poses online security threats. authority will never expect you to send your yourself email you received is genuine.
Scammers try to install this software on your personal information by an email or online.
10

An SMS contest or SMS trivia scam

usually arrives as a text message or in an
advertisement and encourages you to take
part in a trivia contest for a great prize. All
you need to do is answer a certain number
of questions correctly. The scammers make
money by charging extremely high rates
Mobile phone scams for the messages you send and any further
messages they send to you. With trivia
scams, the first set of questions will be
Mobile phone scams can be difficult to recognize. very easy. This is meant to encourage you
Be wary of somebody who talks as if they know you or of to keep playing. However, the last one or
redialling a missed call from an unknown number—there may two questions that you need to answer to
claim your “prize” could be very difficult or
be hidden charges. impossible to answer correctly.
What to look for
Ringtone scams might attract you with an
offer of a free or low-cost ringtone. What
Missed call scams start by scammers calling
your phone and hanging up so quickly that ! PROTECT YOURSELF

you may not realize is that by accepting you can’t answer the call in time. Your phone
the offer, you may actually be subscribing registers a missed call and you probably won’t Remember Text “STOP” to end unwanted text messages or to end unwanted subscriptions.
to a service that will keep sending you recognize the number. You may be tempted
ringtones—and charging you a premium to call the number to find out who called you.
rate for them. There are many legitimate If it is a scam, you will be paying premium Never reply to text messages offering you free ringtones or missed calls from numbers that
Caution
companies selling ringtones, but there are rates for the call without knowing. you do not recognize.
also scammers who will try to hide the true
cost of taking up the offer. Text message scams work in a similar way, Don’t call or text phone numbers beginning with 1-900 unless you are aware of the cost
but through a Short Message Service (SMS). Think
involved, and carefully read any terms and conditions when texting short codes.
Scammers either don’t tell you that your Scammers send you a text message from
request for the first ringtone is actually a a number you may not recognize, but it
subscription to a ringtone service, or it may sounds like it is from a friend—for instance: Read all the terms and conditions of an offer very carefully. Services offering free or very
Investigate
be obscured in fine print related to the offer. “Hi, it’s John. I’m back! When are you free to cheap products often have hidden costs.
They also make it difficult for you to stop catch up?” If you reply out of curiosity, you
the service. You have to actively “opt out” might be charged at premium rate for SMS Ask
Do I know how to stop any subscription service I want to sign up to?
of the service to stop the ringtones and the messages (sometimes as much as $4 for each yourself
associated charges. message sent and/or received).
12

Health and medical scams

Medical scams prey on human suffering. They offer
solutions where none exist or promise to simplify complex
health treatments.
What to look for
Miracle cure scams offer a range of products
and services that can appear to be legitimate
10 days” or “lose weight while you sleep”,
and often require large advance payments
! PROTECT YOURSELF

alternative medicines, usually promising quick or that you enter into a long-term contract
There are no magic pills, miracle cures or safe options for serious medical conditions or rapid
and effective remedies for serious medical to participate in the program. Remember
weight loss.
conditions. The treatments claim to be
effective against a very wide range of ailments Fake online pharmacies use the Internet and
and are often promoted using testimonials spam emails to offer drugs and medicine at Caution Never commit to anything under pressure.
from people who have used the product or very cheap prices and/or without the need
service and have been “cured”. for a prescription from a doctor. If you use Don’t trust an unsubstantiated claim about medicines, supplements or other treatments.
such a service and you actually do receive the Think
Consult your healthcare professional.
Weight loss scams promise dramatic products in response to your order, there is no
weight loss with little or no effort. This guarantee that they are the real thing.
type of scam may involve an unusual or Check for published medical and research papers to verify the accuracy of the claims made
Investigate
restrictive diet, revolutionary exercise or There are legitimate online pharmacies. These by the promoters.
“fat-busting” devices, or breakthrough businesses will have their full contact details
products such as pills, patches or creams. listed on their website and will also require a Ask
If this really is a miracle cure, wouldn’t my healthcare professional have told me about it?
The products are promoted with the use valid prescription before they send out any yourself
of false claims such as “lose 10 kilos in medicine that requires one.
14

Emergency scams
Emergency scams target grandparents and play upon their
emotions to rob them of their money. ! PROTECT YOURSELF

What to look for

Scammers are counting on the fact that you will want to act quickly to help your loved ones
In the typical scenario of an emergency scam, Callers say that they don’t want other family Remember
in an emergency.
a grandparent receives a phone call from members to find out what has happened.
a scammer claiming to be one of his or her You will be asked to wire some money
grandchildren. Callers go on to say that they through a money transfer company. Often, Never send money to anyone you don’t know and trust. Verify the person’s identity before
Caution
are in some kind of trouble and need money victims don’t verify the story until after the you take any steps to help.
immediately. They claim to have been in a car money has been sent.
accident, are having trouble returning from a Think Don’t give out any personal information to the caller.
foreign country or they need bail money. In some cases, scammers pretend to be your
old neighbour or a friend of the family, but
You may get a call from two people, one for the most part, the emergency scam is Ask the person questions that only your loved one would be able to answer. Call the child’s
Investigate
pretending to be your grandchild and the directed at grandparents. parents or friends to verify the story.
other pretending to be either a police officer
or a lawyer. Your “grandchild” asks you Ask
Does the caller’s story make sense?
questions during the call, getting you to yourself
volunteer personal information.
16

Dating and romance scams

Despite the many legitimate dating websites operating in
Canada, there are many dating and romance scams as well.
Dating and romance scams try to lower your defences by
appealing to your romantic and compassionate side.
What to look for
Some dating and romance scams work by or Eastern Europe). After they have sent you a
setting up a dating website where you pay
for each email or message you send and
few messages, and maybe even a glamorous
photo, you will be asked (directly or more
! PROTECT YOURSELF

receive. The scammer will try to hook you in subtly) to send them money to help their
Check website addresses carefully. Scammers often set up fake websites with very similar
by continuing to send you vague-sounding situation. Some scammers even arrange to Remember
addresses to legitimate dating websites.
emails filled with talk of love or desire. The meet with you, in the hope that you give them
scammer might also send emails filled with presents or money—and then they disappear.
details of their home country or town that Never send money, or give credit card or online account details to anyone you do not know
Caution
do not refer to you much at all. These are In other cases, scammers will try to build a and trust.
attempts to keep you writing back and friendship with you, perhaps even sending
paying money for use of the scammer’s you flowers or other small gifts. After building Think Don’t give out any personal information in an email or when you are chatting online.
dating website. a relationship, the scammer will tell you
about a large amount of money they need to
Even on a legitimate dating site, you might transfer out of their country, or that they want Investigate Make sure you only use legitimate and reputable dating websites.
be approached by a scammer—perhaps to share with you. They will then ask for your
someone who claims to have a very sick family banking details or money for an administrative Ask Would someone I have never met really declare their love for me after only a few letters or
member or who is in the depths of despair fee or tax that they claim needs to be paid to yourself emails?
(often these scammers claim to be from Russia free up the money.
18

Charity scams
Charity scams take advantage of people’s generosity and
kindness by asking for donations to a fake charity or by
impersonating a real charity.
What to look for
Charity scams involve scammers collecting Not only do these scams cost people money;
money by pretending to be a real charity.
The scammers can approach you in many
they also divert much needed donations
away from legitimate charities and causes. All
! PROTECT YOURSELF

different ways—on the street, at your home, registered charities in Canada are overseen
If you have any doubts at all about the person asking for money, do not give them any cash,
over the phone, or on the Internet. Emails and by the Canada Revenue Agency and listed in Remember
credit card or bank account details.
collection boxes may even be marked with its database. You can also contact your local
the logos of genuine charities. Better Business Bureau to see if they have
any information about the organizations that Never give out your personal, credit card or online account details over the phone unless you
Caution
Often, the scammer will exploit a recent interest you. If the charity is genuine and you made the call and the phone number came from a trusted source.
natural disaster or famine that has been in the want to make a donation, get the charity’s
news. Other scammers play on your emotions contact details from the phone book or a Think If in doubt, approach an aid organization directly to make a donation or offer support.
by pretending to be from charities that help trusted website.
children who are ill.
Search the Canada Revenue Agency database to check that the charity that has approached
If you do not want to donate any money, or Investigate
you is genuine.
Scammers can try to pressure you to give you are happy with how much you may have
a donation and refuse to provide details donated to charities already, simply ignore the
about the charity, such as their address or email or letter, hang up the phone, or say no Ask
How and to whom would I like to make a contribution?
their contact details. In other cases, they may to the person at your door. You do not have yourself
simply provide false information. to give any money at all.
20

Job and employment scams

Job and employment scams target people looking for a job.
They often promise a lot of income—sometimes they even
guarantee it—for little or no effort.
What to look for
! PROTECT YOURSELF

Work-from-home scams are often promoted counterfeit cheque along with instructions for
through spam emails or advertisements you to cash the cheque and transfer a portion Remember There are no shortcuts to wealth—the only people that make money are the scammers.
online or in newspaper ads. Most of these of the sum over a money transfer service.
advertisements are not real job offers. Never send your bank account or credit card details to anybody you do not know and trust.
Many of them are fronts for illegal money- A guaranteed employment or income scam Caution If you cash the cheque and it turns out to be counterfeit, you could be held accountable for
laundering activity or pyramid schemes. claims to guarantee you either a job or a the entire monetary loss by your bank.
certain level of income. The scammers usually
You might get an email offering a job where contact you by spam email and the offers Don’t make any decisions without carefully researching the offer. Seek independent advice
you use your bank account to receive and pass often involve the payment of an up-front Think
before making a decision.
on payments for a foreign company. Or you fee for a “business plan”, certain start-up
might be offered a job as a “secret shopper” materials or software.
hired to test the services of a cheque- Beware of products or schemes claiming to guarantee income and job offers requiring
cashing or a money transfer company. Some There is a range of scams promoted as Investigate payment of an upfront fee or sending money through a money transfer service. Make sure
“job offers” promise that you will receive a business opportunities. You may be required any franchise business opportunity is legitimate.
percentage commission for each payment you to make an upfront payment (for something
pass on. Sometimes, scammers are just after that does not work or is not what you Ask
Did I get all the details in writing before paying or signing anything?
your bank account details so they can access expected) or to recruit other people to the yourself
your account. They might also send you a scheme (refer to pyramid schemes on page 4).
22

Another common approach used by An office supply scam involves you receiving
scammers is to call a firm asking to and being charged for goods that you
confirm details of an advertisement that did not order. These scams often involve
they claim has already been booked. The goods or services that you regularly order—
scammer might quote a genuine entry for example, paper, printing supplies,
or advertisement your business has had maintenance supplies or advertising.
in a different publication or directory to
convince you that you really did use the You might receive a phone call from someone
scammer’s product. falsely claiming to be your “regular supplier”,
telling you that the offer is a “special” or
Be wary of order forms offering advertising “available for a limited time”, or pretending

Small business scams opportunities in business directories. These

order forms may look like they originate
to only confirm your address or existing order.
If you agree to buy any of the supplies offered
from a well-known supplier of directory to you, they will often be overpriced and of
Scams that target small businesses can come in a variety of advertising, when they don’t. bad quality.
forms—from bills for advertising or directory listings that
were never ordered to dubious office supply offers. ! PROTECT YOURSELF

What to look for

Small business operators and individuals • Check that the renewal notice comes from Make sure that the people processing the invoices or answering telephone calls are aware
with their own Internet sites continue to be the company with which you originally Remember of these scams. They will most often be the point of contact for the scammers. Always check
confused and caught by unsolicited letters registered your domain name. that goods or services were both ordered and delivered before paying an invoice.
warning them that their Internet domain name
is due to expire and must be renewed, or • Check your records for the actual expiry Never give out or update any information about your business unless you know what the
Caution
offering them a new domain name similar to date for your existing domain name. information will be used for.
their current one.
A directory listing or unauthorized advertising Don’t agree to a business proposal over the phone—always ask for an offer in writing. Limit
If you have registered a domain name, be sure scam tries to bill a business for a listing or Think the number of people in your business that have access to funds and have the authority to
to carefully check any domain name renewal advertisement in a magazine, journal or business approve purchases.
notices or invoices that you receive. While the directory, or for an online directory listing.
notice could be genuine, it could also be from
another company trying to sign you up, or it The scam might come as a proposal for a Effective management procedures can go a long way towards preventing these scams
could be from a scammer. subscription disguised as an update of an Investigate from succeeding. Having clearly defined procedures for the verification, payment and
existing listing in a business directory. You management of accounts and invoices is an effective defence against these types of scams.
• Check that the renewal notice matches your might also be led to believe that you are
current domain name exactly. Look out for responding to an offer for a free listing when Ask If a caller claims that I have ordered or authorized something and I do not think it sounds
small differences—for example, “.com” instead in fact it is an order for a listing requiring yourself right, shouldn’t I ask for proof?
of “.ca” or missing letters in the URL address. later payment.
24

Service scams You might receive an automated call,

prompting you to “press 1” and provide
personal information, such as your date of
Many Canadians are being targeted by individuals claiming birth and credit card number. You will also be
asked to pay a fee up front for the service.
to offer reduced rates or deals for various services.
The scammers will use this information to
What to look for make purchases on your credit card or to
These scams typically involve individuals that Downloading software from an unknown access cash advances.
make offers for telecommunications, Internet, source or allowing someone to remotely
finance, medical and energy services. This
category of scams may also include offers
access your computer is risky. Scammers
could use malicious software to capture your ! PROTECT YOURSELF

such as extended warranties, insurance, and personal information such as user names and
door-to-door sales. passwords, bank account information, identity Remember Only your service provider can offer you a better rate or price for their services.
information, etc.
The two most reported service scams Caution Be wary of unsolicited calls from people offering a great deal “for a limited time only”.
targeting Canadians are the antivirus Everyone likes to get a deal and scammers
software scam and credit card interest rate know this. The people behind credit Don’t give out your credit card number over the phone unless you made the call and the
reduction scams. card interest rate reduction scams often Think
number came from a trusted source.
impersonate financial institutions and claim to
The scammers involved in the antivirus negotiate with credit card companies to lower
software scam promise to repair your your interest rates. They guarantee they can If a caller claims to represent your bank, telephone your bank to ask whether the offer you
Investigate
computer over the Internet. This can involve save you thousands of dollars in interest. The received is genuine.
the installation of software or permission caller will tell you that the lower interest rates
to have remote access to your computer. are for a limited time only and that you need Ask
By offering up this information, am I putting myself at risk?
Payment for the software or repair is typically to act now. yourself
made by credit card.
26

Handy hints to
protect yourself
Protect your identity
• Only give out your personal details and information • Contact the Competition Bureau, provincial and • Never call a telephone number or trust other contact • When using public computers, clear the history and
where it is absolutely necessary and when you trust the territorial consumer affairs offices or the Better Business details that you see in a spam email. cache of the computer when you finish your session.
person you are speaking to or dealing with. Bureau of your province or territory if you are unsure
about a seller that comes to your door. See pages 29 Internet business • Be careful when using software on your computer that
• Destroy personal information: don’t just throw it out. and 30 for contact information. • Install software that protects your computer from auto-completes online forms. This can give Internet
You should cut up or shred old bills, statements or viruses and unwanted programs and make sure it is kept scammers easy access to your personal and credit card
cards—for example, credit cards and ATM cards. Telephone business current. If you are unsure, seek the help of a computer details.
• If you receive a phone call from someone you do professional.
• Treat your personal details like you would treat money: not know, always ask for the name of the person you • Choose passwords that would be difficult for anyone
don’t leave them lying around for others to take. are speaking to and who they represent. Verify this • If you want to access a website, use a bookmarked link else to guess—for example, passwords that include
information by calling the company yourself. to the website or type the address of the website into letters and numbers. You should also regularly change
Money matters the browser yourself. Never follow a link in an email. passwords.
• Never send money to anyone that you don’t know and • Do not give out your personal, credit card or online
trust. account details over the phone unless you made the call • Check website addresses carefully. Scammers often • When buying anything online, print out copies of all
and the phone number came from a trusted source. set up fake websites with addresses very similar to transactions and only pay via a secure site. If using an
• Do not send any money or pay any fee to claim a prize legitimate websites. Internet auction site, note the ID numbers involved and
or lottery winnings. • It is best not to respond to text messages or missed read all the security advice on the site first.
calls that come from numbers you do not recognize. • Beware of websites offering “free” downloads (such as
• “Jobs” asking you to simply use your own bank account Be especially wary of phone numbers beginning with music, adult content, games and movies). Downloading
to transfer money for somebody could be a front for 1-900. These may be charged at a higher rate than other these products may install harmful programs onto your
money-laundering activity. Money laundering is a serious numbers and can be very expensive. computer without you knowing.
criminal offence.
Email offers • Avoid clicking on pop-up ads—this could lead to
• Avoid transferring or wiring any refunds or • Never reply to a spam email, even to unsubscribe— harmful programs being installed on your computer.
overpayments back to anyone you do not know. often, this just serves to “verify” your address to
scammers. The best course of action is to delete any • Never enter your personal, credit card or online account
The face-to-face approach suspicious emails without opening them. information on a website that you are not sure is
• If someone comes to your door, ask to see some genuine.
identification. You do not have to let them in, and they • Turn off the “viewing pane” as just viewing the email
must leave if you ask them to. may send a verification notice to the sender that yours is • Never send your personal, credit card or online banking
a valid email address. details through an email.
• Before you decide to pay any money, if you are
interested in what a door-to-door salesperson has to • Legitimate banks and financial institutions will never ask • Avoid using public computers (at libraries or Internet
offer, take the time to find out about their business and you for your account details in an email or ask you to cafes) to do your Internet banking or online shopping.
their offer. click on a link in an email to access your account.
28

Scams and you: If you have been tricked by

a door-to-door seller
If you do not have security software (such as virus scanners
and a firewall) installed on your computer, a computer

What to do if you get scammed!

You may be protected by laws that provide you with a professional can help you choose what you need.
“cooling-off” period, during which you can cancel an
agreement or contract that you signed. Contact your Scammers may have also gained access to your online
Canadian authorities may not always be able to take action against scams, provincial or territorial consumer affairs office for advice passwords. Change these using a secure computer.
about door-to-door sales laws.
even if it seems like a scammer might have broken the law. If the scam involves your
If you have been scammed mobile phone
Reducing the damage fake and lead you to a scammer. You can find legitimate
contact details in the phone book, an account statement using your computer Call your telephone provider and let them know what has
Although it may be hard to recover any money that you
If you were using your computer when you got scammed, happened.
have lost to a scam, there are steps you can take to or on the back of your ATM card.
it is possible that a virus or other malicious software is still
reduce the damage and avoid becoming a target for a
If the scam relates to on your computer. Run a full system check using reliable
follow-up scam. The more quickly you act, the greater
your health security software.
your chance of reducing your losses.
Stop taking any pills or substances that you are not
Report a scam. By reporting the scam to authorities, they
may be able to warn other people about the scam and
sure about. See a doctor or other qualified medical
professional as soon as you can. Be sure to tell them Getting help and reporting a scam
minimize the chances of the scam spreading further. You about the treatment that the scammer sold (take along
should also warn your friends and family of any scams that any substances, including their packaging). Also tell them The best agency to contact depends on where you live and what type of
you come across. Details on how to report a scam are on if you have stopped any treatment that you were taking scam is involved.
pages 29 and 30 of this publication. before the scam.
If you think you have spotted a scam or have been Local scams
If you have been tricked into signing a If you have sent money to someone that targeted by a scam, there are a number of government Contact your local consumer affairs office
contract or buying a product or service you think may be a scammer and law enforcement agencies in Canada that you can Your local consumer affairs office is best placed to investigate
Contact your provincial or territorial consumer affairs If you sent your credit card details, follow the instructions contact for advice or to make a report. This may help scams that appear to come from within your own province
office and consider getting independent advice to in the section opposite. you and prevent others from being ripped off by scam or territory. A list of provincial and territorial consumer affairs
examine your options: there may be a cooling-off period operators. offices can be found in the Canadian Consumer Handbook
or you may be able to negotiate a refund. If you sent money through an electronic funds transfer on the Office of Consumer Affairs website.
(over the Internet), contact your financial institution Canadian Anti–Fraud Centre
If you think someone has gained access immediately. If they have not already processed the www.antifraudcentre.ca www.consumerhandbook.ca
to your online account, telephone transfer, they may be able to cancel it. 1-888-495-8501
banking account or credit card details Financial and investment scams
Call your financial institution immediately so they can If you sent a cheque, contact your financial institution The Competition Bureau’s Information Centre Contact Canadian Securities Administrators
suspend your account and limit the amount of money you immediately. If the scammer hasn’t already cashed your www.competitionbureau.gc.ca Financial scams involve sales offers or promotions about
lose. Credit card companies may also be able to perform a cheque, they may be able to cancel it. 1-800-348-5358 financial products and services such as superannuation,
“charge back” (reverse the transaction) if they believe that managed funds, financial advice, insurance, credit or
your credit card was billed fraudulently. If you sent money through a wire service (such as Western deposit accounts.
Union or Money Gram), contact the wire service immediately.
Do not use contact details that appear in emails or on If you are very quick, they may be able to stop the transfer. Investment scams involve share buying, foreign currencies
websites that you are suspicious of—they will probably be trading, offshore investments, Ponzi schemes or prime
bank investment schemes.
30

You can report financial and investment scams to the If you are the victim of fraud—you have suffered a loss
Canadian Securities Administrators (CSA) or to your local because of someone’s dishonesty or deception—you
securities regulator. should consider contacting your local police (particularly if
the amount involved is significant).
www.securities-administrators.ca
You should definitively contact the police if you have had
Reporting banking and your property stolen or have been threatened or assaulted
credit card scams by a scammer.
Contact your bank or financial institution
As well as reporting these scams to the Canadian Anti- You may also contact one of the following organizations:
Fraud Centre, you should alert your bank or financial
institution about any suspicious correspondence that you Canadian Council of Better Business Bureaus
receive about your account. They can advise you on what www.ccbbb.ca
to do next.
Canada Revenue Agency—Charities Directorate
Make sure that the telephone number you use is from the www.cra-arc.gc.ca
phone book, your account statement or the back of your 1-800-267-2384
credit or ATM card.
Your local police, credit card companies, banks, and
Reporting spam emails and SMS provincial records offices.
Many scams arrive by email and SMS. Visit
www.fightspam.gc.ca for information on Canada’s Credit bureaus can put a fraud alert on your account,
anti-spam legislation. which will alert lenders and creditors of potential fraud:

Fraudulent (or “phishing”) emails requesting personal Equifax: 1-800-465-7166

details can also be reported to the bank, financial TransUnion: 1-866-525-0262
institution or other organization concerned (be sure to use
a phone number or email address that did not appear in
the email to make your report).

Reporting fraud,
theft and other crimes
Contact the police
Many scams that may breach consumer protection
laws (those enforced by the Competition Bureau, other
government and law enforcement agencies) may also
breach the fraud provisions of the Criminal Code.