How to Recognize the Signs of Fraud

Fraud costs Canadians billions of dollars each year. Every Canadian is at risk of being victimized, regardless of their age, education or income. Criminals who commit fraud are well-organized. They use sophisticated techniques, and the latest technology.

Fraud can come in many forms.

Telemarketing fraud happens when criminals reach directly into our homes via the telephone. They try to interest us in a product or a contest that doesn’t exist, or they try to make us believe they represent our bank or other financial institution.

Identity theft is the fastest growing type of fraud. If criminals can gain access to personal information, such as bank account numbers, credit card numbers and social insurance numbers, they use this information to apply for credit or make purchases.

Here are some ways to recognize the signs of fraud:

• The caller is more excited than you are.
• The caller demands an immediate answer but refuses to send you anything in writing.
• You must pay a fee or buy a product before you can collect your prize or obtain credit.
• The price for a product is much less than the price for the same product on the open market.
• You are offered a large payment or reward in exchange for allowing the use of your bank account – often to deposit cheques or transfer money.
• You receive an unexpectedly large cheque.
• You begin receiving mail from creditors that you have no credit relationship with.
• Your credit card statements stop arriving in the mail.
• Creditors or collection agencies start calling to demand payment on debts you have not incurred.

If you suspect someone is trying to commit fraud, walk away from the deal. You may even want to contact the police to let them know what you suspect. If you’ve been the victim of fraud, you should contact the police immediately. You should also review your consumer report, to make sure any fraudulent activity does not tarnish your credit record.

Incidents of fraud should also be reported to PhoneBusters, which is a national anti-fraud call centre. You can reach PhoneBusters by calling 1-800-495-8501, or by visiting their web site at http://www.phonebusters.com