Operating a scam used to be like casting a net – con-artists mailed lots of letters or made lots of phone calls hoping to catch a few “fish”.
Those scams usually offered an unbelievable, life-altering deal and used a personal touch to convince victims the offer was legitimate. Since people weren’t used to this type of approach, many believed they really had hit the jackpot and therefore fell for the scam. While education and awareness programs were successful in helping the public detect those early scams, the sheer volume of pitches also helped raise awareness. Eventually, so many of us had received a letter from a Nigerian prince hoping to share his millions that we began recognizing those letters as scams.
Today, the internet and e-mail messaging allow scammers to cast a huge net over countless victims from a convenient distance. At the push of a button, they can reach so many people that the odds of success are stacked in their favour. As the public has grown wary, scams have grown more sophisticated. To reel in new victims, scammers have modified their “bait” by improving their pitches, hiding their true locations by “spoofing” their telephone numbers or by using post office boxes located in the victims’ countries. Today’s mass marketing frauds are well planned, fully-scripted operations that have the resources to hire professional web designers and computer hackers. They buy television commercials and magazine and newspaper ads to lend an air of legitimacy to their scams. With organized crime groups becoming more heavily involved in fraud, there’s also been an marked increase in threats and strong-arm pressure tactics used to intimidate victims into either sending money or not reporting scams. Fraudsters have improved their techniques, constructing scams so sophisticated they can fool even the most seasoned skeptic. That said, knowing what to watch for still means you’ll be less likely to fall victim.
Lottery and prize scams
When lottery scams began, prospective victims received e-mail messages telling them they’d won, even though they didn’t know the lottery and had never bought a ticket. Today’s lottery scammers go so far as to send victims counterfeit cheques in the mail to “pay administration fees, taxes or duties”. To provide a reason why they’re contacting you about a lottery you never entered, they sometimes pose as marketers for legitimate companies such as Costco or Walmart. Tactics like these lend authenticity to scams and increase the chances of fooling you. If you’ve been notified of prize winnings by phone, e-mail or regular mail, remember that legitimate lotteries definitely DO NOT:
• require up-front payment for taxes, duties or fees so you can collect your prize.
• pressure you into making a quick decision.
• discourage you from verifying information about the lottery.
• hide where they are located.
• notify winners by e-mail.
• use free e-mail accounts (Yahoo, Hotmail, G-mail, etc) to communicate with winners.
• instruct you to call mobile phone numbers or keep your winnings secret.
Romance scams
Fraud artists know that lonely people are often easy prey. Romance scams used to use newspaper and magazine ads to reach prospective victims. Today, scammers troll dating sites, chat rooms and blogs looking for targets. Some romance scammers even manage to convince their victims to travel great distances. Upon arriving, the victim is kidnapped and held for ransom. When considering companionship offers in e-mail messages, letters or on websites, be especially wary:
• Never provide personal data online to someone you don’t know.
• Guard your privacy – don’t provide your date of birth or address.
• Watch out for ads that include model-like photographs. If they aren’t blatant misrepresentations, the handsome man or gorgeous woman in the photo may in fact be a scheming, ruthless thief hoping to use your trust and kindness to separate you from your money.
• Once you share a digital photo online, it’s no longer in your control and can be used for purposes you didn’t intend.
• Search a prospective companion’s name and details using your favorite browser. You may be surprised what you find. If they’ve scammed others, chances are someone has posted a message online. If you’re really interested in someone, consider a professional background check to verify his or her identity.
• Don’t meet your online companion alone – always bring a friend or let others know where you’re going and when.
• Remember, online relationships can be exciting and attractive because they give you a chance to present yourself in a whole new light. But your prospective mate may also turn out to be someone else, much to your surprise and disappointment.
Credit and debit card scams
If you own a debit or credit card, you’re at risk of being scammed, either in person or while seated at your computer. Phishing e-mails are one of the most common methods scammers use to get your cards’ information. These e-mails usually look like they come from your bank or financial institution and they invariably ask you to verify your debit card or other banking information. Another on-line feature to watch for is the internet “pop-up” ad. Scammers often use them to trick you into signing up for memberships that charge monthly fees. No matter how careful you are with your personal information on-line, beware of skimming, the act of copying your debit or credit card’s information using an electronic reader often attached to an ATM machine or point-of-sale terminal. Protect your cards by:
• Ensuring you have a new chip-and-PIN debit or credit card.
• Always shielding your PIN when entering it. Don’t be embarrassed – you’re not insulting anyone.
• Using online authentication security like “Verified by Visa” or “MasterCard SecureCode”
• Verifying your purchases regularly online or on your monthly statement.
• Not letting your cards out of your sight when making purchases.
When it comes to scams, simple or sophisticated, being aware is still the best way to stay safe. Talk to your friends and family members about their scam experiences and read newspaper, magazine and internet articles explaining today’s scams. For advice on protecting yourself from the most commonly-reported scams, please visit the Canadian Anti-Fraud Centre’s new website antifraudcentre.ca.
