fraud…recognize it…reject it…report...

Toolkit for March Fraud Prevention Month 2016

Senior Support: Fraud Prevention and Awareness

FRAUD…Recognize It…Reject It…Report It.

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Table of Contents

Introduction --- 3

RCMP Videos --- 4

OPP Fraud Prevention Videos --- 4

Competition Bureau Fraud Prevention Videos --- 4

CAFC Logo --- 4

Calendar of Events - Facebook and Twitter --- 5

Statistics --- 6

Senior Support Unit (SSU) --- 6

Alarming Trend: Seniors as Money Mules --- 7

Extortion Scams --- 8

Prize Scams --- 9

Emergency Scams --- 10

Romance Scams --- 11

Services Scams --- 12

Identity Theft --- 13

Identity Fraud --- 14

Suggested Resources --- 15

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Introduction

In preparation for March Fraud Prevention Month, the Canadian Anti-

Fraud Centre (CAFC) has compiled this toolkit specifically for our senior

support groups to further raise public awareness and prevent Canadian

seniors from becoming victims of fraud. We encourage all partners to use

the resource materials in this toolkit on their websites, in print and on their social media

platforms. The CAFC will post daily on Facebook and Twitter (#FPM2016, #MPF2016) and

participate in the weekly fraud chats on Twitter on Thursday at 1pm ET. Use the following

hashtag – #fraudchat – to join.

The CAFC is Canada’s central repository for data, intelligence and resource material as it

relates to mass marketing fraud. Victims who report to the CAFC are also encouraged to report

directly to their local police. The CAFC does not conduct investigations but provides valuable

assistance to law enforcement agencies all over the world by identifying connections among

seemingly unrelated cases. Your information may provide the piece that completes the puzzle.

The CAFC is a support agency to law enforcement.

Senior consumers can report directly to the CAFC by calling toll free 1-888-495-8501 or online

through the CAFC Online Fraud Reporting System (FRS).

English - http://www.antifraudcentre-centreantifraude.ca/reportincident-

signalerincident/index-eng.htm

French - http://www.antifraudcentre-centreantifraude.ca/reportincident-

signalerincident/index-fra.htm

Comments, questions or feedback on Fraud Prevention Month are always welcomed.

Thank you,

The CAFC Fraud Prevention Team

Follow us on Twitter - @canantifraud

Like us on Facebook – Canadian Anti Fraud Centre

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This Toolkit includes:

1) RCMP Videos

- Face of Fraud Commercial (YouTube) -

https://www.youtube.com/watch?v=0rlWUcc57dM

- A Cry from the Heart from Victims, Romance Scam (YouTube) -

https://www.youtube.com/watch?v=blyhHl8rc7g – French video with English

subtitles

- Telemarketing Fraud: The Seamy Side -

https://www.youtube.com/watch?v=t7bhQJkelEg - French video with English

subtitles

2) OPP Fraud Prevention Videos

These videos feature CAFC staff and Senior Support Unit volunteers, and are available

on the following scam types: emergency (grandparent), phishing, sale of merchandise,

romance, prize and counterfeit scams. Videos are available in both official languages.

- English - http://www.opp.ca/ecms/index.php?id=582

- French - http://www.opp.ca/ecms/index.php?id=583

3) Competition Bureau of Canada Fraud Prevention Videos

Video’s are available on small business, job and employment, internet and mobile

phone scams. Videos are available in both official languages.

- English - http://www.competitionbureau.gc.ca/eic/site/cb-

bc.nsf/eng/03809.html#tab2

- French - http://www.bureaudelaconcurrence.gc.ca/eic/site/cb-

bc.nsf/fra/03809.html#tab2

4) CAFC Logo

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5) Calendar of Events - Facebook and Twitter “Scam of the Day”

Every day in March the CAFC will highlight a particular scam on both

Facebook and Twitter. This information will contain a direct link to the CAFC website where

additional details will be available; (information is available in both official languages). See the

calendar of events below. Scams involving seniors will be highlighted in week 3.

March 2016

Sun Mon Tue Wed Thu Fri Sat

1 Facebook & Twitter

Wire Fraud


Directory / Supply


Supplier Swindle


Card Not Present

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6 7 Facebook & Twitter

Canada Revenue

Agency (CRA)


Citizenship and

Immigration

Canada


Call Spoofing


Investments


Service: Interest

Rate

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Prize


Emergency


Romance


Service: Microsoft


Phishing

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Extortion


Counterfeit


Jobs


Sale of

Merchandise


Loans

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Rental


Timeshare


Vacation


Tweet: Ask me

About Fraud

Follow us on Twitter - @canantifraud

Like us on Facebook – Canadian Anti Fraud Centre

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Statistics

The top 10 schemes (based on dollar loss) reported by Canadian seniors

in 2015 are presented in the chart below.

Complaint Type Complaints Victims Dollar Loss

Romance 313 213 $7,176,843.41

Prize 2,168 427 $5,892,353.93

Investments 79 66 $3,532,029.27

Emergency 742 312 $2,231,307.03

Service 2,740 1,090 $1,795,240.65

Extortion 7,425 309 $1,087,411.51

Inheritance 631 27 $934,937.35

Timeshare 46 36 $830,822.11

Nigeria (Scam Letters) 98 7 $668,761.78

Other 304 49 $557,323.40

The CAFC’s SSU (Senior Support Unit) offers further support:

Seniors are targeted for many reasons: loneliness, lack of family support, age vulnerability and

health-related reasons. Seniors are particularly susceptible to fraud schemes because their

generation tends to be more trusting and less likely to end conversations. Fraudulent

telemarketers build relationships with seniors and gain their trust before victimization. Ruined

family lives, financial losses and suicides have resulted from this brutal crime against elderly.

The CAFC enlisted volunteer seniors to help with the battle against mass marketing and

identity fraud. The volunteers are able to relate personal experiences, provide support and

establish rapport with elderly victims. Since its inception in 1997, the SSU has grown to a

group of approximately 40 active volunteers who call victims of fraud to offer support,

education, prevention and awareness tips. SSU volunteers come from diverse backgrounds

and bring many different skills to the CAFC in an attempt to reduce mass marketing fraud and

identity theft.

CAFC’s senior volunteers were honoured with the RCMP Commissioner’s Volunteer Award in

recognition of their dedication to service and support for the Canadian Anti-Fraud Centre.

The CAFC SSU also supports Canadian law enforcement agencies with the tools and/or

resources to give fraud presentations to senior groups. For a CAFC PowerPoint presentation,

printed handouts, support, resources, we encourage you to contact your local police.

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Alarming Trend: Seniors as Money Mules

A money mule is used to describe an individual who is recruited by

scammers to serve as an intermediary to transfer stolen funds. The mule

may or may not be aware that they are being used. Their function is to

transport fraudulently gained money to insulate fraudsters, thus making it

more difficult to identify the criminal.

Warning Signs - How to Protect Yourself

• If you receive funds for any reason from an

unknown individual or company and you are

asked to forward it elsewhere - DON'T!

Chances are you are dealing with a scammer.

• Be aware of offers for employment from what

appears to be a legitimate employer. They will

place ads looking for a "Financial Officer",

which usually involves collecting payments for

the new employer and forwarding the money to a different country.

• Victims of romance scams have been used as money mules as their "loved one" is

working in a foreign country and needs assistance to collect funds. Never send money,

it's a scam.

• Consumers who have won a fake lottery receive advance payments on their winnings

and are asked to forward it to a "financial office" to cover fees or taxes.

• Any request to conduct unusual or questionable transactions on behalf of a third party

should be questioned.

Recognize the Signs of Fraud

If you think you or someone you know has been a victim of fraud, please contact the Canadian

Anti-Fraud Centre at 1-888-495-8501 or report online at http://www.antifraudcentre.ca

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Extortion Scams

An extortion scam is when any person unlawfully obtains money, property

or services from a person, entity, or institution, through coercion. The CAFC

has received many variations of the extortion scam but the Canada

Revenue Agency (CRA) scheme was most prevalent in 2015.

Seniors are being targeted by fraudsters

impersonating the real Canada Revenue Agency

(CRA). Whether by telephone or by email, the pitch

involves one of two variations. The fraudsters are

phishing for identification or asking that outstanding

taxes be paid by a money service business or by pre-

paid debit / credit cards. For example:

• There is notification by phone or email from

the "CRA" claiming there is a refund pending. In order

for the recipient to receive the refund they must

provide personal information.

• Consumers receive a notification by phone or email that they owe "back taxes" as the

result of an audit. The payment must be made immediately to avoid a fine or the

recipient is told there is an outstanding warrant that can be avoided if the payment is

made promptly. In some cases, individuals are told they will be arrested or deported if

the taxes are not paid right away.


• Do not take immediate action. Verify that what you are being told is the truth.

• Ask yourself why the CRA would be asking for

personal information over the phone or e-mail

that they likely already have on file for you as a

taxpayer.

• Contact the CRA to confirm that you in fact owe

back taxes, or are entitled to a refund, before

providing any personal or banking information.

For more information about fraud scams involving the CRA, visit www.cra-

arc.gc.ca/scrty/frdprvntn/menu-eng.html

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Prize Scam

A prize scam is any false, deceptive or misleading solicitation advising

victims they have won or have a chance to win something but are required

to pay an advance fee, such as taxes to receive the prize.

Seniors are solicited over the phone or email and advised that they are the winner of a large

lottery or sweepstakes. Prior to receiving any winnings, they must first pay an upfront fee. No

winnings are ever received.

Recently the CAFC has received reports where seniors receive a

call from an individual who claims to represent “Reader’s

Digest”, or “Set For Life Lottery”. They are advised that they

have won a prize and that in order to receive it, they must

provide their bank debit card number, date of birth and in

some cases are asked to enter their PIN into the telephone key

pad. Scammers target seniors who do not use online banking

services, and use their financial information to take over the

account which is then used to launder money and proceeds

from other mass marketing fraud scams.

Warning Signs – How to Protect Yourself

• Known lottery and sweepstakes companies such as

Reader’s Digest and Publisher’s Clearinghouse will never

request money up front in order to receive a prize.

• Any fees associated to winnings will never be paid through

a money service business such as Western Union,

MoneyGram or by loading funds to a prepaid credit card.

• Any unsolicited phone call advising that you have won a

lottery is fake.

• The only way to participate in any foreign lottery is to go

to the country of origin and purchase a ticket in person. A

ticket cannot be purchased on your behalf.

• Never give out personal information over the phone, no

matter who the caller claims to represent.



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Emergency Scam

An emergency scam is any solicitation from someone claiming to be a

friend or family member stating to be in some kind of trouble, and needing

money immediately. This is sometimes referred to as the Grandparent

Scam.

Scammers use social media, the internet and

newspapers to target potential senior victims, with

specific information that rings true to the

unsuspecting senior. Typically, the senior receives a

call from the scammer claiming to be a family

member or a close friend advising about an urgent

situation that requires immediate funds. Common

themes have been that the family member was

arrested or got into an accident while traveling. Fees

are required for lawyers, bail, or hospital expenses. Usually, the potential victim is instructed

to send money via a money service business like Western Union or MoneyGram.

Warning Signs – How to Protect Yourself

• Confirm with other relatives the whereabouts

of the family member or friend.

• Police, judges or legal entities will never

request that money be sent through money

service businesses.

• Never voluntarily give out family members’

names or information to unknown callers.

• Always question urgent requests for money.



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Romance Scam

A romance scam involves any individual with false romantic intentions

toward a victim in order to gain their trust and affection for the purpose of

obtaining the victim's money, bank accounts or credit cards. Moreover, in

some cases the suspect will attempt to get the victims to commit fraud on

their behalf – as a money mule.

There is a growing number of seniors who are turning to the

internet to find love. Unfortunately, scammers know this and use

every type of dating or social networking site to seek out potential

victims.

The scammer will gain the trust of the victim through displays of

affection and will communicate through the phone and email for

months if needed to build that trust. The scammer will claim to be located in a foreign country

but will want to meet up with the victim in person. It is at this time that the scammer will

advise that they can't afford to travel and will ask for money to cover travel costs. Other

variations include the scammer claiming that there is an emergency with a sick relative and

will ask for money to cover medical expenses.


• Be wary of someone who claims to be from

Canada or the U.S. working abroad.

• Be careful communicating with someone who

claims to fall in love with you quickly.

• Don't leave the dating site. Scammers will want to

use instant messaging or email.

• Beware of constant excuses that prevent face-to-

face interactions.

• Don't cash any cheques or send the person any

money for any reason, whatsoever!

• Beware of fake dating sites. Suspects will host

and create fake accounts to lure potential victims.



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Service Scams

A service scam is any false, deceptive, or misleading promotion or

solicitations for paid services. These solicitations involve third parties that

commonly make offers for telecommunications, internet, finance, medical

and energy services. Additionally, this category may include, but is not

limited to, offers such as extended warranties, insurance and sales services.

The CAFC receives reports on a number of service scams that seniors are potentially

vulnerable to:

• Lower Interest Rate - scammers call and make an offer to reduce interest rates on the

victim’s credit cards or line of credit. Personal information is requested such as SIN,

mother’s maiden name, date of birth and the credit card number with the expiry date of

the cards they want reduced. In addition, the scammer will request a “one time”

upfront fee to process the lower interest.

• Microsoft/Windows Technician - scammers call and pretend to represent a well-known

computer based company like Microsoft and claim that the victim’s computer is sending

out viruses or has been hacked and must be cleaned. The scammer will remotely gain

access to the computer and may run programs or change settings. The scammer will

then advise that a fee is required for the cleaning service and request a credit card

number to cover the payment. In some cases, the scammer will send a transfer from

the victim’s computer through a money service business like Western Union or

MoneyGram. The end result is that the victim pays for a service that was not needed as

the computer was never infected.



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Identity Theft

Maybe you never opened that account, or ordered an additional card, but

someone else did – someone who used your name and personal

information to commit fraud. When an imposter uses your name, your

Social Insurance Number (SIN), your credit card number, or some other

piece of your personal information for their use - in short when someone appropriates your

personal information without your knowledge - it's a crime, pure and simple.

Identity theft refers to the preparatory stage of acquiring and

collecting someone else's personal information for criminal

purposes. As of January 8, 2010, Senate Bill S-4 became law,

making it illegal to possess another person's identity information

for criminal purposes.

Identity theft techniques can range from unsophisticated, such as dumpster diving and mail

theft, to more elaborate schemes. Technology, mainly the internet, facilitates more elaborate

schemes, such as skimming, phishing and hacking as criminals gather profiles of potential

victims. Computer spywares and viruses, designed to help thieves acquire personal

information, are an emerging trend.


• Be wary of unsolicited e-mails, telephone calls or mail

attempting to extract personal or financial information.

• Ask yourself if you really need all of the identity

documents you carry in your wallet or purse. Remove

any you don't need and keep them in a secure place

instead.

• Periodically check your credit reports, bank and credit

card statements and report any irregularities promptly

to the relevant financial institution and to the credit

bureau.

• Memorize all personal identification numbers for

payment cards and telephone calling cards. Never write them on the cards.

• Familiarize yourself with billing cycles for your credit and debit cards.

• Shred personal and financial documents before putting them in the garbage.

• When you change your address, make sure you notify the post office and all relevant

financial institutions.

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What is Identity Fraud?

Identity fraud is the actual deceptive use of the identity information of

another person (living or dead) in connection with various frauds (including

for example, impersonating someone and misusing debit card or credit card

data).

Criminals can use your stolen or reproduced personal or financial information to:

• Access your computer, email accounts, or bank accounts

• Open new bank accounts;

• Transfer bank balances;

• Apply for loans, credit cards and other goods and services;

• Make purchases;

• Hide their criminal activities; and

• Obtain passports or receive government benefits.

While you probably can't prevent identity theft entirely, you can minimize your risk. Identity

theft is on the rise and it can happen to anyone. It can happen to you. By managing your

personal information wisely, cautiously and with an awareness of the issue, you can help

guard against identity theft.



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Additional Suggested Resources:

• ON Consumer Beware List:

http://www.consumerbeware.mgs.gov.on.ca/catsct/start.do

• Top 5 Scams/hoaxes: http://www.snopes.com/fraud/topscams.asp

• Registered Canadian Charities: http://www.cra-arc.gc.ca/charities/

• RCMP Scams and Fraud: www.rcmp-grc.gc.ca/scams-fraudes/index-eng.htm

• OPP Senior Issues: http://www.opp.ca/ecms/index.php?id=151

• Better Business Bureau Canada: http://www.bbb.org/canada/ (Top 10 Scams and Tips)

• Canadian Securities Administrators Tips:

http://www.newswire.ca/en/story/864041/top-investment-scams-in-canada

• OSC Investor News: http://www.osc.gov.on.ca/en/home.htm

• Computer virus Information and Tips: http://nakedsecurity.sophos.com

• Identity theft tips from the RBC: https://www.rbcadvicecentre.com/how-to-protect-

yourself-from-identity-theft

• Reporting SPAM: http://fightspam.gc.ca/eic/site/030.nsf/frm-eng/MMCN-9EZV6S

• Do not call list: www.lnnte-dncl.gc.ca/insnum-regnum-eng

• Online protection-USA: http://www.onguardonline.gov/articles/0346-tech-support-

scams

• RCMP Internet Safety Tips: http://www.rcmp-grc.gc.ca/is-si/index-eng.htm

Now… “Ask me About Fraud”

fraud…recognize it…reject it…report...

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