Crime Prevention Frauds and Scams

Millions of dollars are lost through frauds and scams, and thousands of victims are stung each year. In Winnipeg, each year someone loses his/her life savings to a fast-talking swindler who convinced them to take part in a something that was NOT what it seemed.

Con artists often see the elderly as easy targets for this type of crime, but we should all TakeAction to educate ourselves in the best methods to prevent frauds and scams.

PREVALENT FRAUDS

Salesman Con artists can contact you in a variety of ways:

Knocking on your door
Calling you on the telephone
Dropping a brochure in the mail
Email

Two of the most harmful frauds are:

Home Repair and Improvement Fraud – the con artist offers to perform work on your home that they say is badly needed or a great bargain. Unfortunately, it is usually badly overpriced and badly done; and they tend to find more things that need this overpriced, shoddy repair work.
Phony Prizewinner Fraud – the con artist proclaims that you are a winner of a fabulous prize, but you must send them money to cover one or more minor expenses. They may even send a courier to pick up the money from you … money that you will never see again! The prize turns out to be nonexistent or very minor in nature and not worth the money that you have just lost forever

Other types of frauds to be aware of are:

Insurance frauds
Funeral fund frauds
Business frauds
Investment frauds
Quackery and medical related frauds
Phony bank inspector fraud
Phishing
Advanced Fee Letter Fraud

SELLING TECHNIQUES

The con artist relies on a variety of techniques to sell his swindle:

Rush Deals – You only have a limited amount of time to take part or you will lose the deal. This is to pressure you into getting involved with their scam before you have time to think it through.

Scare Tactics – You are scared into thinking that the opportunity is golden and will never come again. When in fact they want to bilk you out of your money as fast as they can.

Pressure for Down Payment – They require cash right away or you will lose the opportunity. This is a ploy to get some money out of you as fast as possible

Secrecy – You are one of the select few who has been invited to take part in this special deal. In fact, they want you to keep the proposal a secret because they are defrauding you and don’t want you talking to anyone else about it.

Claims of Credibility – They tell you over and over that their proposal is legitimate, and they are a legitimate company. This is a ploy to get you to cooperate. Legitimate companies will give you all the time you want to think over a proposal. They will give you references and have no problem if you check with the Better Business Bureau or the Consumers’ Bureau

TAKEACTION TO PROTECT YOURSELF

Follow these tips to avoid being conned are:

Learn about common frauds and scams and how to TakeAction to avoid becoming a victim.
Check with officials (police, the Consumers’ Bureau, the Better Business Bureau) before entering into any transaction or whenever you have any doubts about dealing with anyone.
Shop around before purchasing services or products. Get references, compare prices and check performance.
Understand completely any contracts, estimates or other papers before they are signed. Never sign anything that you don’t totally understand. Check with trusted family members or friends, a banker or a lawyer, if necessary.
Whenever possible deal with local, well-established firms.
Never do business with anyone who appears at your door that you have not contacted first.
Identify any unknown service person or sales representative, before allowing them entry. Ask them for identification and verify it if necessary by telephoning their office.
Never conduct business over the phone unless YOU initiate the contact. Do not give out your credit card number over the phone.
Never pay for services until they have been performed to your complete satisfaction. Pay by cheque – not with cash.
Be very wary of any offer that promises great wealth with minimal effort. If a deal sounds “too good to be true” it probably is.
Don’t believe that everyone calling with an exciting promotion or investment opportunity is trustworthy, especially if you don’t know him or her or their company. Con artists can be very friendly and very persuasive, but all they want is your money.
Don’t be fooled by a promise of a valuable prize in return for a low cost purchase. A legitimate prize agency will never ask you for anything in return.
Don’t disclose any personal information, including information about bank accounts, credit cards, or personal finances to anyone for any reason

REPORTING FRAUDS AND SCAMS

If you have been a victim of a fraud, contact the Winnipeg Police Service at 986-6222.

If you have been a victim of a fraud, contact the Winnipeg Police Service at 986-6222.

It's not always easy to spot a scam, and new ones are invented every day. If you suspect that you may be a target of fraud, or if you have already sent funds, don't be embarrassed - you're not alone.

If you want to report a fraud, or if you need more information, contact PhoneBusters toll free at 1-888-495-8501, or via their website at www.phonebusters.com.

PhoneBusters is a national anti-fraud call centre jointly operated by the Ontario Provincial Police and the Royal Canadian Mounted Police. PhoneBusters plays a key role in educating the public about specific fraudulent telemarketing pitches. It is the central agency in Canada that collects information on telemarketing, advanced fee fraud letters (Nigerian letters) and identity theft complaints. The information is disseminated to the appropriate law enforcement agencies.

Reporting Economic Crime Online (RECOL) is an initiative that involves an integrated partnership between international, federal and provincial law enforcement agencies. It is administered by the Royal Canadian Mounted Police and other participating agencies. RECOL will recommend the appropriate law enforcement or regulatory agency and/or private commercial organization for potential investigation.

To report frauds on-line using RECOL, please visit www.recol.ca.

Seniors and Fraud

Seniors may be reluctant to report that they have been a victim of a fraud. If you or someone you know suspects they have been victimized, there are a number of things that should be done:

Notify responsible agencies immediately (police, the Better Business Bureau, Consumer and Corporate Affairs, Phonebusters).
Stop payment of any cheques as soon as possible.
Tell your story to the police. It is important that you tell your story and take steps to prevent it from happening again. Once someone has fallen victim to one these frauds, their name and telephone number may go on a “sucker list” that is sold to other criminals who will attempt more frauds.
Cooperate with police completely so that the criminal can be prosecuted.
Save any evidence such as receipts, cancelled cheques, contracts or the product itself, until it can be turned over to the investigating agency.

DEBIT CARDS AND AUTOMATED TELLER MACHINES

Woman at ATM Debit cards are an excellent alternative to carrying cash or credit cards, however, it is important that people TakeAction to protect themselves:

When selecting your Personal Identification Number (PIN), stay away from obvious codes, such as your birth date, Social Insurance Number or address.
Protect your PIN. Never write it down and leave it where a criminal could discover it. Once they have your PIN and your card, they have access to your accounts.
Never give out your PIN to anyone for any reason. No legitimate person or business will EVER ask you for your PIN.
Counterfeit Debit Cards: When using a debit card – make sure that the store employee swipes your card only once in the proper card reader. Although the vast majority of store employees and owners are honest, a small minority have a secondary card reader machine beside the legitimate machine. They will secretly swipe your debit card a second time – “copying” the banking information from its magnetic strip. They then memorize your PIN code as you type it into the machine when making your purchase. With this information, they can now create counterfeit cards and make purchases as if they were using your real card.
If you know ahead of time that you are going to need cash in the evening, go to the ATM during the day.
If you are having trouble using an Automated Teller Machine (ATM), DON’T ask the person in line behind you for help. Go into the bank or credit union and ask a teller for help and training on how to use the machine. Never trust a stranger.
When possible, use an ATM that is in a busy area with lots of people around. If you have to use one after dark, try and pick an ATM that is in a well-lighted area.
Always check for suspicious persons lurking around an ATM. If you see someone that gives you an uneasy feeling, don’t shrug it off – go to a different ATM.
Never count your cash out in the open where someone can notice it. You are unnecessarily putting yourself as risk.

If you want more information or have any questions about Consumer Frauds and Scams, contact the Winnipeg Police Service Community Relations Unit at 986-6322 or email us or Manitoba Consumer and Corporate Affairs Consumers’ Bureau at 945-3800.

If you would like a Police Officer to provide a Power Point Presentation on this topic you can forward your request via one of three ways:

email your request to wps-communityrelations@winnipeg.ca
fax your request to 204-957-2450
mail your request to:
Unit Commander
Community Relations Unit
P.O Box 1680
Winnipeg, Manitoba
Canada R3C 2Z7

Due to demand, we request you contact us at least six weeks prior to the event. Most presentations are one hour in duration and handouts are provided. The presentation is free of charge - room to be supplied by the organization requesting the presentation, with a minimum of 20 attendees.

Note: The spelling of Marihuana is from the Criminal Code of Canada