Recent Scams and Cons
“Phishing” Scam
Phishing is the act of sending mass emails to members of the public claiming to be an established, legitimate business or banking institution in an attempt to scam the user into providing private information that will be used to perpetrate an identity theft. The email directs the victim to visit a website where they are directed to ‘update’ their account information such as their password, SIN number or other account details
These emails are created to look exactly like the company’s real website. The email is designed to lure the victim into believing that the email is from the bank’s security department and is connected to the bank’s internet banking system. The email directs the victim to click on a URL, which in turn generates a webpage. This webpage is the webpage created by the criminal and instead of your information going to the bank, it is being sent to the criminal’s web server.
Members of the public are reminded that at no time will a financial institution initiate an email asking people to confirm their banking or personal information.
“Cheque disbursement fraud”
This fraud targets individuals who have posted their resume on the World Wide Web and expressed an interest to work at home. The criminals access the victims resume by going onto popular resume posting websites such as monsterjob.ca or workopolis, locating individuals who have expressed an interest to earn income while working from home. A majority of the victims are stay at home mothers and retirees.
The criminal contacts the victim purporting to be from a reputable business. The criminals will go to the extent of having a registered business to help support their endeavor and will have contact numbers being run by accomplices in their crime.
The criminal will advise the victim that their company is outside of Canada and they need funds dispersed to several companies, but are unable to do so because they do not have an account with a Canadian banking institution. The criminal will send the victim a cheque with directions to deposit the cheque into their account, keep a portion of the money for the work they are conducting on behalf of the criminal’s company and then send the remainder of the funds to various parties by way of western union money orders.
The unsuspecting victim will be contacted by their bank at a later date advising the victim that the cheque they deposited into their account was a fraudulent cheque and the bank is holding them financially responsible for the transaction.
Peel Police would like to remind people that money sent care of Western Union can be received from anywhere in the world not just the location where it is being sent.
“Free Puppy Scam” – A new twist for an old scam
This fraud is a twist on the advanced fee fraud which has been going on for decades, previously using the mail and now using the internet. In this scam the criminal sends out emails claiming the victim has won a large cash prize or has inherited a large sum of money from a distant relative in another part of the world that has passed away. The catch is that in order to claim the winnings or the inheritance the victim must send the criminal money to pay for various taxes and fees.
The new twist that criminals are using plays to the victim’s love of animals. By using popular online advertising websites the criminals offer free puppies, often purebred dogs such as bulldogs or golden retrievers. Once a victim shows that they are interested in obtaining one of the puppies, the criminals request money to pay for the shipping of the puppy or the associated tax for shipping the puppy over the border. The victim eagerly pays the associated fees waiting for their new puppy but the puppy never arrives and the victim is out the money they have sent.
As with anything, it is very important to research before you make any purchases or engage in transactions over the internet. There are reputable pet rescues that do need the help of the public to find homes for abandoned animals so it is very important to check the source before agreeing to take an animal.
“Scratch and Win” Lottery Ticket Scam
This scam is a new scam that has just begun to take off. Criminals are leaving scratch and win lottery tickets in motels, malls, and restaurants etc. where they will be found by the public. The unsuspecting victims are finding these scratch and win tickets and scratching off the play squares and are “winning” cash prizes for hundreds of thousands of dollars. On the back of the ticket there is a phone number that the ticket holder is advised to contact if they are holding a winning ticket.
Upon calling the number the victim speaks with a party that congratulates them on their win and then enquires if they are a member of the lottery club that issues the tickets to its club membership. The victim will advise they are not, at which time they are advised they cannot claim the prize without being a club member.
They are then advised that they can join the club as a new member and after doing so will be eligible to claim the prize. Upon agreeing to sign up for the club the victim is advised that there are associated membership fees and associated expenses they must pay to be a member.
The victim is directed to deposit funds into account by way of an electronic funds transfer or a money order. Once the victim has sent the funds they never hear back from the lottery group.
Victims are being defrauded out of thousands to tens of thousands of dollars.
The tickets that have been turned over so far are silver in colour, with a car, dice, playing cards and a stack of money as the symbols for the scratch squares.
Remember to always contact the Ontario Lottery and Gaming Commission with any inquiries when it comes to lottery winnings. All legal lottery tickets or scratch and win cards are regulated by the Ontario Government through the Lottery and Gaming Commission.
Recently, some people have been receiving phone calls from scam artists that identify themselves as a member of the security department for a major credit card company such as VISA or MASTERCARD. The scam artists already have the victim’s credit card number from one of many possible sources. They make a phone call because they are after the three or four digit security code printed on the back of the card.
The scam is as follows:
The caller will advise the victim that their card has been flagged due to an unusual purchase pattern. The scammer will be able to recite the victim’s card number and the bank it came from. They will then question the victim whether or not they recently purchased an Anti-Telemarketing Device for $497.99 from a marketing company based in Arizona or something similar to that.
The victim will, of course deny the purchase and the scammer will advise them that a credit will be issued to their account immediately. The scammer will confirm the victim’s address so the proper paperwork can be sent out. The victim is then advised that a Fraud investigation will commence immediately and they are provided with a reference number for their case.
At this point the scammer will say to the victim "I need to verify that you are actually in possession of your card". The victim will be asked to turn over their card and locate the last three or four digits on the back of the card. The victim is then asked to read those numbers to the scammer.
Once the scammer has those numbers the phone call wraps up quickly. Once he is off the phone the scammer will then charge an amount just under $500.00 onto the victim’s credit card.
Major credit card companies are aware of this scam and they want you to be aware too. Credit card companies will not ask for anything on the card as they already know the information on it.
There are many different types of scams involving stolen altered cheques. The cheques are stolen somewhere along the mailing process up to, and including, after the mail has been properly delivered. The criminals take an authentic cheque and alter the amount and/or the payee. These cheques are then used in the following scams:
Internet/Classified Purchases
You may have something for sale on the Internet or in a local newspaper classifieds. A potential buyer contacts you and advises they are interested in buying your item. The buyer then gives you some type of story as to why they have to issue you a cheque in an amount worth more than the item they are purchasing. You are asked to process the cheque through your bank account, told to keep the proper amount of money for the purchase, and sometimes a little more for your trouble, and wire the excess amount back to a specific address. (Usually a post office box) No one ever comes to pick up the property and the cheque gets returned to your bank account as stolen, leaving you financially responsible for the amount you sent back to the criminal.
Business Transactions
This is a variation of the above fraud, where the criminal(s) contact a business in our Region advising them that they want to purchase goods. A cheque is then sent to pay for the goods and the product is shipped. Unfortunately, the cheque is eventually returned as stolen and/or altered, and you are out the value of the goods you have shipped. Although a shipping address is given, they normally come back to empty residences, commercial buildings or ports overseas.
Card Skimming
Skimming is the process whereby criminals are able to download the information on the magnetic stripes on the back of your credit and debit cards, along with your Personal Identification Number (P.I.N.). This information is then transferred onto any card that has a magnetic strip and used to access your credit card or bank accounts. Even if you have no money in the account, there are methods that allow the criminal to artificially inflate your bank balance and then remove the money from your account.
Normally this occurs with the use of a card reader and pinhole camera. The best way to prevent this from occurring is to cover the keypad when entering your P.I.N. number. Be aware, there is technology that can capture your personal information without the use of a camera.
Inheritance Fraud
This is a relatively new scam, where the victim is contacted through e-mail advising them that they have received an inheritance from a family member. Normally the name is someone you have never heard of, from a country you have never been and most likely never thought you had family in. The amount of the inheritance is substantial. The only catch is you have to send them money first in order to get your money. Of course, if you do send them money then they need more because another problem has come up. The catch is no matter how much money you send them the inheritance never arrives.
Lottery Ticket Fraud
This scam occurs when a complete stranger approaches you on the street or in a parking lot and explains they have a winning lottery ticket, but for many different reasons are not able to cash it. For a fee, some times as high as $30,000.00, they will either split the winnings with you or even give you their entire windfall. A second person then appears, stumbling across your conversation, and shows interest. This person wants to be part of the winning ticket. This second person then advises they are going to call the lottery office and confirm the ticket. The phone is handed over to the unsuspecting victim and the person on the other end verifies the ticket. The second person then offers to drive the victim and the person with the winning ticket to their bank, where they allegedly withdraw a portion of the money and turn it over to the ticket holder. The victim then does the same. The scam artists then say they are going to get a photocopy of the ticket, at which point the victim is driven to a store and asked to go in to make a photocopy of the ticket for everyone. When the victim returns the two scammers are gone.
A variation on this scam is where the victim advises they don’t have any cash. The victim is encouraged to obtain a credit card, where money gets withdrawn or purchases are made in the same amount of the cash that was being asked for.