In honour of Fraud Prevention Month, we are reminding you of tips that will help you, your family and your business avoid becoming the victim of fraud or identity theft
In Canada, the Competition Bureau, is an independent law enforcement agency, that ensures Canadian businesses and consumers prosper in a competitive and innovative marketplace.
Headed by the Commissioner of Competition, the Bureau is responsible for the administration and enforcement of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.
1) Password Tips
At least use a combination of letters and numbers and where allowed, use symbols to mix things up
Disable Auto Complete or other memorized password functions on your browser. This is especially true if using public services computers such as those at your local library. This is also true if you lose your own computer.
Your bank, credit card company will NEVER ask you to disclose your personal account information on line or over the phone.
Change your password regularly. Set a specific date, say Spring and Fall Solstice, where you go on-line and change ALL of your passwords at one time.
2) Protect your personal information
Ensure the safety of personal information such as your social insurance number, driver’s license number, or credit card numbers.
Only provide personal information when you have initiated the contact or you are dealing with someone you know. Also, be sure to keep your bills and financial statements in a safe place and shred them when you no longer need them, don’t just throw them into recycling.
Carefully review your bank statements and credit card statements as soon as you receive them. If you suspect unauthorized use, contact the institution immediately.
3) Always use up-to-date anti-virus software from a reputable vendor to protect your computing environment from harmful software.
Most anti-virus programs include an auto-update feature that enables the program to download profiles of new viruses so that it can check for them as soon as they are discovered.
Look for a package that also comes with anti-malware and anti-spyware software.
Installing a personal firewall can also help protect your system from hackers.
The Competition Bureau of Canada discusses some of the most common scams that you may come across. Become aware of these scams to avoid becoming the next victim!
Business Scams
The business looks and sounds like any professional vendor you’ve ever dealt with…but before you know it, you’re trapped. Office supplies you never ordered are delivered, goods are paid for but never received, and their customer service staff is not authorized to cancel orders that you’re certain you never placed. What’s more, collections agents from these supposed vendors get nasty…suspiciously so. Remember: A reputable vendor cares enough about your business to treat you with respect, but a criminal is only interested in getting your money today, and closing up shop tomorrow. Click below to get some first-hand accounts of how these scams operate.
Types of Business Scams
Office Supply Scams
Typical products used in this type of scam include paper, ink toner, first aid kits, light bulbs, paper rolls for debit and credit machines and various commonly-used office supplies.
This scam involves one or more unsolicited phone calls to a targeted business. The goal of the first call is to gather information on your company, such as your name, names of your colleagues, a corporate mailing address or type of office equipment used. A second or third phone call is placed to a colleague and the caller uses the acquired information to imply an existing business relationship. Thus, your colleague is misled and then is drawn into agreeing to accept shipment of supplies that were never ordered in the first place (this is referred to as an “assumed sale” scam).
When the supplies are delivered, you realize that they are not what you thought you were getting–they are of poor quality and cost as much as 10 times above the market rate. If you try to send the box back, you find that their mailing address does not accept deliveries.
When you refuse to pay the invoice, you receive countless aggressive collections calls threatening to report you to credit agencies and local business associations to damage your reputation. If you do pay, the problem can get worse as the scammers continue attempts to get even more money from you.
Directory Scams
Businesses and not-for-profit organizations are also targeted in directory scams. Organizations are asked if they want to either advertise within or purchase an online, CD-ROM or print directory specifically designed for your sector or industry. You agree to buy it. Either it does not exist, or it contains no reliable information whatsoever, or there is no real value to the advertising.
Sometimes a telemarketer will contact you to ask you if you want to renew your two-year subscription to their directory when in fact, your office never had such an account. Many people are fooled into paying for an invoice without checking their records to confirm if they placed a previous order, or ensuring that the directory exists in the first place, and that the business is one they have hired.
These scams prey on the fact that all organizations want to promote themselves, so a pitch featuring a way to increase people’s awareness about your operations will likely grab your attention. If you do receive a directory, it may feature some real but mostly bogus information. However, if you don’t look too closely, and if you don’t use it, you may never come to realize that it’s a scam.
Phoney Invoice Scam
This scam follows the “assumed sale” tactic described above by simply sending an invoice or bill requesting payment to an unsuspecting target.
In this scam, you receive an invoice or bill requesting payment. The phoney invoice may arrive with a product. The invoice appears credible, with a professional layout and on high-quality paper. You are misled into believing this invoice requires payment. Over time, these fraudulent operations appear on your vendor lists, which means that the next invoice is more likely to be paid without question.
This scam often impersonates a legitimate business, and at a quick glance, the paper you receive can often be mistaken for a bill for real charges. Invoice scams typically are for low amounts that are more likely to go undetected, but small quarterly or monthly losses add up over time.
Common Tactics
Scams targeting businesses and not-for-profit organizations often work because the victims were under the impression they were dealing with a professional, credible and reputable business. Here are samples of techniques often used by fraudsters to con you:
Reciprocity: “We’ll give you something, so you give us something in return.” This means they may offer a prize, a special price, or other privileges to get your agreement to send money or to confirm an order.
Foot in the Door: Sometimes fraudsters will get you to agree to some small purchase, and then surprise you with larger commitments later. For example, you agree to accept a free box of paper, but then find out that in doing so, you have agreed to a monthly supply of paper.
Pitch a Better Deal: Some scams may offer something really expensive and out of a person’s price range. Expecting you to balk, you are offered something cheaper, which now looks more reasonable. You may mistakenly feel like you got a good deal but later realize that you have been defrauded.
Initial Agreement Pressure: Early in the pitch, you are asked a question like: “Do you like to save money?” Later in the transaction, you are made to stick to your word by committing to a purchase by reminding you that: “You said you wanted to save money.”
Peer Pressure: “Four out of five of your neighbours/competitors have already bought it. Can’t you afford to? Don’t you think your neighbours are smart people?” This tactic is effective because it gives the impression that this company has a good reputation, is well known and is trusted by your peers.
Flattery: Many scam artists are charming and personable and give compliments as a way of disarming you and getting you to fall for the con. “Just for you…because you’re in an exclusive group…because you have a beautiful voice…because you are a high achiever…because you have a good credit rating…We seek the top 10% of businesses in each industry for membership in the directory.”
Authority: Borrowing credibility from an outside source can be effective. Claims such as: “We’re registered with the government as the official supplier of…” or “You are required by law to buy this…” or “We’re owned and operated by MBA graduates with over 12 years experience in the industry.” are highly persuasive and disarming.
Scarcity: Here the scam artist makes you feel that you will miss out if you don’t say yes immediately. “Act now, because we only have a few left. The offer ends tomorrow.”
Urgency: This is another pressure tactic: “I’m glad I caught you today. Prices go up next month.”
Exclusivity: Everyone loves to feel that they are getting special treatment or have access to privileged information. Be weary of such ploys. “Don’t tell anyone else I’m making you this offer.”
Alter-casting: As a means of persuasion, this technique places you in a highly-desirable and respected social role by telling you: “As a critical member of your organization, you should know…” or “Are you the manager? Then you should have the authority to approve this offer now…”
Excitement / Emotional Involvement: Con artists are skilled at getting you excited about the pitch: “You’d be crazy not to sign up today. I wish I were you and could afford to do this myself.”
Give a Little Bad News to Appear Honest: For example, “There’s been a problem in shipping…we need to verify the order, confirm delivery date.” Another example: “Our manufacturer is folding. This is your final delivery of…”
Creative Name Use: They’ll give a company name that sounds large, national, international…and they will also give the first or last name of the caller, despite probably being an alias.
Paperwork and Professionalism: When you say “I’m not sure I ordered it”, you are told, “My records show that I called you on (date) / at (time) and confirmed the amount. I’ll include my personal business card in case you have a problem with the order.”
Key Phrases Used
Have you heard the following? Review this list and think about the ways these phrases might be used to fool you:
“We are calling about a pre-authorized purchase.”
“We’ve had some delays in our shipping department and need to confirm your order.”
“Unfortunately, we’re calling to close your account with us.”
“Do you require a purchase order number or can I send it directly to you?”
“You’ll be receiving a verification call from our quality control department.”
“We are calling to confirm shipping details/account information.”
“We’ll be recording our call for quality control purposes.”
“I’m not authorized to cancel your order/close your account.”
“You have a two-year listing with us.”
“May I ask what type of printing equipment you use?”
“We seem to have overpaid you.”
“I am calling to approve your advertising copy for our directory.”
“I would then have to re-invoice you.”
“There’s no way I can retract your order.”
“I was speaking with you previously.”
“If you have any questions, you should ask me now. Our shipping department won’t be able to answer them when they call to confirm delivery details.”
