March is Fraud Prevention month, and the Better Business Bureau kicked it off today by counting down their Top Ten Scams of 2016 and how to prevent becoming a victim:
10.
Fake Online Endorsements and Sponsored Content – Consumers are enticed to purchase a product or service based on reviews by social media influencers. The reviews may not be genuine and the influencer may have been paid to do it.
- read everything online with a “grain of salt”
- seek other review sources and BBB.org
9.
Canada Revenue Agency Scam (CRA Scam) – The number one scam of 2015 has persisted and is now on the 2016 list. A crackdown on a call centre in India has seen a dramatic decrease in the number of calls targeting Canadians.
- CRA does not make threatening phone calls
- CRA does not request information by phone or email
8.
Fake Lottery Winnings – If you didn’t enter, you can’t win. These calls come at all hours and claim you’ve won a big US lottery, but you need to pay a tax or insurance fee before you get your millions.
- do not ever pay to receive lottery winnings
- contact the corporation directly
7.
Binary Options Scam – Big promises of low risk, high returns, and full refunds entice Canadians to take a chance on an unregulated 50/50 bet on a stock’s performance. They delay winnings — if you win at all.
- understand high risk is involved
- seek professional investment advice
6.
Wire Fraud / “Spearphishing” – Spearfishing is a big problem for the business community. Millions are lost when scammers pose as company brass and demand money be wired to a fake company email.
- find payment redundancies in your business
- be vigilant on any incoming emails
5.
Online Purchase Scams – Counterfeit merchandise, goods that never show up, fake websites, and free trial traps are everywhere.
- shop on legitimate websites
- use third party payment portals and other secure website payment options, like Paypal
4.
Advance Fee Loans – Paying an up-front fee to get a loan is illegal in Canada and the US. These scammers prey on those who don’t qualify for loans through reputable lenders.
- you are not required to pay fees for loans
- seek alternative finance options
3.
Identify Fraud – Scammers steal your identity to secure credit cards, bank loans, and even rent property in your name. Even children are susceptible to identity fraud.
- never carry your social insurance card with you
- change your online passwords regularly
2.
Romance Scams – Online dating is big business for scammers. “Catphishing” is when a fraudster fakes an identity and tricks someone via dating sites into a phony emotional or romantic relationship for financial gain.
- do not wire money to people you have never met
- if they are out of the country or you have never met in person, run the opposite way
1.
Employment Scam – The most reported scam to the Better Better Bureau involves people getting a job they haven’t applied for – generally a job you do from home. They are asked to deposit cheques and to send money back to the company.
- do research on companies before accepting
- if you did not apply, it’s not real
- if you are asked to deposit cheques to send money back, it’s a scam
For more information on scams and how you can protect yourself, visit the Better Business Bureau website.