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Top 10 scams of 2018 bilked Canadians of a record amount of money

Since most scam victims never file a report, the amount lost could be more than $1 billion
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The Top 10 scams of 2018 bilked Canadians out of $121 million — a new record — but the real losses are almost certainly much, much higher.

Canadians set a new record last year by losing more than $121 million to scammers, up from $95 million in 2017, and more than double the amount lost in 2015. While the losses continue to trend upward, the percentage of victims who actually come forward is less than 10 per cent, suggesting that actual losses are somewhere in the range of $1 billion dollars for 2018.

“In the past, people believed scammers only targeted seniors. However, the statistics are telling a different story,” says Danielle Primrose, president and CEO of Better Business Bureau (BBB) serving Mainland BC and the representative for BBBs across Canada. “Scams are evolving: they are more aggressive, devastating, convincing, and there is now a scam for everyone.

“Scammers are bolder than ever, which is why we need to keep informed and take proactive steps to protect our information and finances. I cannot stress enough how important it is to report every instance of scams and frauds.”

For more than 25 years, BBB’s National List of Top 10 Scams has been instrumental in promoting scam awareness and fraud prevention across Canada. This year’s list was generated using key information from the BBB Scam Tracker, critical concerns highlighted by community partners and sponsors, as well as collaborative input from the 10 BBBs in the country and the Canadian Anti-Fraud Centre.

The top scam for 2018 is Romance Scams, which bilked Canadians out of more than $22 million (all numbers are reported figures only), and which have evolved and extended in such a way that they earn the number one spot. Income Tax Extortion Scams—also known as the CRA Scam—are in number two, with Canadians losing more than $6 million in 2018.

Online Purchase Scams are in third place (losses of more than $3.5 million). These scams range from fake websites and free trial traps to purchasing counterfeit goods or receiving fraudulent cheques from a buyer on sites like Craigslist. Always shop on legitimate websites and use reputable payment portals; never wire money to someone you do not know; and if possible, do transactions locally and in person.

As reported in The Journal last week, Employment Scams are prevalent, and are at number four in the Top 10 list, costing victims more than $4.5 million. The losses due to Phishing Scams (number five) are unknown, as these scams can take many forms: from fake invoices and online endorsements to wire fraud. Fraudulent emails and fake websites that are created to deceive the public into believing they are authentic also continue to this huge problem.

The losses from Subscription Scams (number six) are also unknown. Be wary of online advertisements and pop-ups promoting skincare and cosmetic products, as well as weight loss and diet pills. Canadians have been enticed by fake celebrity endorsements and the promise of a “risk-free trial”, but end up falling into subscription traps with large monthly charges to their credit card.

Advance Fee Loans and Tech Support Scams—numbers seven and eight respectively—cost Canadians close to $1 million each. The former scam takes advantage of vulnerable people who are in a financial bind, while the latter has scammers who call up and pretend to be computer techs from well-known companies like Microsoft or Apple, or which will send pop-up messages that warn about computer problems. They will say they have detected viruses or other malware on your computer and need you to give them remote access to your computer. Eventually, they will diagnose a non-existent problem and ask you to pay for unnecessary or even harmful services.

BBB doesn’t know how much money was lost to Home Improvement scams (number nine), which might start with a knock on the door, a flyer, or an advertisement. Door-to-door solicitors offer quick, low-cost repairs and then take payments, often without returning. If they do return, they do shoddy work, leave incomplete projects, or create issues that dramatically increase the cost of the job. One common hook is when the scammer claims to be working in your neighbourhood on another project and has leftover supplies. Work with local businesses that have proper identification, licensing, and insurance.

Rounding out the 2018 Top 10 Scams are Bank Investigator Scams (more than $2 million), which are new to the list. They start with a phone call from someone claiming to be a bank representative, law enforcement officer, or investigator, who tells you that there is fraudulent activity on your account. They may ask for your credit card details to cancel the transaction; in other instances, the victim is told to call the number on the back of the card, but the caller does not disconnect the call. The victim is operating in a panic and does not realize they are still speaking to the scammer.

In some instances, the victim may even be asked to transfer funds to another account for protection until the investigation is over, or accept a deposit to later transfer it to another account. However, the deposit is not real, and victims transfer their own money to scammers.

For more details on the Top 10 Scams and tips to avoid them, go to http://bit.ly/2GYjVgC.

Reporting scams and frauds plays a vital role in assisting law enforcement and organizations like BBB to gather accurate statistics, as well as track, apprehend, and prosecute criminals. If you are a victim, or have encountered a business or offer that sounds like an illegal scheme or fraud, tell BBB about it by visiting www.bbb.org/scamtracker. Scam Tracker not only allows you to report scams, but to also identity the ones that may be operating in your area.

Make cybersecurity a priority by regularly changing the passwords to your online accounts. Using strong passwords and changing them every few months makes it difficult for scammers and hackers to gain access to confidential information. On March 15—National Password Day—try changing the passwords for the top three online accounts you would not want to get hacked.



editorial@accjournal.ca

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