Fraud Aware

Fraud Types

Fraudsters Gain Your Trust, and then Steal Your Money.

They use any means to contact victims—telephone, snail mail, email, and the Internet. They gain your trust and when they have you hooked, they ask you for money; then they take it and run. The scammers also try to lure you in through constantly. But you can protect yourself and your friends and family by arming yourself with knowledge of the most common types of fraud.

Advanced Fee / Prepayment

You are asked to send money to pay a fee up front for a product or service

Mystery Shopping

You are contacted for an employment opportunity to send money using a money transfer service and evaluate the service

Overpayment

You receive a check for an amount higher than the agreed-upon price and are asked to send back the excess funds using money transfer, but the check is fake

Employment

You are asked to send money for a job opportunity you have accepted

Lottery / Prize

You receive notification you have won a lottery/sweepstakes and need to send money to claim the prize

Rental Property

You are interested in a rental property and asked to send money for reasons that seem legitimate, but the property is not real

Emergency / Grandparent

You are asked to send money to a friend or family member for an emergency situation

Internet Purchase

You are asked to send money to pay for a product, auction item or service advertised online

Relationship

You meet someone online, develop a relationship with them, then you are asked to send money to them

Fake Cheque

You receive a check and are asked to send a portion of the money back for what seems to be a legitimate reason, but the cheque is fake

Scam Types

Advanced Fee / prepayment

Scammers pose as representatives from phoney loan companies and use authentic-looking documents, emails, and websites to appear legitimate. They charge "fees" in advance of making loans. Consumers pay, but the loans never come through. Scammers are long gone and they sometimes actually change the name of their "businesses" to hide from law enforcement.

This is one variation of a scam called the "advance fee" or "prepayment" scam. Scammers can also lure victims in with promises of investments or inheritance gifts in exchange for a fee. But it all comes down to the same theme: Victims pay money to someone in anticipation of receiving something of greater value and then receive little or nothing in return.

Mystery Shopping

Mystery shopping scams are popular with criminals who target employment websites. The ploy's simple: Scammers send victims a check and tell them to use the funds to "evaluate" Western Union's money transfer service. Victims wire the money only to find out later that the checks bounce and they're responsible for paying the bank back.

Overpayment

With overpayment scams, fraudsters play the role of buyer and target consumers selling a service or product. The "buyer" sends the seller a legitimate-looking check, usually drawn on a well-known bank, for an amount higher than the agreed-upon price. They concoct an explanation for this overpayment and instruct the seller to deposit the check and wire back the excess funds. Weeks later, the victim learns the check is fake, but is still on the hook to pay the bank back for any money withdrawn.

Employment

Employment scams generally start with a too-good-to-be-true offer—work from home and earn thousands of dollars a month; no experience needed—and end with consumers out of a job and out of money. They generally follow one of three patterns:

Scammers pose as a new employer and send victims a check to cover "start-up" expenses, like supplies. Victims deposit the check, buy necessary supplies and wire any remaining funds back to the scammer. Weeks later, they find out the check was fake and they're on the hook for the entire amount.
Scammers pose as "recruiters" pitching offers of guaranteed employment to job offers on the condition that victims pay up front for things like credit checks or application or recruitment fees. Victims pay, but offers never materialize.
Scammers pose as company representatives and seek sensitive personal and/or financial information from victims under the guise of doing credit or background checks. They then target victims later on for identity theft.

Lottery / prize

Lottery or prize claims follow two familiar patterns:

Victims get an unsolicited phone call, email, letter or fax from someone claiming to work for a government agency or representing a well-known organization or celebrity, notifying them that they've won a lot of money or a prize. The scammer says that they must send payment, often in order to collect the winnings. They are told to send a small sum of money to pay for processing fees or taxes. Following these instructions, victims immediately wire the money, but never get their "winnings". And they're out the money they paid for "fees and taxes".
Victims get an unsolicited check or money order and directions to deposit the money and immediately wire a portion of it back to cover processing fees or taxes. Weeks later, victims learn that the checks are counterfeit, but have already wired the money to cover the "fees" and can't get it back. And they're on the hook to pay the bank back for any money they withdrew.

Rental property

Sophisticated scammers use the internet, and particularly free classified websites, to prey on unsuspecting real estate victims. Rental property scams generally happen in one of two ways:

Renters are looking for a house or apartment to lease and get scammed by an "owner". Victims come across a place in a great area, at a great price. The advertisement looks legitimate so they start communicating with the "owner", generally by email. The owner says the place is theirs if they wire money to cover an application fee, security deposit, etc. They wire the money, and then never hear from the "owner" again.
Owners are renting out their house or apartment and get scammed by a "renter". "Renters" contact victims, generally by email, and express interest in leasing the house or apartment. Scammers send a check for the deposit but then cancel the deal. Victims wire the money back only to find out the check was a fake.

Emergency / grandparent

Emergency scams play off of people's emotions and strong desire to help others in need. Scammers impersonate their victims and make up an urgent situation - I've been arrested, been mugged, I'm in the hospital—and instruct friends and family to wire them funds to get help, and money.

Emergency scams also come in all shapes and sizes. There's the Grandparent Scam where con artists contact the elderly claiming to be their grandchild, urgently asking for money. And the Social Networking Scam where con artists hack into social networking profiles and then target the victim's friends with fraudulent requests for money. In each case, the scammer is able to play it looking email profile. They use the information in their profiles to supply enough personal details to make their imparts appear legitimate.

Internet purchase

In the internet purchase scam, criminals prey on victims who bid on items using an online auction website or service. It generally plays out in one of two ways:

Victims win the bid, which is likely a sham or set up, and are told the seller only accepts money transfers for payment. The seller tells the buyer to put the transaction in a fictitious name, or the name of a loved one. Scammers convince victims their money will be safe until the goods or services are received. The seller then moves a step in the fictitious name and retrieves the funds. The merchandise never arrives.
There are variations where the original auction is legitimate, but the victims don't win the bid. They're contacted later by another party offering to sell them the same item under similar terms and instructed to wire the money as payment. The money is sent but the buyer never receives the goods.

Relationship

The relationship scam starts simply: A man and woman meet on the internet. The relationship progresses: They email, talk on the phone, and trade pictures. And, finally, they make plans to meet and even to get married. As the relationship gets stronger, things start to change. The man asks the woman to wire him money; he needs funds to travel to visit a sick uncle. The first wire transfer is small but the requests keep coming and growing - his daughter needs emergency surgery, he needs airfare to come for a visit, etc. The payback promises are empty; the money's gone, and so is he.

Fake cheque

Fake cheque play a starring role in lots of different scams: advance fee or prepayment scams; mystery shopping scams; lottery prize scams, and more. Victims get an unsolicited cheque or money order and directions to deposit the money and immediately wire a portion of it back to cover various expenses, like processing fees or taxes. Weeks later, victims learn the checks are counterfeit, but they already wired the money and can't get it back. And they're on the hook to pay the bank back for any money they withdrew.

How to Protect Yourself from Fraud

Only use persons to send money to friends and family. Never send money to someone you have not met in person.

Scammers sometimes encourage people to transfer money. Do not transfer money to anyone who asks you to send them money:

For an emergency situation you haven't confirmed.
For an online purchase.
For anti-virus protection.
To deposit a payment on a rental property.
To claim lottery or prize winnings.
To pay taxes.
For a donation to charity.
For a mystery shopping assignment.
For a job opportunity.
For a credit card or loan fee.
To receive an immigration matter.

If you transfer money, the person you're sending it to gets the money quickly. After the money is paid, Remax may not be able to give you a refund, even if you are the victim of fraud, except under limited circumstances.

If you believe that you are the victim of fraud, contact us at or submit an enquiry.