Fraud Aware

Advanced Fees / Prepayment: You are asked to send an upfront payment for a product or service.

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 providing loans. Consumers pay for the fees, but the loans never come through. Scammers are long gone and they may change the name of their “businesses” periodically to avoid law enforcement.
Another variation of the scam promises victims of investments or inheritance gifts after receiving a processing fee. The basis remains: Victims pay money to someone in anticipation of receiving something of greater value and then receive little or nothing in return.

Mystery Shopping: You are contacted for an employment opportunity which involves sending funds using a money transfer service and evaluating the service.

Mystery shopping scams are popular with criminals who target employment websites. The ploy is simple: Scammers send victims a cheque and tell them to use the funds to “evaluate” a remittance company’s money transfer service. Victims wire the money only to find out later that the cheque bounce and they’re responsible for paying the bank back.

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

With overpayment scams, fraudsters play the role of “buyers” and target sellers selling a service or product. The “buyer” sends the seller a legitimate-looking cheque, usually drawn on a well-known bank, for an amount higher than the agreed-upon price. They contact the seller with an explanation for this overpayment and instructs the seller to deposit the cheque and wire back the excess funds. Weeks later, the victim learns the cheque is fake but is still liable to pay the bank back for any money withdrawn.

Employment: You are asked to send money for a job offer that you have accepted.

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 ‘job’ and out of money. They generally follow one of three patterns:

1. Scammers pose as a new ‘employer’ and send victims a cheque to cover up-front expenses, like supplies. Victims deposit the cheque, buy the necessary supplies and wire any remaining funds back to the scammer. Weeks later, they find out the cheque is fake and they are liable for the entire amount.
2. Scammers pose as ‘recruiters’ pitching offers of guaranteed employment or as ‘employers’ extending job offers on the condition that victims pay up front for things like credit checks or application and/or recruitment fees. Victims pay for the fees, but job offers never materialise.
3. Scammers pose as ‘company’ representatives and seek sensitive personal and/or financial information from victims under the guise of doing credit or background checks. Victims will then be targeted for identity theft.

Lottery / Prize: You receive a notification that you have won a lottery/sweepstake and need to send fees to claim the prize.

Lottery or prize scams follow two similar patterns:

1. A victim gets 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 gains their trust and explains the procedure to collect the winnings. Victims have to send a small sum of money to pay for processing fees or taxes before the winnings are released to them. Following these instructions, victims immediately wire the money, but never get their “winnings.”
2. Victims get an unsolicited cheque or money order together with instructions to deposit the money, and immediately wire a portion of it back to cover processing fees or taxes. Weeks later, victims learn that the cheques are counterfeit, but have already wired the money to cover the “taxes” and are unable to get it back. They are also liable to pay their banks back for any money they withdrew.

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

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:

1. Renters are looking for a house or an apartment to lease and get scammed by an “owner”. Victims come across a place in a great location, 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.
2. Owners are renting out their house or apartment and get scammed by a “renter.” “Renters” contact victims, generally by email, and express interest in renting the house or apartment. Scammers send a cheque for the deposit but then cancel the deal. Victims wire the money back only to find out the cheque was fake.

Emergency / Grandparents: You are asked to send money to a friend or family member for an emergency

Emergency scams play off of peoples’ emotions and strong desire to help others in need. Scammers impersonate their victims and make up an urgent situation—I’ve been arrested, I’ve been mugged, I’m in the hospital—and target friends and family with urgent pleas for help, and money.

Emergency scams also come in different variations.

1. Grandparent Scam: Scammers contact the elderly claiming to be their grandchild, urgently in need for money.
2. Social Networking Scam: Scammers hack into social networking profiles or replicate a similar profile using the information from the actual profiles and target friends with frantic requests for money, claiming injury, arrest, etc.; they do the same by hacking email profiles.

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

In the internet purchase scam, criminals prey on victims who bid on items using an online auction website or service:

1. Victims win the bid, which is likely a sham or set up, and are told that 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. Victims are told that this protects their money until the goods or services are received. The “seller” then creates a fake ID in the fictitious name and retrieves the funds from the auction service provider. Victims will end up without the goods and are unable to retrieve the money transferred.
2. The other variation is when the original auction is legitimate, but the victims don’t win the bid. They’re contacted later on 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 victim will not receive the goods.

Relationship: You meet someone online, develop a relationship with them and you are asked to send money to them.

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 scammer will make up reasons for money from the “partner”, such as medical, emergencies, flight tickets to the victim or business needs etc. Scammers promise to repay the monies once they meet or within a certain period, but will disappear with the monies.

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

Fake cheques 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 instructions 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 that the cheques are counterfeit, but they have already wired the money and are unable to get it back. They will be liable to pay their banks back for any money they withdrew.