SCAMS AND FRAUDS DOING SOME PRO-ACTIVE POLICING

THE LATEST SCAMS as compiled by the RCMP and O.P.P., and I must give credit where it is sue and thank my buddies for telling me about the *hottest* ones out there at the moment.

Call me old or even old fashioned but I grew up in the era when ' pro active policing ' was part of the norm and I still will if I have the time and opportunity
I'm scheduled to give a talk to the members of my Legions Ladies Auxillary who are mainly seniors so I have made this handout for them to take home and review, feel free to copy and pass it on.
I still believe in the Oath, and I happen to be a member of the group OATHKEEPERS!! No matter how disenchanted I get with the job , DUTY, TRUTH, and HONOR reign supreme , and trust me I am not trying to be super cop, I sstill happen to like the job, what can I say??!!



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900 Scams

CRTC improves safeguards for 1-900 users

The 900 scams are a variation on a prize scheme. The consumer is encouraged, usually through an offer in the mail, to call a 1 900 number in order to find out how much money he or she has won. The implication is that you have won a large prize - cash, cars, boats etc., and your brief phone call will confirm which prize is yours.

The offer usually states the cost of the call per minute - around $4.99 - and the average length of the call, which is usually 7 or 8 minutes. Most of these numbers are linked to a voice response system (a computer), which prevents you from speeding up the call. More often than not, the prize available is minimal (one or two dollars), and you will lose $35.00 for every call you make.

You must take the time to read the offer carefully and understand your odds of winning.

The CRTC advises that some telephone companies offer free services that will block access to all 900/976 numbers.

For example blocking services for residential customers are usually free, but customers who change their mind may have to pay a $10.00 fee to remove the block and reactivate 900/976 services.

Some companies charge a fee to block 900/976 services. Offers vary and customers should check with their telephone provider for details
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Advanced Fee Letter Fraud (419 / West African / Nigerian Letters)

Throughout Canada and the United States letters concerning the "request for urgent business transaction" usually the transfer of millions of dollars, are being sent out to consumers and business' via mail, email and fax transmission. These letters are commonly referred to as Nigerian Letter Scams or West African Fraud Letters.

The scheme begins once a consumer receives a letter. Letters are sent by mail, fax transmission and email, while email transmission being the preferred method of delivery for the letters. PhoneBusters have seen an increase in email delivery. In addition to stressing the urgency and confidentiality of a transaction, these letters will also stress the importance of trust and honesty in order to make the reader believe that there is a validity to the letter. For instance , the writers of these letters will commonly claim to be a Doctor and/or a corporate entity with a major corporation of Nigeria. There will also be some mention of government involvement.

Typically, after receiving a letter a consumer would respond either by phone, fax, or email. the response would be a request for further information on the requirements and procedure for the transaction. Once contact is established, the writer of the letter will normally ask for an up front processing fee and in some cases arrange for a meeting to discuss the transfer of funds. Most letters come with a breakdown of the percentage of money each party involved will receive once the transaction is final. For instance, many letters received at PhoneBusters offer the following breakdown,

30% for the account holder
60% for me and my partners
10% to be used in offsetting taxes and all local & foreign expenses.
PhoneBusters advises consumers not to open unsolicited emails. Spam usually means scam and the message may contain a virus that can damage your computer.

Copies of the letters (regardless of country origin) can be directly forwarded to PhoneBusters via fax at (888) 654-9426 or by email at info@phonebusters.com

Please contact PhoneBusters by phone at (888) 495-8501 if contact has been made with a "Nigerian" representative.

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Advanced Fee Loans

Ads that promise loans generally appear in classified sections of local and national newspapers, magazines and tabloids.

Remember: simply advertising through recognized media outlets does not ensure the legitimacy of the company behind the ad.

Some companies claim they can guarantee you a loan even if you have bad credit or no credit. They usually request an up front fee, which may range from hundreds to thousands of dollars. Once you send your money to these companies, you never get your promised loan and you cannot get your money back. If you cannot get a loan through traditional lending institutions, it is unlikely that you'll get one in response to a classified ad. Ask the loan company to take the amount of their fee off of the total amount of the loan that was promised you. In most jurisdictions, it is illegal for a company to request an up front fee prior to obtaining a loan.
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Bomb Threat Email


Consumers should be alerted to a email that is being sent out by a supposed assassin that has planted a bomb. The sender demands a large sum of money in return for not carrying out the mission.

Should you receive such a solicitation, do not respond to it and delete it.
You can see an example of such an e mail here, but you'll need the adobe acrobat reader, I tried to get it to copy but no luck. :-(
http://www.phonebusters.com/english/documents/Bomb_Threatpdf_000.pdf

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Unfortunately this next scam is geared towards our senior's, the most vulnurable and it really makes me mad!!
Cheque Overpayment Fraud
Fraudulent cheques are used in a variety of scams such as advance fee letter fraud, overpayment and prize pitch to name a few.



Overpayment scams is the type of fraud where the person receiving the cheque is actually owed money for goods sold. The seller receives a counterfeit cashier's cheque personal cheque or corporate cheque from the “purchaser” in an amount in excess of the amount owed; is asked to deposit the cheque and wire the excess funds immediately back to the sender/purchaser or the purchaser's agent or shipper; and, the deposited cashier's cheque is subsequently returned as counterfeit and charged back to the seller's account.



Anyone selling goods should be suspicious of any cheque, especially if it is for more than the agreed selling price. Consider an alternative method of payment, such as an escrow service or online payment service. Talk to your bank about the safest way to receive funds from overseas.

To protect yourself against this sort of scam, never agree to a deal in which the payer wishes to issue an amount for more than the agreed price and expects you to reimburse the balance. The scammers use a variety of excuses to explain the overpayment, but any such excuse should be treated with the utmost suspicion.



In order to avoid overpayment scams, remember the following general words of advice:



Know whom you are dealing with – independently confirm your buyer's name, street address, and telephone number;
Never accept a cheque for more than your selling price;
Never agree to wire back funds to a buyer – a legitimate buyer will not pressure you to do so, and you have limited recourse if there is a problem with a wire transfer;
Resist pressure to “act now.” If the buyer's offer is good now, it should be good when the cheque clears; if you accept payment by cheque, ask for a cheque drawn on a local bank or a bank with a local branch. You can visit that bank branch to determine if the cheque is legitimate; If the buyer wants to use a service you have not heard of, be sure to check it out to be sure it is reliable – check its Web site, call its customer service hotline, and read its terms of agreement and privacy policy. If you do not feel comfortable with the service, do not use it.

And never ever hestitate to call your local police if this should happen to you or a loved one. " To Serve and Protect" and we mean it!! :-)
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This was a new one to me so I called a buddy in "H" Div. who works fraud squad, besides learning about this I had a nice chat too.

Dead Air Calls

"The phone is ringing but no one is there when I answer".

Your phone may have a technical problem but you may also be receiving calls from an automatic dialer that logs the time the phone is answered. A telemarketer uses the information to indicate when a person will be at your number to answer the phone

Sneaky !!!! You can register with your telephone provider to be placed on the DO NOT CALL list but the drawback with this is that the telemarketers that have called you in the past, and companies that you have done legitimate business with CAN CALL!!

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The Grandparent Emergency scam is another being used to target seniors, and recently it had been used to try to target a 60 y.o. woman with LOTS of relatives ( over 150 according to the newspaper I read it in)

Emergency or "Grandparent" Scam

Though the “Emergency Scam” (or sometimes referred to as the “Grandparent Scam”) has been around for years, the RCMP led Canadian Anti-Fraud Centre (PhoneBusters) warns the public to be on after noting a marked increase in the number of complaints in the last two months.

Traditionally operating as a telemarketing scam throughout North America, fraudsters contact potential victims while posing as a family member or friend in urgent need of cash. Often the scenario involves an accident or arrest while travelling abroad, with a request that cash be sent through a money transfer company, such as Western Union or Money Gram.



There are commonly two methods used in an attempt to fulfill this scam.

1) In the typical scenario, a grandparent receives a phone call from con-artist claiming to be one of his or hers grandchildren. The caller goes on to say that they are in some kind of trouble, usually a car accident, returning from a foreign country, or even bail money and need money immediately.



A typical call can go something like this:



Con-artist: Hi, Grandma/Grandpa

Victim: Hi.

Con-artist: Do you know who this is?

Victim: John?

Con-artist: Yeah.



Victims don't verify the story until after the money has been sent as the caller specifically asks that they do not want other relatives to know what has happened by asking “Can you please help me? I'm in jail (or in the hospital / or in some type of financial need). But don't tell Dad. He would kill me if he found out, please sent the money ASAP. I'm scared"



Wanting to help their grandchild, the victim sends money by a money transfer company such as Money Gram or Western Union.



Variations on the scam exist such as an old neighbor, a friend of the family etc. but predominantly the emergency scam is directed toward the Grandparents.

2) In a recent variation of this scam, compromised contact lists from hijacked email accounts are used to send the potential victim an “urgent” email request for money from a friend or relative with whom they have a correspondence. Common themes continue to be hospitalization or imprisonment while away from home. The friend is unaware that their account has been used to send out these requests to everyone on their contact list.

Last year (2008) there were 130 failed attempts reported to the CAFC and 69 successful pleas – amounting to $157,452.16.

By the end of October 2009, there were reported 278 failed attempts and 88 successful pleas – amounting to $317,732.63.

The CAFC estimates that the reports reflect only 5% of the actual number of cases.
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The old Bogus Charity scam, and yes, I hate to admit it but even I was taken by it when I was down in Florida at my winter home. I was sent a letter and what should have tipped me off right away is that it had bulk postage paid on it and not first class rate, and the charity used the bulk rate stamps issued by the US Postal Service, you see a stamp instead of a meter imprint and you think, " okay somebody had to do this by hand, take the time to fold the request, put in a return envelope, and put a stamp on the letter', has to be real. It wasn't. And they had the nerve to use a variation of a legit Florida Law Enforcement orginization, they used Friends of the FL Sheriff's Assn. and there IS a FL Sheriff's Orginization, dumb ass and shame on me!!!

Warning signs

High pressure or threatening telemarketers who want you to contribute immediately.
Someone calls and thanks you for a pledge you don't remember making.
Copycat names. Names that might be misleading or deceiving.
What you can do

If you receive a telephone call, ask for the information to be sent to you in writing. Ask how much of your gift will be used directly for the charity. Ask how much will go toward administrative costs. Legitimate charities have no problem giving you this information.
Remember on an incoming call a person could be misrepresenting a legitimate charity.
Never give out your personal / financial information out over the phone, or at the door. You may wish to make out a cheque payable to the charity. You can mail the cheque later.
Call the charity. Find out if they know about the appeal and have authorized it and what percentage of your donation they will receive from your donation. Perhaps there is a better way to give, where 100% of your donation will reach the charity.
Ask if the charity is registered. In Canada they will be registered with the Canada Revenue Agency and if memory serves me in the US they would have a 501(c) charitable status.
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Identity Theft: Could it Happen to You? Damn Right it can!! It happened to a friend that is a Sgt. with the Chicago PD!!

Maybe you never opened that account, or ordered an additional card, but someone else did....someone who used your name and personal information to commit fraud. When an imposter co-opts your name, your Social Insurance Number (SIN), your credit card number, or some other piece of your personal information for their use - short when someone appropriates your personal information without your knowledge - it's a crime, pure and simple.

Are you a Victim?

The signs can be many, but typical indicators that your identity is being used include:

A creditor informs you that an application for credit was received with your name and address, which you did not apply for.
Telephone calls or letters state that you have been approved or denied by a creditor that you never applied to.
You receive credit card statements or other bills in your name, which you did not apply for.
You no longer receive credit card statements or you notice that not all of your mail is delivered.
A collection agency informs you they are collecting for a defaulted account established with your identity and you never opened the account.
Identity Theft Statement - What is it?

If you have been a victim of identity theft, the Identity Theft Statement helps you notify financial institutions, credit card issuers and other companies that the identity theft occurred, tell them that you did not create the debt or charges, and give them information they need to begin an investigation. Make as many copies of the Statement as you will need to notify all affected companies
It you suspect that your personal information has been hijacked and misappropriated to commit fraud or theft, take action immediately and keep a record of your conversations and correspondence. The following basic actions are appropriate in almost every case.

Start a log of dates, person(s) that you spoke with and exactly what they said.
Contact the fraud departments of each of the three major credit bureaus. Equifax: (866) 828-5961, for lost or stolen identification press 1, if you are a victim of identity theft press 2.
Trans Union: (800) 663-9980 except
Quebec residents (877) 713-3393.
Request that a "Fraud Alert" be placed in your files. At the same time order copies of your credit reports.
Contact the fraud department of creditors for any accounts that have been opened or tampered with fraudulently. This may include credit card companies, phone companies, banks and other lenders.
File a report with your local Police or the Police in the community where the identity theft took place.
Contact PhoneBusters National Call Centre. PhoneBusters is currently central sourcing all pertinent information on Identity Theft to identity trends and patterns, information is also used to assist law enforcement agencies in possible investigations.
Remember: There is no reason to be paranoid; there's just reason to be careful. If someone wants desperately to target you, they can probably get a lot of information about you -- so you just need to minimize the criminal's opportunities to get that information. You can make yourself a harder target and that the best defense. If you are a victim, do not panic, you will not be out any money. The losses will be attributed to the banks and or companies associated with the fraud.

Minimize The Risk

While you probably can't prevent identity theft entirely, you can minimize your risk. Identity theft is on the rise and it can happen to anyone. It can happen to you. By managing your personal information wisely, cautiously and with an awareness of the issue, you can help guard against identity theft.

Tips that will help minimize your risk.

1. Before you reveal any personally identifying information, find out how it will be used and if it will be shared.

2. Pay attention to your billing cycles. Follow up with creditors if your bills don't arrive on time.

3. Guard your mail. Deposit outgoing mail in post office collection boxes or at your local post office. Promptly remove mail from your mailbox after delivery. Ensure mail is forwarded or re-routed if you move or change your mailing address.

4. Utilize passwords on your credit card, bank and phone accounts. Avoid using easily available information like your mother's maiden name, your birth date, the last four digits of your SIN or your phone number.

5. Minimize the identification information and number of cards you carry.

6. Do not give out personal information on the phone, through the mail or over the internet unless you have initiated the contact or know whom you're dealing with.

7. Keep items with personal information in a safe place. An identity thief will pick through your garbage or recycling bins. Be sure to tear or shred receipts, copies of credit applications, insurance forms, physician statements and credit offers you get in the mail.

8. Give your SIN only when absolutely necessary. Ask to use other types of identifiers when possible. And in Canada the only people you MUST give your SIN to is Revenue Canada Taxation and the RCMP if requested, you don't even have to give it to your local PD if you are arrested, mind you you can be held for 72 hrs. without being charged to verify your identity, but on the bright side our Constitution requires that you be brought before a JP, Magistrate, or Judge within 24 hours for a show cause hearing. LOL!!!

9. Don't carry your SIN card; leave it in a secure place.

NB; To my US pals our SIN is the same as your SSI card, and not to be confused with an I9 if any of my LE buddies swam the Rio Grande. Ha Ha.
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Greed brings grief!!!
Inheritance Scheme

A very wealthy stranger has died and you are asked to assist with banking and to share the wealth

The Pitch:

You receive a wordy letter, or email message, from a stranger, seeking your assistance in moving large amounts of money, often millions of dollars, to your bank account. You are promised a very significant percentage for little or no effort on your part, perhaps as high as 20%, for simply providing your bank account details. You may be asked to be a trustee or to stand in as a long lost heir of a deceased's fortune. A web site may even be provided so you can confirm the tragic death of some wealthy individual. The fortune may be said to be in cash in a safety deposit box, evidenced by a Certificate of Deposit. The message may have political overtones or refer to a Diplomat in another country who will broker the transfer of the money, often through some 'back door' arrangement. You may be provided an overseas phone number and asked to indicate whether or not you are interested so that alternative plans can be made should you decide not to participate.

The Facts:

Beware of tragic deaths and persons looking for your assistance in moving large amounts of money and to fulfill the role of trustee or heir. Legitimate estates do not solicit trustees or heirs in this manner and do not promise to carry out the exercise 'through the back door'. If someone promises you 20% of a fortune for doing little else than provide banking details, it is too good to be true, and if it is too good to be true, it probably is not true. This inheritance scheme could end here with the takeover of your bank account and depletion of your funds by a number of fraudulent means. A second phase of the scheme could be invoked, in which you are asked to pay an up front fee in order to collect your so-called inheritance. You do not normally pay money to collect money. this is also known as an advance fee scam.

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Another biggy on the list-- THE LOTTERY SCAM
I usually give a very short investigation when handed a complaint:
Complainant: I was told I won the Lotto and now I have to pay processing fees to obtain the bank transfer.
Me: Did you purchase a ticket on the Multi AFrican Super Lotto mam??
Complainant: No I don't believe so.
Me: No ticket, no winnings. Sorry Mam but your three rhinos in a row won you squat. No ticket purchased= no chance of a win!!

Let's face the facts here folks, you never bought a ticket, you never signed up for a pool group of players, HOPEFULLY you didn't send cash, and especially not by your Credit Card!!!
You can not have won, but do check with relatives or friends that MAY HAVe purchased a ticket for you. If it's Nigerian you don't have a chance in Hell!!
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PHISHING!! And not for the scaly kind in a boat with beer!!

Phishing

The word phishing comes from the analogy that Internet scammers are using email lures to 'fish' for passwords and financial data from the sea of Internet users.


Phishing, also called "brand spoofing" is the creation of email messages and Web pages that are replicas of existing, legitimate sites and businesses. These Web sites and emails are used to trick users into submitting personal, financial, or password data. These emails often ask for information such as credit card numbers, bank account information, social insurance numbers, and passwords that will be used to commit fraud.

The goal of criminals using brand spoofing is to lead consumers to believe that a request for information is coming from a legitimate company. In reality it is a malicious attempt to collect customer information for the purpose of committing fraud.

Tips on how to spot and avoid phishing scams

Protect your computer with anti-virus software, spyware filters, email filters and firewall programs.
Contact the financial institution immediately and report your suspicions.
Do not reply to any email that requests your personal information.
Look for misspelled words.
Always report phishing or 'spoofed' emails.

If you've received one of these suspicious emails, report it to info@phonebusters.com or the financial institution that it appears to be from.

Helpful links

www.visa.ca/phishing

www.rbcroyalbank.com

http://www.cibc.com/ca/legal/privacy-priority.html
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Phone Number Spoofing

"I received a call and my call display indicated a phone number 123-456-7890 or 777-777-7778 (or any other strange combination of numbers)".

This is a phone number that has been programmed into the system so your call display indicates a different number than the originators. Although this does not mean the offer you are receiving is illegal, you should certainly have a "red flag" approach to any offer.

Why would a legitimate company try to obscure their identity?
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The likeable old TV game show The $100,000 Pyramid may have given thee crooks the idea/

NOTE * The operation of a pyramid scheme, and the participation of such sceme is illegal in the Criminal Code of Canada encompassing every region in the country. In the USA I would suspect the same to be true but you could go online or call the US DOJ to see if it is listed in the US CODE* or just call your local DA's Office. Hefty fines and prison time is the most popular form of punishment , if you want to do the crime then by all means get set to do the time!!

Pyramid Schemes

Pyramid schemes are frauds that are based on recruiting an ever-increasing number of investors. The initial promoters (those at the peak of the pyramid) recruit investors who are expected to bring in more investors, who may or may not sell products or distributorships. Recruiting newcomers is more important than selling products.

No new money is created in pyramid schemes. Investors who get in early take their profits from investors who join later. At some point, no new investors can be found and as a result the last investors, who are at the bottom of the pyramid, lose their money. They also face prosecution, as pyramid schemes are illegal.

Before you invest any money in a multi-level company that could be a pyramid, get all the facts about the company, its officers and its products. Get written copies of the company's marketing plan, sales literature, contracts and prospectus (a legal document that gives prospective investors information about the company). Avoid promoters who fail to clearly explain their plans. Have a lawyer or accountant explain anything you do not understand. Find out if there is a demand for the product, or if there are similar products on the market. Remember that the greater the promised return, the greater the risk.

Pyramid schemes are illegal under the Competition Act, and serious charges may be brought against you if you are operating or affiliated with one of these schemes.

Effective January 1, 1993, Industry Canada made amendments to the Competition Act, Section 55. A multi-level sales procedure is a pyramid if:

There is compensation paid for recruiting a new salesperson
There is inventory loading, that is, the recruits must purchase an unreasonable quantity of product
Purchases are required as a condition of entry. (You may, however, be required to pay for a sample kit, but this kit must be at cost.)
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VACATION SCAMS
A police friend of mines wife ALMOST fell for this, I won't give out any names to protect the dumb but I will take this time to say hello to Ami. I mean who wouldn't want a free vacation, ( especially on a cops pay, LOL)
Vacation

If you have received an unsolicited vacation offer please be advised of the following:

Some of the solicitations are valid, some are not.
Some offers are subject to you entering into a Timeshare agreement.
Some offer a high end vacation but reserve the right to change this location subject to availability
Research the company with the Better Business Bureau and other sources from the internet.

If you have not requested information then "buyer beware" should be your thought process. Don't fall for a high pressure sales tactic, if it's a deal, it will be available again. If it is a prize you need not pay for it.

If your vacation call asks you to press a number like "9" or "5" it does not allow them to take over your residential line.
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Staff Sergeant T.D. Hanna
RCMP-GRC

26 June 2010

Feel free to copy as you wish as I place this under a creative commons category and public domain