Frauds and Scams

One of the most requested workshop we get from senior groups is on Frauds and Scams. We talk about the top ten scams in Canada. The top ten scams in Canada in 2017 were:

1.          Romance scam ($17 million lost)

2.          Wire Fraud — "Spearphishing:'' $13 million lost

3.          Identity fraud ($11 million lost)

4.          Online purchase scams ($8.6 million lost)

5.          Binary options scam ($7.5 million lost)

6.          Employment scam ($5.1 million lost)

7.          Canada revenue agency ($4.3 million lost)

8.          Fake lottery/contest winnings ($3 million lost)

9.          Advance fee loans ($1.1 million lost)

10.    Fake online endorsement and sponsored content

I thought it might be interesting to see what scams are being used by crooks in the United States that will soon come to Canada. So, over the next two posts, I will highlight some of the scams and frauds making the rounds in the US. The information about the scams in the US is from Senior Planet.

Scams are repeated because they work. The ones that work are often driven by financial life moments such as taxes, holiday shopping, and utility scams. Identity thieves and scammers often try new twists on old scams that worked in the past. So far this year, a number of different and new scams have made the news, listed here in alphabetical order, not by ranking.

Airbnb Scam

This scam involving users of the popular AirBnB site that lets travelers rent an apartment or house. The scam starts with an impostor home or apartment owner directing the renter towards a fraudulent or “spoof” website to finalize payment for the rental. Those fake sites result in lost money and no place to stay because the rental property being discussed is usually not even available. In fact, the real owners are most likely unaware that their property is being spoofed by scammers.

“Can You Hear Me” and “Yes” Calls

This scam happens when you answer the phone and the person on the other line asks: “Can you hear me?” and you respond, “Yes.” Your voice is being recorded to obtain a voice signature for scammers authorize fraudulent charges over the phone. You can visit the FCC website to block any unwanted calls. The BBB Scam Tracker received more than 10,000 reports on the ‘Can you hear me?’ scam, but none of the reports resulted in an actual loss of money.

Car Scams

The FBI shared information on a growing scam where crooks are targeting those looking to buy cars and other vehicles online. The FBI has received 26,967 complaints with losses totaling $54,032,396 since tracking this issue from May 2014 through December 2017. This car scam starts with a criminal posting an online advertisement with a low price to get the attention of a buyer, including photos of the vehicle and contact information. When a buyer reaches out, the “seller” sends more photos and what appears as a logical reason why the price is discounted and indicates a need to sell.

The criminal then instructs you to purchase prepaid gift cards in the amount of the sale and share the prepaid codes. You’re usually told you’ll receive the vehicle in a couple days. Then you don’t hear back from them again you’re left without your money and still in need of a car.