Online scammers- Recognize it, report it, and help stop it.

By Melanie Aitken, Commissioner of Competition

The development of the Internet has been among the most important technological innovations of the past twenty years. Millions of Canadians use the Web daily to get their news and to connect with their communities. But it has also provided fraudsters with new ways to defraud us with new online scams and online versions of schemes that have been around in other forms for decades.

Every year in March, over 100 private and public sector organizations support Fraud Prevention Month to remind Canadians to be on the alert and report incidents of fraud. The members of the Fraud Prevention Forum carry out this important work because, despite the diligent efforts of law enforcement, scammers continue to prey on Canadian citizens, robbing individuals and companies of their hard-earned dollars.

This year, the organization I head, the Competition Bureau, and its Fraud Prevention Forum partners, are raising awareness of Internet fraud because it has become a primary vehicle for fraudsters. Online fraud now costs the economy millions of dollars each year and puts everyone at risk regardless of age, education, income or where we live. Indeed, the Canadian Anti-Fraud Centre (formerly PhoneBusters) has detected a dramatic rise in online scams in recent years – a 77 per cent leap since 2005.

While Internet fraud is fairly new and provides us with certain novel challenges, our fight remains the same and we need your help. It is important that we all learn how to recognize the signs of fraud, protect ourselves, and know how and where to report it. With your assistance, law enforcement agencies and my colleagues at the Competition Bureau will be able to crackdown on fraud even more effectively.

Scammers routinely use online services to make offers to prospective victims or to draw individuals and businesses into fraudulent transactions. Online scams are designed to appear that they come from familiar and trusted places. The following scams are among those we are highlighting this year:
• Job scams that often promise high income for little effort, or ask you to send a cheque in order to pay for materials or information that allow you to work from home.
• Health claim scams often involve bogus products that make “breakthrough” health claims on the Internet or promise to cure illnesses, such as cancer or the H1N1 virus.
• Business or investment opportunities can appear to be lucrative but may, in reality, be illegal pyramid schemes.
• Supply and merchandise scams may involve buying products over the Internet–for business or consumer use–that are never sent, or receiving a bill for merchandise that was never ordered or received. For businesses, toner cartridge, paper and business directory scams are particularly common.
• Identity theft happens when someone tricks you into providing personal information to commit fraud.

Some of the following tips can help you avoid scams and better protect yourself online:
• Never provide details about your bank accounts or credit cards by e-mail, over the phone or by fax, before doing background checks.
• Always seek independent advice if an offer involves time pressure, providing personal information, or sending money, particularly if it is for a job or an investment opportunity. If the offer is legitimate, they can wait a day or two for a response.
• If you receive a cheque and are asked to return an “overpayment” portion using a money transfer company…Beware! The cheque might be counterfeit.

Catching these criminals is critical, and that’s why Fraud Prevention Forum members urge you to recognize it, report it, and help stop it.

For more tips, or to report a scam, contact the Competition Bureau at www.competitionbureau.gc.ca/fraud or call 1-800-348-5358, or the Canadian Anti-Fraud Centre at www.antifraudcentre.ca or call 1-888-495-8501.