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Top Ten
SCAMS
Economic Downturn Scams
1
Business Opportunities
Tough economic times often bring out the
bad guys. During a credit crunch, you may
3 Your good friend or family member may
have invited you to attend a presentation
turn to new sources to help with your
involving an investment opportunity. You don’t know
finances. While it may not be called a “loan” in the
anything about the company, and are desperate to hear
marketing, there are small business cash advances which
that it is legit. These investments appear lucrative, but
o er thousands of dollars for business ventures despite
often are more hype than substance. The promoter
your credit rating. These types of opportunities often
convinces investors that they can be part owners of
come with up-front fees, and excessive interest charges.
investment portfolios if they enlist new recruits, maybe
In some cases, it may even be attempts to gain
promising commissions in cash and bullion.
information for identity theft. Before you jump up and
send in that processing fee or security deposit, be
warned that this is likely a scam. You should never have
to pay cash in advance for a loan. QUICK TIP: In reality, this is most likely a pyramid
scheme. The new capital brought on by new
investors is keeping this imaginary investment
QUICK TIP: Never pay money to get money. If it is a afloat. Get the facts. If you do go to an information
legitimate loan or lender, the fee will be added to the session, collect business cards, promotional
total amount owed on the loan as required by BC materials, and ask questions such as, who are the
consumer protection laws. For information about principals of the company? When did the company
disclosure requirements when you are applying for a get started? How much is the start-up cost?
personal loan in BC, contact Business Practices and Gather as much information as possible, before
Consumer Protection Authority (BPCPA) of BC toll agreeing to anything. To report misleading
free at 1.888.564.9963 or visit www.bpcpa.ca. advertising and/or deceptive marketing
practices contact the Competition Bureau at:
www.competitionbureau.gc.ca or 1.800.
348.5358. Go to the BC Securities Commission’s
Home Repair Rip-O s
2
www.investright.org website for information on
how to select an advisor and what to look out for
Home improvements may be on your agenda, when choosing to invest.
but finding a contractor with reasonable costs
and availability may be a challenge. During the spring
thaw, unscrupulous and unqualified people often show
up at homes with o ers to do everything from
landscaping to roofing. Some may o er to pave your
driveway with leftover materials, or even remodel your Bogus Online Ads
home for a low price. These fly-by-night operators come
into communities for a short time and do shoddy work
that often results in having to be redone.
4 Online classifieds can be an e ective way
to hunt for shopping bargains and find
those hard-to-get concert tickets. While those
QUICK TIP: Get the name and address of the com- classified websites o er free access to hundreds of
pany the vendor claims to represent and check it with ads, beware that those listings are rarely vetted prior
the Better Business Bureau and the city-licensing to posting. The seller may not be legitimate, so there
o ce. Get all the details of the work put in writing and may not be concert tickets coming to you in the end.
make sure that you understand everything in the
document. Verify the individual is licensed, bonded,
insured and has registered with WorkSafeBC QUICK TIP: Do not ever wire money to complete
(Workers’ Compensation Board). If youare entering an order you have purchased from a stranger.
into a contract with a contractor who came to your This money will be impossible to recover if the
door to sell their services, find out about your cancel- product you purchased does not arrive. If you are
lation rights. Contact the Business Practices & meeting the person, try to meet in a neutral
Consumer Protection Authority (BPCPA) toll free at location. Avoid purchasing things like gift
1.888.564.9963 or visit www.bpcpa.ca to find out certificates and gift cards from online classifieds.
more about consumer contracts. Remember, price is If the person o ers the gift card for less than the
not everything because in the end it may cost you value, the card may be either stolen or a fake.
more than you planned.
Top Ten
SCAMS Continued...
Cure-All Health Products Prize O ers: You Don’t Have to Pay To
5 Fraudulent “cure-all” health products 7 Play
promise quick cures and easy solutions You may have attended a trade show and
to a variety of problems, from obesity to diabetes entered a draw for a free trip, and several days later you
and cancer. Any product that claims to be a miracle get a call you have won. Or, you received a letter that
cure may be a fraud that could cheat you out of time, states that you have won an international lottery or
money and most importantly, your health. fabulous prize. The common trait to both these ‘winnings’
is that thing is that you must send them money, be
available for a home delivery or a special presentation, or
QUICK TIP: Beware of ads that promise too provide them with some very personal information such
much. Think twice before buying a product that as your bank account or credit card number.
claims it can do it all. Steer clear of a product that
claims to be a “scientific break through.” If the
first or only place you learn about a new QUICK TIP: If there’s a catch or condition, you
treatment is through an advertisement on the haven’t won. If it sounds too good to be true, or
Internet, be suspicious. Consult your health care you’re not sure, check the o er out further. Contact
practitioner before trying any new treatment. For your BBB at 604.682.2711 or 1.888.803.1222. If you
further information on health fraud, go to the think it's fraud, call the Canadian Anti-Fraud Call
Competition Bureau’s website: Centre, PhoneBusters, at 1.888.495.8501. To be
www.competitionbureau.gc.ca/healthfraud removed from telemarketing calling lists contact the
Canadian Do Not Call List: 1.866.580.DNCL or go to:
www.lnnte-dncl.gc.ca.
Guaranteed Vehicle Brokers
6 After listing your used vehicle for sale in Bogus Cheques & Overpayment
the classifieds, you receive a phone call
from a company advising you that they have a
purchaser for your vehicle. The caller asks for a fee
8 Schemes
guaranteeing that the purchaser will pay more than In this scam, fraudsters typically target
the vehicle is advertised for. They promise that if you people selling a product through classified ads, online
list your vehicle on their classified site and the vehicle bulletin boards or people looking for work on
is not sold within 90 days, you will get your money employment postings. The scammer sends a cheque for
back. Unfortunately, your vehicle is not sold, the the listed product or service that is more than the
guarantee is not honoured, you can’t reach the negotiated price. The original cheque is usually stolen or
company and you are out of pocket the funds you is a fake, and by the time the victim has cashed and
have given this company. returned the excess funds, the scammer has disappeared
with the money and the product.
QUICK TIP: The BBB advises consumers to be In reality, the company sends you information on how
wary of brokers who “guarantee” auto sales with you can lower your interest rates by contacting your
prearranged buyers. Ask detailed questions such credit card companies directly and negotiating. In some
as: is the buyer specifically interested in your situations, the consumer is not even eligible or able to
vehicle, rather than a range of similar vehicles? use these services.
Always understand telemarketing o ers and ask
for additional documentation. Certain telemar-
keters must be licensed in BC. You can check to QUICK TIP: Never accept payment for more than
see if the telemarketing company is licensed your selling price. Never agree to refund the excess
through the Business Practices and Consumer to a buyer or wire-transfer money to another
Protection Authority of BC at www.bpcpa.ca or location. A legitimate buyer or employer would never
1.888.564.9963. ask you to do so. Consider using an independent
online payment service. Speak to your credit card
service provider to determine what avenues it has to
guarantee payment processing.
Top Ten
SCAMS Continued...
Eco Cons: Are You Buying It?
9 There are a number of products on
supermarket shelves that are “green”,
“eco-friendly”, “all natural” or “environmentally
safe.” A study by TerraChoice Environmental
Marketing found evidence of Greenwashing --
making false or misleading green marketing claims – For more information
in 99% of products checked.
Better Business Bureau
QUICK TIP: Look for EcoLogo or Green Seal of Mainland B.C.
symbols that show third party testing of Suite 404, 788 Beatty Street
products. Be skeptical of marketing promotions Vancouver, BC V6B 2M1
that o er to support environmental processes Tel. 604 682 2711
Toll Free. 1 888 803 1222
without proof the processes are subscribed to
Email: inquiries@mbc.bbb.org
and are e ective. Canada has guidelines for www.mbc.bbb.org
green advertising that can be visited at the
Competition Bureau website: Better Business Bureau
www.competitionbureau.gc.ca of Vancouver Island
#220-1175 Cook Street
Victoria, BC, V8V 4A1
Tel. 250 386 6348
Spoofing Attacks
10
Toll Free. 1 877 826 4222
Email: info@vi.bbb.org
You may receive an email that looks www.vi.bbb.org
like it is from an organization you
know, or visit a webpage that looks like it is from
your bank. When a person or program successfully
Business Practices & Consumer
masquerades as another by falsifying data, this is Protection Authority of BC
spoofing. Spoofing attacks have grown and PO Box 9244
become more sophisticated and have illegally used Victoria, BC V8W 9J2
organizations like the Better Business Bureau and Toll Free in BC. 1 888 564 9963
the Canada Revenue Agency to trick consumers Email. info@bpcpa.ca
into sharing their information. The key common www.bpcpa.ca
tactic is to get you to either fill in personal
information or download malicious software on to
your computer to compromise your security and
Competition Bureau Canada
put your identity and money at risk. 2000-300 West Georgia St
Vancouver, BC V6B 6E1
Toll Free. 1 800 348 5358
QUICK TIP: If you receive an email from a www.competitionbureau.gc.ca
person or organization that instructs you to
complete an online form, or download a
program, stop. Organizations do not usually BC Crime Prevention Association
correspond only by email, especially without #275 - 6450 Roberts Street
prior contact. Call to check the legitimacy of Burnaby, BC V5G 4E1
the email. Do not click the link or respond to the Tel. 604 291 9959
email to play along, because you may expose Toll Free. 1 888 405 2288
your computer and your identity at risk. Delete Email: info@bccpa.org
www.bccpa.org
the email. If you fear your computer has been
compromised, contact a computer technician
to examine your system. Make sure to check
your credit report annually with Equifax
(1.800.465.7166 or www.equifax.ca) and Trans
Union Canada (1.866.525.0262 or www.tuc.ca.)
For more information about identity theft, go to
the BC Crime Prevention Association website:
www.bccpa.org.
