RCMP Saskatchewan ‘F’ Division's Commercial Crime Section Reminds Consumers - 'Tis the Season for Potential Fraud

December 11, 2009

RCMP Saskatchewan “F” Division’s Commercial Crime Section would like to remind consumers that an increase in opportunities for fraudsters will occur during this festive season. Christmas is the busiest retail season of the year which results in an increase in financial transactions. Keep your holiday shopping joyous by being aware of this and taking a few extra precautions to protect yourself.

In Saskatchewan, the most common type of fraud committed is Mass-Marketing Fraud, which is fraud committed over any type of communication media. The telephone has been the primary method to communicate the initial solicitation of scams, followed by mail and Internet. Mass-Marketing Fraud is an intricate crime. It has become international in nature, global in scope and is a lucrative, low risk business for criminals and organized crime groups.

A notable trend researched by RCMP “F” Division Saskatchewan’s Commercial Crime Section is the spike in internet related complaints, specifically with online advertising boards for buying and selling and social networking sites.

Mass-Marketing Fraud operations are difficult to investigate for several reasons. The internet has no jurisdiction or boundaries and the fraudsters involved are often located in other provinces or countries, and are highly mobile.

The tools and techniques used to solicit potential victims are constantly evolving. New technology, software, and more savvy marketing practices allow for new approaches and variations to traditional Mass-Marketing Fraud scams that challenge consumers to identify scams. Voice Over Internet Protocol (VoIP) and mass e-mail operations are providing fraudsters the ability to increase the scope of their activities at reduced costs.

Fraudsters often remain anonymous and undetected as they have the ability to use multiple false identities, untraceable e-mail accounts, and mask their footprints by using encryption or through third party internet services. Many victims are too embarrassed by falling for the scams to report it to authorities.

Fraudsters show no biases when targeting consumers or businesses. Complaints are received from males and females between the ages of 18 and 100.

Saskatchewan consumers should be aware that Mass-Marketing Fraud includes Payment Card Skimming, Cyber Crime or E-Fraud, and Identity Theft.

Payment Card Skimming involves the unauthorized copying of the electronic data from a person’s debit or credit card’s magnetic strip through a magnetic card strip reader. The electronic data is used to make counterfeit copies of the actual cards, which are then used to steal money from bank accounts or to make purchases. Both debit and credit cards are classed as payment cards.

• Protect your PIN number!
• Many of these frauds happen with the consumer present (restaurants, etc). Be aware of your surroundings and never lose sight of your card.
• Monitor your bank and credit card statements and immediately report any unusual transactions to your financial institution. If they deem it to be fraudulent, report it to the police.

Cyber Crime or E-Fraud concerns our personal information which has become a very valuable commodity to criminals. Personal information may have been compromised, sold, used or stored in a database for future use without anyone’s knowledge. Nobody is safe from this type of crime.

• Always use a legitimate payment service to protect purchases.
• A money wire transfer service can be picked up anywhere in the world, not just the destination you sent it to.
• Do not respond to unsolicited (spam) e-mail.
• Do not click on pop-ups or links contained within an unsolicited e-mail. Instead, go directly to a store’s website by manually typing its address into your web browser.

Identity theft is the taking of the victim’s identity to obtain credit, credit cards from banks and retailers, steal money from the victim’s existing accounts, apply for loans, establish accounts with utility companies, rent an apartment, file bankruptcy or obtain a job using the victim’s name. All the impersonator needs is your social insurance number, your birth date and other identifying information such as your address and phone number.

• Shred all documents that contain personal information before discarding.
• Promptly remove mail from your mailbox after delivery and do not leave pieces of mail lying around.
• Change passwords frequently.
• Never give your Social Insurance Number or any other personal information over the telephone or online unless you initiate the contact.
• Do not carry your Social Insurance Number or card in your wallet.

An interesting point about fraud is that it is a crime in which you decide on whether to participate. Hanging up the phone or not responding to shady mailings or e-mails makes it difficult for the scammer to commit fraud. Fraudsters are very persuasive, using all types of excuses, explanations, and offers to lead you and your money away from common sense.

Education, good judgment, and a healthy dose of skepticism are the best defenses against becoming a victim. Remember, if it looks too good to be true, it probably is!

RCMP Saskatchewan “F” Division’s Commercial Crime Section has offices in Regina and Saskatoon. Their role is to reduce the impact of economic crime on Canadians by maintaining the integrity of our economy through public education, crime prevention, and enforcement. If you feel you have been victimized, please report the incident promptly – you’ll have a better chance of getting your money back and bringing the fraudsters to justice when you file a complaint soon after the crime. For further reference, please visit: www.phonebusters.com or www.rcmp-grc.gc.ca/sk

For further information, please contact:

Cpl. Trevor Ellis
Regina Commercial Crime Section
RCMP Saskatchewan “F” Division
Phone: 306-780-6005