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Telephone and internet scams

Telephone and internet scams are used by criminals to trick people into giving them money or personal information like credit card and bank account numbers. They use fake lotteries, get-rich-quick opportunities, miracle health cures, and many other types of stories. New scams are being created all the time.

This resource will:

• help you recognize common scams,
• give you tips on how to better protect yourself, and
• tell you what you can do if it happens to you.

What are some common telephone and internet scams?

Phishing

Someone might pretend to be the government, your bank, your employer, someone that you owe money to, or even an old friend. Scammers use phone calls, emails, or fake websites to trick you into sharing your personal information. These tricks are sometimes called “phishing”.

The scammers then use your information to apply for credit cards, bank loans, and other kinds of credit. They can take money from your bank accounts and shop with your credit cards. This is sometimes called “identity theft”.

If you receive telephone calls from collection agencies or creditors for accounts that you do not have or purchases that you didn’t make, you might be a victim of identity theft. Also, your bank or other financial statements might show withdrawals, transactions, or transfers that you didn’t make.

If you find that someone has used your identity, there are a few things you should do as soon as possible.

• Report the identity theft to the police.
• Contact the financial institutions, credit card issuers, or companies that are involved.
• Report the identity theft to the Canadian Anti-Fraud Centre (CAFC).
• Cancel any missing identification.
• Contact the credit reporting agencies, Equifax and TransUnion.

There is contact information for these organizations in “What can I do if I am a victim of a scam?“. You can also read CLEO’s resource, Identity theft.

Telemarketing scams

Some scammers pretend to be telemarketers calling to offer you deals on products and services. They will ask you for your bank account or credit card information to pay for them.

They can then use your information to take all the money out of your bank account or charge your credit card up to its limit. Then they might send you a low quality item that is not what they described, or they might send nothing at all.

For information about your rights when shopping by phone, mail or internet, see CLEO’s resource, Online, telephone, and mail-order shopping. To find out how to order a copy or view it online, see the back cover of this booklet.

To avoid most telemarketing calls in the future, register on the National Do Not Call List. To register, visit www.lnnte-dncl.gc.ca or call 1-866-580-3625.

Prizes and lottery scams

In this scam, you get a phone call or email saying that you have won a prize, such as cash, a car, or a vacation. The scammer will tell you that to collect your prize you must pay a small fee, and they might ask for your credit card information. You will not receive the prize that you were promised but now the scammer can make charges on your credit card. If you send them money, you will not get it back.

“CRA” scam

This is a very common scam, especially around tax time. Someone will call or email you pretending to be from the Canada Revenue Agency (CRA). They may tell you that you owe taxes or that you are in trouble with the tax department and that you must send payment or give them your credit card or banking information. Sometimes they send you to a fake website that might look exactly like the real CRA website.

It is best to just hang up on the call or delete these emails. The real CRA will never phone, email, or text you asking for information. If you are concerned about your tax account, you can call the CRA at 1-800-959-8281. You can also visit the CRA website at www.canada.ca/en/revenue-agency to set up an online tax account.

1-900 Numbers

1-900 telephone numbers are often used for services like dating hotlines, weather updates, contests, and horoscopes. 1-900 numbers might sound like they are toll-free but you are actually charged very high rates when you call. Other numbers like this include 1-976 and 1-809.

Real toll-free numbers that you can call for no cost use area codes 1-800, 1-888, and 1-887. Some telephone companies offer a call-blocking service that stops 1-900 calls.

Emergency or “grandparent” scam

In this type of scam, a caller or email sender pretends to be a close friend or a relative in trouble. They might ask you to send money because of an accident, an injury, an arrest, or because they have been robbed. Like other scams, this is likely just a way for scammers to get access to your bank account. They often target seniors but anyone of any age can be the victim of this kind of scam.

Cheque overpayment scams

This scam usually happens when you are selling something online or in the newspaper. A buyer will send a cheque to pay for the item, but the cheque will be for a larger amount than you asked for. The scammer will tell you that they made a mistake, and ask you to deposit the cheque to your account and send the extra money back to them. Later the bank will tell you that the cheque is fake. You usually cannot get back the money or the items that you’ve sent to the scammer.

Advance fee fraud

In this scam, you receive an email or a letter from a person asking for your help to transfer a large amount of money. They offer to share the money with you if you agree to give them your bank account information to help with the transfer. Sometimes they will ask you to pay fees and taxes before you can receive your share. But you will never receive any money from them. And once the scammers have your bank account information, they can take any money in your account.

Another version of advance fee fraud involves companies that promise you a loan or credit card, even if you have no job or bad credit. They tell you that you have to pay a fee before you can get the money or the card. But once you pay the fee, you never get the loan and the scammers disappear with your money.

How can I protect myself against these scams?

Your best protection is to be careful when you receive phone calls and emails from anyone that you do not know personally. Do not give personal information to anyone you are not sure about.

Be suspicious of any calls or emails that ask for your address, Social Insurance Number, bank account, or credit card numbers. Banks and government agencies will not call or email you to ask for this information.

A fake email or website can look like it is from a real bank or other institution. If you are not sure, do not click on any links or give any information. Instead, call or visit your bank to ask about it.

Get proof that the call or email asking for help is really from your relative or friend. Ask the caller or sender a question that only your relative or friend would be able to answer correctly.

Even if the call seems real, you can suggest other ways to help where you don’t have to send money or give personal information. For example, you can offer to buy a plane or train ticket in their name. Or you can offer to get help by calling the police in the city where the caller claims to be.

If a call or an email sounds or looks suspicious, just hang up the telephone or delete the email.

What can I do if I am a victim of a scam?

If you have given money or personal information to a scammer, there are a few things you should do as soon as possible.

Report the scam to the police

Ask for a copy of the police report. Give copies of it to your financial institutions, credit card issuers, the credit reporting agencies, and any other companies that you speak to about the scam.

Contact the financial institutions, credit card issuers, or companies that are involved

Tell them about the scam. You might need to change your account numbers and your PINs, and get new debit and credit cards. Ask the staff at your bank what else you can do to stop the scammers from using your bank accounts and credit cards.

Even if the criminals cannot be found, you might have some protection if they have taken money from your bank account or made charges to your credit card. But your bank will want to be sure that you are actually a victim and that you are not working with the criminals.

When you report the identity theft to as many agencies as possible, you show that you are serious about finding the thieves.

Contact Equifax and TransUnion

Equifax and TransUnion are the two main credit reporting agencies in Canada. Ask each of them for a copy of your credit report. They must send you a free copy of your report in the mail if you ask them to.

Review your credit reports to see if the scammer opened any accounts or incurred debt in your name.

You can contact Equifax at 1-800-465-7166 or www.equifax.ca.

You can contact TransUnion at 1-800-663-9980 or www.transunion.ca.

Report the scam to government agencies

The Canadian Anti-Fraud Centre gathers information about identity theft and gives advice and help to victims. For more information, call 1-888-495-8501 or visit www.antifraudcentre-centreantifraude.ca.

The Competition Bureau handles complaints about some types of scams and unfair or deceptive marketing practices. For more information, call 1-800-348-5358 or visit www.competitionbureau.gc.ca.

You can also contact the Ministry of Government and Consumer Services so that other people can be warned about the scam. Call 416-326-8800 or toll-free at 1-800-889-9768. You can also visit www.ontario.ca/consumer.

For more help

You may need legal help for some situations. Here are some places to try.

Community legal clinics

Some community legal clinics or law school clinics can help you with consumer law problems. You must be financially eligible to receive these services. If your clinic cannot help, they might be able to refer you to other services in your community.

To find the legal clinic that serves your area, visit the Legal Aid Ontario (LAO) website at www.legalaid.on.ca or call Legal Aid Ontario at:

Toll-free: 1-800-668-8258

Toronto area: 416-979-1446

Toll-free TTY: 1-866-641-8867

Toronto area TTY: 416-598-8867

Law Society Referral Service

The Law Society of Ontario has a directory of all lawyers and paralegals licensed in Ontario. The Law Society Referral Service can give you the name of a lawyer or paralegal in your area who can give you a free consultation for up to 30 minutes.

Visit the Law Society website at www.lso.ca and click on “Find a Lawyer or Paralegal” or call them at:

Toll-free: 1-800-268-8326

Toronto area: 416-947-3330

JusticeNet

JusticeNet is a nonprofit service that helps people who do not qualify for legal aid to find legal help. JusticeNet has a directory of lawyers, paralegals, and mediators who offer help at reduced rates to financially eligible people. Visit their website at www.justicenet.ca or contact them at:

Toll-free: 1-866-919-3219

Toronto area: 416-479-0551

Email: support@justicenet.ca

Pro Bono Ontario

If you are suing or being sued in court, you may be able to get help from Pro Bono Ontario. This free program offers information about court rules and help with completing court forms. If you qualify, you may also be able to get brief legal advice or, if your case is in Toronto or Ottawa, a lawyer to represent you in court. For more information call 1-855-255-7256 or visit their website at www.probonoontario.org.

Other information

CLEO has a series of consumer law information resources available online and in print.

CLEO’s Steps to Justice website has step-by-step information about common legal problems, including debt and consumer rights. Visit www.stepstojustice.ca.