Toolkit for March Fraud Prevention Month 2017

Private Sector - Businesses

FRAUD…Recognize It…Reject It…Report It.

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Table of Contents

Introduction --- 3

RCMP Videos --- 4

OPP Fraud Prevention Videos --- 4

Competition Bureau Fraud Prevention Videos --- 4

CAFC Logo --- 4

Calendar of Events - Facebook and Twitter --- 5

Statistics --- 6

Scams Targeting Businesses --- 7

• Wire Frauds --- 7

• Supplier Swindle --- 8

• Phishing Scam --- 8

• Sale of Merchandise Scam --- 9

• Directory Scam --- 10

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Introduction

In preparation for March Fraud Prevention Month, the Canadian Anti-Fraud Centre (CAFC) has

compiled a toolkit specifically designed for use by private sector partners to further raise

public awareness and to prevent Canadians from becoming victims of fraud. We encourage

all partners to use the CAFC logo, contact points and resource materials in this toolkit on their

website, in print and on their social media platforms. The CAFC will be actively posting daily

on Facebook and Twitter (#FPM2017, #MPF2017) and participating in the fraud chats: Use the

following hashtag – #fraudchat – to join.

The CAFC is Canada’s central repository for data, intelligence and resource material as it

relates to mass marketing fraud. Victims who report to the CAFC are also encouraged to

report directly to their local police.

Consumers and businesses can report directly to the CAFC by calling toll free 1-888-495-8501

or online through the CAFC Online Fraud Reporting System (FRS).

English - http://www.antifraudcentre-centreantifraude.ca/reportincident-

signalerincident/index-eng.htm

French - http://www.antifraudcentre-centreantifraude.ca/reportincident-

signalerincident/index-fra.htm

Comments, questions or feedback on Fraud Prevention Month is always welcomed.

Thank you,

The CAFC Fraud Prevention Team

Follow us on Twitter - @canantifraud

Like us on Facebook – Canadian Anti Fraud Centre

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This Toolkit Includes:

1) RCMP Videos

- Face of Fraud Commercial (YouTube) -

https://www.youtube.com/watch?v=0rlWUcc57dM

- A Cry from the Heart from Victims, Romance Scam (YouTube) -

https://www.youtube.com/watch?v=blyhHl8rc7g – French video with English

subtitles

- Telemarketing Fraud: The Seamy Side (YouTube) -

https://www.youtube.com/watch?v=t7bhQJkelEg - French video with English

subtitles

2) OPP Fraud Prevention Videos

These videos feature CAFC staff and volunteers and highlight a number of well-known

scams. Videos are available in both official languages.

- English (YouTube)

https://www.youtube.com/user/OPPCorpComm/search?query=scam

- French (YouTube)

https://www.youtube.com/user/OPPCorpCommfr/search?query=scam

3) Competition Bureau of Canada Fraud Prevention Videos

The videos are available on small business, job and employment, Internet and Mobile

Phone Scams. Videos are available in both official languages.

- English - http://www.competitionbureau.gc.ca/eic/site/cb-

bc.nsf/eng/03809.html#tab2

- French - http://www.bureaudelaconcurrence.gc.ca/eic/site/cb-

bc.nsf/fra/03809.html#tab2

4) CAFC Logo

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5) Calendar of Events - Facebook and Twitter “Scam of the Day”

Every day in March, the CAFC will highlight a particular scam on both

Facebook and Twitter that will link directly to the CAFC website

(information is available in both official languages). See the calendar of

events below. Scams involving Businesses will be highlighted in week 4.

March 2017

Sun Mon Tue Wed Thu Fri Sat

1 Facebook & Twitter Continuity

2 Facebook & Twitter Investments

3 Facebook & Twitter Card Not Present

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5 6 Facebook & Twitter Prize

Bulletin

What to do if

you’re a victim

7 Facebook & Twitter Emergency

8 Facebook & Twitter

Romance

9 Facebook & Twitter Service

10 Facebook & Twitter Timeshare

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12 13 Facebook & Twitter Counterfeit

Merchandise

Bulletin

Tax Scams

14 Facebook & Twitter Job

15 Facebook & Twitter Loan

16 Facebook & Twitter Rental

17 Facebook & Twitter Merchandise

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19 20 Facebook & Twitter Wire Fraud

Bulletin

Travel Scams

21 Facebook & Twitter Phishing

22 Facebook & Twitter Sale of

Merchandise

23 Facebook & Twitter Extortion

24 Facebook & Twitter Directory

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26 27 Facebook & Twitter Caller ID Spoofing

Bulletin

ID Fraud

28 Facebook & Twitter Vacation

29 Facebook & Twitter Immigration

30 Facebook & Twitter Tax

31 Facebook & Twitter

#Whatthefraud

Follow us on Twitter - @canantifraud

Like us on Facebook – Canadian Anti Fraud Centre

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6) Statistics

In 2016, the CAFC received 77,348 mass marketing fraud complaints with a

total reported dollar loss of $99,198,187.82. The top 10 reported scams

affecting businesses during this time are listed below.

Top 10 business scams based on complaints in 2016:

Top 10 business scams based on dollar loss in 2016:

Complaint Type Complaints Victims Dollar Loss

Wire Fraud 738 128 $12,431,997.25

Romance 162 145 $4,401,212.64

Job 572 280 $2,825,322.15

Merchandise 416 345 $1,717,769.13

Investments 64 40 $1,687,811.61

Sale of Merchandise 486 278 $1,644,123.36

Prize 361 85 $1,188,604.36

Extortion 1,292 365 $1,182,095.10

Service 416 213 $879,319.38

Identity Theft 193 169 $636,995.33

� It’s believed that fewer than 5% of victims file a report with the CAFC regarding Mass

Marketing Fraud.

Complaint Type Complaints Victims Dollar Loss

Extortion 1,292 365 $1,182,095.10

Wire Fraud 738 128 $12,431,997.25

Job 572 280 $2,825,322.15

Sale of Merchandise 486 278 $1,644,123.36

Service 416 213 $879,318.38

Merchandise 416 345 $1,717,769.13

Phishing 386 90 $379,826.71

Directory 264 28 $20,999.59

Inheritance 221 12 $191,061.83

Other 197 69 $331,154.01

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7) Fraud Warnings / Bulletins

Below are a few common frauds targeting businesses, which will be

highlighted during week 4 of Fraud Prevention Month (March 20th – 24th).

Theme 4 - Monday, March 20th, 2017 - Scams Targeting Businesses

Bulletin: Travel Scams

Wire Frauds

One type of wire fraud currently targeting businesses is the Business Executive Scam (BES),

also known as the Business Email Compromise. The potential victim receives an email that

appears to come from an executive in their company that has the authority to request wire

transfer. In some cases the fraudsters create email addresses that mimic that of the CEO or

CFO. In other cases the fraudsters have compromised and subsequently used the email

account belonging to the CEO or CFO. The fraud email message will be sent to an employee

that has authorization to conduct wire transfers. Often the email will indicate that the

“executive” is working off-site and has identified an outstanding payment that needs to be

made as soon as possible. The “executive” instructs the payment to be made and provides a

name and a bank account where the funds, generally a large dollar amount, are to be sent.

Losses are typically in the excess of $100,000.

Another similar fraud involves fraudsters targeting the financial industry. For instance, an

investment brokers receive fraudulent email requests from who they believe to be an existing

client. Unbeknownst to them, the client’s email has been compromised. A request is sent by

the fraudster to the financial institution/investment broker to have money transferred from

“their” bank account usually to a foreign bank account.

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Warning Signs – How to Protect Yourself

• Beware of irregular email requests for urgent fund

transfers.

• Prior to sending any funds or product, make contact

with existing clients in person or by telephone to

confirm that the request is legitimate.

• Watch for spelling and formatting errors and be wary of

clicking on any attachments as they can contain viruses

and spyware.

The Supplier Swindle

Canadian businesses are losing significant amounts of money to fraudsters who claim to

represent their regular supplier. The scam is targeting businesses that buy supplies from

foreign wholesalers (e.g. China) and usually involves a spoofed or compromised email

informing the buyers of a change in payment arrangements. “Email spoofing refers to an email

that appears to originate from one source when it was actually sent from another.” The email

notice provides new banking details and requests that future payments be made to this “new”

account.

Warning Signs - How to Protect Yourself

• Beware of emails presenting new payment details.

• Prior to sending any funds or product, make contact with existing clients in person or by

telephone to confirm that the request is legitimate.

• Watch for spelling and formatting errors and be wary of clicking on any attachments as

they can contain viruses and spyware.

Phishing Scam

Traditional phishing emails are designed

to trick the victim into thinking they are

dealing with a reputable company. Emails

are sent with the intentions of capturing

personal information and financial

information, which can be used for

identity theft and fraud. Common trends

currently involve emails sent

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impersonating PayPal, the Canada Revenue Agency, eBay, Apple and various Financial

Institutions. Victims that respond to these emails are encouraged to take the appropriate

actions to protect their identity – contacting Equifax, TransUnion, Financial Institutions and

local Police.

Warning Signs - How to Protect Yourself

• Beware of unsolicited emails from individuals or organizations asking you for your

personal or financial information.

• Beware of unsolicited emails that are prompting you to click on an attachment or link.

• Watch for spelling and formatting errors.

• Check the embedded hyperlink in the suspicious email by hovering your mouse over the

link to verity the address.

• Do not click on any attachments; they can contain viruses and spyware.

Sale of Merchandise Scam

Whether you are a business or an individual when selling merchandise online you need to be

aware that not all offers received are good and honest ones. When it comes to this type of

scam the seller receives a reply either by email or text message from a scammer looking to

purchase their product. The scammer will then proceed with transferring fake payment(s) to

the sellers account, paying with stolen credit cards or paying with fraudulent cheques. In some

situations the victim isn’t just out the item they are also out money; through overpayment by

the fraudster or shipping charges for the product.

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Warning Signs - How to Protect Yourself

• Complete agreement on price; scammers will not low ball you but will offer to pay you

more to immediately remove the ad from the website.

• Beware of overpayments with the request to send additional funds to a shipping agent.

• Use of the word “item” instead of what the item is that you’re selling (very generic

conversation).

• Authenticate payments before shipping the goods.

Directory Scam

Businesses receive an invoice for a directory, publication or listing that they did not order or

authorize. Fraudsters will place a call to the business and speak to an employee and ask to

confirm details such as company’s address, telephone number and other particulars. An

invoice is sent to the company and often payment is made by the

accounting department, not realizing the company never ordered

or agreed to pay for the directory. The fraudster may record the

initial conversation and use that against the company to verify

the purchase of the directory.

Warning Signs – How to Protect Yourself

• Educate employees at every level to be wary of unsolicited calls;

• Compile a list of companies typically used by your business;

• Fraudsters will use real company names like Yellow Pages to make the invoices seem

authentic. Inspect invoices thoroughly prior to making payment.

If you think you or someone you know has been a victim of fraud, please contact the Canadian

Anti-Fraud Centre at 1-888-495-8501 or report online at http://www.antifraudcentre.ca