As the holiday cheer spreads, unfortunately so do the random texts, odd emails and spam phone calls meant to lure people into fraudulent schemes. Scammers know that the season brings more spending, giving, and transacting, exposing some unique vulnerabilities in the economy, says John Armit, a major fraud detective with the Ontario Provincial Police. “Fraudsters jump on these opportunities and craft strategies based on the time of year,” he says.
Scams are more than an occasional nuisance. Armit says that last year, the Canadian Anti Fraud Centre (CAFC) reported about $577 million in losses from fraud. At the end of this November, that number was already sitting at $574 million. Armit notes the actual figure is likely much higher, given that many losses are not reported.
According to a recent post by the CAFC, these are some of the most common holiday scams to look out for—and what to do if you are targeted.
Online shopping: fake websites and counterfeit goods
From Black Friday to Boxing Day, online shopping is at an all-time high over the holidays, and Armit says it’s crucial to verify the authenticity of every website you’re visiting. Also, a good rule of thumb is that if the price seems too good to be true, it probably is.
Counterfeit goods designed to mimic popular items are a problem that can pose risks to consumers in more ways than one, says Armit. “If it’s a really cheap, brand-name, down-filled jacket that’s said to be made in Canada, for example, I’d be suspicious,” he says. “We’re seeing bad actors manufacture products that imitate the real thing,” he says. In these cases, Armit advises thinking carefully about manufacturer claims. “There could be health and safety issues with down-filled jackets that are actually full of fake or contaminated duck feathers.” It’s best to research the company you’re buying from, consulting reviews and brand history to help you make smart buying choices.
Selling goods or services online
Platforms like Kijiji or Facebook Marketplace can be vulnerable to scams, usually in the form of a seller asking for your bank details, or requesting you send money before acquiring the item you’re buying. Scammers take advantage of popular, hard-to-get goods. Armit points to the recent Taylor Swift concert scams, where some fans lost thousands over fraudulent tickets.
“Classified online scams have always existed,” he says. “People will steal images or information from one platform and put it on their own, claiming to be selling authentic items.” He advises reporting scams to the platform you’re using, with as many details as possible.
Shipping frauds
These days, it’s not uncommon for shipping information for products purchased online to be sent via email or text. As a result, it’s easy for scammers to pose as a courier and request payment for the release of a package. Armit points out that with postal strikes and delays, there’s an even higher risk of being duped because consumers are more urgently awaiting parcels.
“One of my colleagues recently told me she got a text message from someone posing as Canada Post. They said there was a delay with her package, and asked her to click a link to receive it,” he says. Always double check order numbers and contact the shipping company directly about delays. Never click suspicious links.
Cell phone and electronics-related fraud
With phone companies offering holiday-specific promotions, fraudsters take advantage by pretending to be a provider and offering to send you a new device after collecting your personal information.
Armit points out that while our cell phones have made it easier for scams to reach us, they’ve also allowed us to report scams with less hassle, which is crucial. Now, Canadians can simply forward any suspicious text messages to 7726. Your phone provider will be alerted, investigate the spam message, and block that fraudulent number for all users if necessary. He reminds Canadians to alert the CAFC as well. “Reporting to us helps us stay on top of new scams and trends, allowing us to create bulletins and warn the greater public.”
Fake investments and cryptocurrency
This type of scam is becoming one of the most common, and not just around the holidays, says Armit. He adds that these scams often result in the highest dollar loss compared to others. Fraudsters will rope people in by asking them to invest in cryptocurrency. “The bad actors will get people to download remote-entry software, show the victims how to create a crypto wallet, and direct the victims to put their funds in there,” Armit says. Through the software, scammers will access victim information—and their money. He also says scammers have been using AI to create false videos of public figures talking up the benefits of cryptocurrency.
Like any investment opportunity, the CAFC recommends rigorously researching the company and using something like the Canadian Securities Administrators’ National Registration Search tool to find out if the business is legitimate. If you lose money in a fake investment or cryptocurrency scam, Armit advises reporting it to your banking provider immediately.
Romance fraud
Trying to wrangle money out of those looking for love is an age-old tactic, but Armit says fraudsters take advantage of folks who are extra lonely over the holidays, such as widows or single people. “The bad actors are scouring dating sites for sure, but they’re also reaching out to people through random texts or direct messages.”
He says police are seeing an uptick in “crypto romance fraud” as well, which usually involves fraudsters coercing those interested in a romantic connection to invest in fraudulent cryptocurrency schemes, as described above. Check in on loved ones who might be spending the holidays alone, and as usual, the CAFC advises you should never send money to someone you haven’t met and vetted in person.
Gift cards
A common present for friends or family members who are hard to shop for are gift cards, which are regularly targeted by fraudsters. Armit describes a common tactic where scammers steal a gift card from a store, adhere a barcode from another gift card over the original one, then put the doctored card back on the rack. When someone buys the faulty gift card, the money added will be loaded onto the fraudster’s card instead.
Armit advises examining the back of your gift cards to make sure there’s no overlay of another barcode, and checking it against other cards in the store to see if it looks altered. Sometimes gift cards are stored behind the tills, and you can ask cashiers for those instead as they are less likely to be tampered with.
Donating
While it’s important to give back during this time of year, scammers can take advantage of people by pretending to be from a charitable organization and asking for donations. There are ways to verify if a charity is legitimate, such as consulting this registered charity list from the Canada Revenue Agency (CRA). You can also contact the CRA’s Charities Directorate by phone at 1-800-267-2384.
When it comes to protecting yourself from scams over the holidays, remember this tip from Armit: “A lot of scams are unsolicited, and that’s when you should think twice about what’s being asked of you.”
Stay safe and shop smart out there, cottagers!
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