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Holiday scams and fraud

The spirit of the holidays is a time of giving for most but, for scammers, it is a time of taking. The Canadian Anti-Fraud Centre highlights the most popular holiday scams so that you can recognize, reject, report and be merry.

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Counterfeit merchandise

Counterfeiters can easily create websites that look like legitimate manufacturers and offer products at a huge discount. Look out for huge and flashy discount ads that direct you to websites that look like legitimate manufacturers. If you do receive any inferior/counterfeit products, they could pose significant health risks. Protect yourself by:

Selling goods and services online

When buying and selling online, both buyers and sellers need to be aware that not all offers are trustworthy. Be suspicious of customers offering to pay more than the asking price. When selling goods and services online, always confirm that you have received a legitimate payment before you send the product. Fraudsters will also target anyone selling a vehicle online; make sure to use reputable websites if a vehicle history report is required.

Charity scams

During the season of giving, make sure your donations are going to the right places. Charity/donation scams involve any false, deceptive, misleading or fraudulent solicitation for a donation to a charity, association, federation or religious cause. Refuse high pressure requests for donations, ask for written information about the charity and do your own research. Remember to always ask the solicitor for the charitable tax number and confirm their registration with the Canada Revenue Agency (CRA) or by phone at 1-800-267-2384.

Crypto investment scams

Fraudsters are using social media and fraudulent websites to lure Canadians into crypto investments. Prior to investing, ask for information on the investment. Research the team behind the offering and analyze the feasibility of the project. Verify if the company is registered by using the National Registration Tool.

Romance scams

Watch out for people entering a relationship with you for the purpose of taking your money or personal information. An attractive fake identity lures you into a web of lies spun with loving messages and sweet promises. The fraudsters play on your emotions to get you to send them money for various, convincing reasons. They will say anything in order to gain your trust and, consequently, access to your wallet. Never send money to someone you have never met!

Cellphone promo and internet service provider scam

If you are looking to purchase a new cellphone this holiday season, don't fall for an incoming call claiming to be from your service provider. Fraudsters will claim to be a well-known service provider offering to gift you with a new cellphone and discounted plan. They will ask for your personal information for the "credit check" and then order a new phone in your name, but you'll never actually received the phone. Always find the official phone number for your service provider and make the call yourself.

Online shopping

Fraudsters pose as genuine sellers and post fake ads for items that do not exist. The listing price for almost any item (e.g. event ticket, rental, vehicle, puppy) is usually too good to be true. Research before you buy. Whenever possible, exchange goods in person or use your credit card for payment.

Phishing emails and texts

You may receive messages claiming to be from a recognizable source (e.g. financial institution, telecommunications company, service provider, shipping company) asking you to submit or confirm your information. They may even include a malicious link.

Secret Santa

You may have noticed multiple gift exchange posts on your social media feeds. This may seem like a fun activity where you only have to send one gift and receive multiples in return. Unfortunately, this exchange collects some of your personal information and also hides a pyramid scheme where only those on the top profit. Pyramid schemes are illegal in Canada.

Prize notifications

You may receive a letter or a call saying that you've won a trip, cash or a car, for example. You will be asked to confirm your personal information and then cover a few fees before your winnings can be delivered. Remember: If you didn't enter a contest or raffle, you can't win. You also can't enter another country's lottery without purchasing a ticket from within that country. In Canada, if there are fees associated to a prize, they are removed from the total winnings; you would never be required to pay fees in advance.

Emergency

Is a supposed loved one reaching out to you because they need money now and you're the only one they trust to keep it a secret? Resist the urge to act immediately and make sure it's actually them first by calling them from your contact list.

Gift cards

Gift cards are a popular and convenient way to give a gift. When buying gift cards in-store, make sure they haven't been tampered with by comparing others in stock and checking for a secondary fraudulent barcode that could have been added to the back of the gift card. They should also be considered like cash; once they are exchanged, it is unlikely that you are getting your money back. Gift cards are not meant for payments and no legitimate business or organization will request these; especially with a time pressure.

Identity theft and fraud

In all the hustle and bustle of the season:

Fraudsters love a good shopping spree; especially when they're using someone else's name and money. Contact your financial institutions and credit bureaus, Equifax Canada and TransUnion Canada, as soon as you notice:

  1. Suspicious activity on your financial statement/s
  2. Unauthorized activity on your credit report
  3. Letters approving or declining credit applications you did not authorize
  4. Re-routed mail
  5. Bills from service providers you do not use
  6. Your information was compromised as part of a database breach
  7. What to do if you're a victim

Shipping Fraud

Fraudsters will impersonate legitimate shipping companies and send you unsolicited text message or email asking for your personal and payment information because your package can't be delivered or it's being held for payment. They may even ask that you send payment to their fabricated shipping company, like the North Pole Express. Keep track of the packages you are expecting and don't respond or provide any information if you are not sure what the package is.

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