The Competition Bureau in association with the Better Business Bureau has listed out all the major scams that has been happening across the globe. Here are top 10 list of consumer frauds that have been happening in Canada for quite some time now.
- EMPLOYMENT SCAM: $5.3 MILLION LOST
Being the most reported scam according to major forums, this works as a chance where you might need to apply for a job at home and then get an interview. For that very thing, you need to pay a lump sum amount. This amount is nothing but a scam in the making where scammers will run away with your money.
- ROMANCE SCAM: $17 MILLION LOST
This happens across dating websites where Canadians often end up succumbing to their emotions and end up sending money to profiles who disguise themselves as fake persons. They fraudsters do it via fake phone emotional or romantic exchanges and then blackmail them with the above scenario.
- IDENTITY FRAUD: $11 MILLION LOST
Here the scammers steal one person’s identity by providing them offers in credit cards, bank loan lower interest rates and rent-free property to name a few.
- ADVANCE FEE LOAN: $1.1 MILLION LOST
Customers are often asked to pay an upfront fee to get a loan for their dream house or car in Canada or the US. They fall prey for the scammers who try to sell loans via non-reputable lenders.
- ONLINE PURCHASE SCAMS: $8.6 MILLION LOST
Scammers take advantage of the online scenario where they take your money and lose them at one go. They sell fake merchandise, or take the money and run away with the goods never showing up at your doorstep. Often there are a lot of fake trial traps that just steal your credit card information.
- WIRE FRAUD – $13 MILLION LOST
Wire fraud is a huge problem among the Canadian citizens where millions are lost every year when scammers pose as an agent from a top shot company and demand money to be wired directly to them for some serious cause. They mainly take advantage of the Phishing mechanism.
- BINARY OPTIONS SCAM – $7.5 MILLION LOST
Binary Options fraud is very common among the financial traders. It is promoted as low-risk and high returns but it is exactly opposite in real life. Full refunds are promised but they never happen. The brokers delay the profits and they also have a lot of problems when it comes to processing withdrawals. If you got an issue, you need to understand that binary options have a lot of high risks and as a result, you should seek professional investment advice.
- FAKE LOTTERY WINNINGS: $3 MILLION LOST
There has been a recent increase in the number of lottery scams that have been happening in Canada. They get emails that they have won a million dollars and when you reply to them, they ask you for a small amount as processing fees. Most end up doing it and lose the money.
- FAKE ONLINE ENDORSEMENTS AND SPONSORED CONTENT – $3.7 MILLION LOST
Often the consumers are enticed to buy products that are based on reviews. Hence, the more the number of 5-star reviews, it would be easier to sell the product. Unfortunately, most of the reviews here are fake and often people are paid to write such reviews.
- CANADA REVENUE AGENCY SCAM: $4.3 MILLION LOST
This is often called the Call Center Scam where call center employees target Canadians by calling them and offering them an offer that is extremely hard to reject. Canadians fall for them and as a result, lose a lot of money. Hence, it is suggested to not entertain phone calls and emails who entice with such offers.