Five red flags that it might be fraud

Each year, thousands of Canadians lose millions of dollars to fraudsters. It can happen to anyone and the impact can be devastating. When it comes to fraud, knowledge is your power. Here are 5 clues from the Competition Bureau Canada’s Little Black Book of Scams that the person you’re dealing with may be running a scam:

1. Wire transfer: Has a supplier requested payment via wire transfer service, like MoneyGram and Western Union, or with a cryptocurrency like Bitcoin? Many scammers favour these payments. Proceed with caution. Money sent through these services is like sending cash — once picked up, it’s almost impossible to get your money back.
   
   
2. Spelling/grammar mistakes: Is an email offer riddled with grammatical or spelling errors? Be wary. Examine the email and web address of the sender to ensure they really are who they say they are. Often there are subtle mistakes or differences in the web/email address that show if the sender is valid.
   
   
3. Personal information request: If someone asks for copies of your passport, driver’s licence and social insurance number, be very suspicious — especially if you don’t know the requestor. Fraudsters often ask for more personal or financial information than is required for the transaction or discussion.
   
   
4. Unsolicited calls: It may be a call from someone claiming that you owe taxes, have a computer virus or that your bank account has been hacked. Legitimate organizations seldom make direct calls like these. Hang up and call the organization yourself using a number from your files or from the company’s website.
   
   
5. It’s just too good to be true. As the old adage goes: if it seems too good to be true, it probably is. Astonishing deals, unbelievable discounts and unreal rates may signal that the offer isn’t quite what it seems. Cheap prices typically mean cheap products, or counterfeit goods.