Fusion Credit Union - Fraud Resources

Fraud Resources

Emergency Scams

A fraudster calls or emails, pretending to be a relative in trouble. Emergency frauds typically target senior citizens, taking advantage of their emotions to steal money. The scammer will claim they have been in a car accident, are in jail, or having challenges returning from a foreign country and need money fast. The fraudster may even pretend to be a lawyer or a police officer to make it sound legitimate.

Never react quickly. Take the time to verify the story. Scammers want to play on emotions and convince victims to make a quick decision.
Hang up and call another relative, or the person they are claiming to be on the phone, to verify the story.
Ask the person on the phone to verify personal questions that only your loved one would be able to answer in order to verify identity of the caller.
Never send money to anyone you don't know or trust.
Never give out personal information to the caller.

Gift Card Scams

Gift card scams can take several forms:

Payment scams - Fraudsters will pressure individuals into buying a gift card through phone calls, email or text. The fraudster may claim they are from the government, utility company or computer tech support company and are demanding services or overdue bills be paid with a gift card. Once purchased, the scammer will ask for the number on the back of the card and proceed to use the card at the cost to the victim.

In store scam - Scammers will use the actual gift cards in a store to deceive innocent shoppers. By placing fake cards on the rack, or covering up bar codes with their own codes, scammers will trick shoppers into buying fake cards.

Remember - a legitimate company or organization will never ask you to provide payment in the form of a gift card.
When purchasing a gift card in store, choose a card from the back of the rack and purchase from stores that have gift cards close to or behind the cashier counter. Avoid purchasing gift cards from unfamiliar brands.
If you are a victim of a gift card scam, report to the gift card company immediately and ask for your money back.

Identity Theft

In this type of fraud, scammers will steal personal information to make purchases, obtain passports, receive government benefits and apply for loans. They will look for credit card numbers, bank account details, signatures, social insurance numbers, passport numbers, online usernames and passwords and any other personal information needed to pretend they are someone else. To obtain the information, fraudsters will steal mail, go through garbage bins and also use sophisticated methods, such as spyware and viruses, hacking and phishing.

Never provide your personal information over the phone, through text message, email or the internet.
Avoid using public wifi and computers when accessing personal information such as your bank account.
Shield your PIN when using your debit card and do hand over to a cashier.
Create strong and unique passwords for all of your online accounts. Set up multifactor authentication on all accounts.
Shred and destroy all documents with personal information.
Use a secure and reputable payment service when buying online. Bookmark common websites where you need to log in and look for a URL starting with "https" and a closed padlock symbol. This means the site is secure.

Investment Scams

Investment fraud is when an investor tries to get you to make an investment based on false or misleading information. They promise that you'll get rich quick or double your money, but in reality they take your money and disappear.

Cryptocurrency, multi-level marketing schemes, pump and dump schemes and fake digital wallets are all types of investment scams.

Claims that you can make a lot of money with little or no risk - if it's too good to be true, it probably is.
Being provided a "hot tip" or insider information - it is illegal to knowingly trade on insider information.
Pressure to make a quick decision - always take time and consideration when making an investment decision.
Offers from complete strangers - be on high alert if someone out of the blue offers an investment opportunity.
Unregistered sales people - anyone selling securities or offering investment advice must be registered with a provincial securities regulator.
Overly complicated investments - honest advisors will make investing your money simple and straightforward.
Avoiding questions - a legitimate investment advisor will take the time to answer your questions - they have nothing to hide.

Be careful when receiving unsolicited investment opportunities from a stranger, including a recommendation from a friend on social media.
Research the opportunity to ensure the investment opportunity is legitimate and take your time before making an investment.
Check to ensure the personal or company is registered with the Provincial Securities Agency or visit the National Registration Search Tool.

Fraudsters capitalize on the general lack of knowledge regarding cryptocurrency. They also take advantage of people's fears of missing out on new technology and create a sense of urgency, so investors make quick, uninformed decisions

There are several types of cryptocurrency fraud:

Multi-level marketing schemes

Scammers will lure investors with the promise of high interest and low risk (for example, one per cent daily returns) on a new virtual token or coin. Investors are incentivized to recruit more members through commissions. Promoters rely on online/social media advertising to hype schemes and attract new investors. Eventually, the company will shut down, and leave investors with nothing but worthless cryptocoins or tokens.

Pump and Dump Schemes

Groups collaborate to buy a low-value cryptocurrency, and then heavily promote it on social media to push up demand and increase the price. Once a certain threshold is met, there is a sudden, coordinated sell-off. Those unaware of the scheme are left with the devalued cryptocurrency.

Fake Digital Wallet

A fake digital wallet can be set up by a scammer to lure users into unknowingly providing their private key or code – once obtained, the scammer will steal all available cryptocurrency.

High volatility
Lack of regulation
Vulnerable to hacking and theft
No recourse if money disappears
Untraceable once lost

Merchandise Scams

Merchandise scams can take two forms - buying online and selling online:

Buying online - Scammers will create fake websites or fake accounts on legitimate sites such as eBay, or online marketplaces. The items are advertised at very low prices, enticing you to buy them. The shopper will pay for the item and the item may never arrive, or will be poor quality or damaged.

Selling online - Scammers will pose as buyers, tricking innocent sellers into taking their money or merchandise, or both. In one situation, a fraudster will agree to buy an item without seeing it. The seller will receive a PayPal or email money notification that claims the payment is pending. The notification will claim that the payment will only be released when a tracking number is provided. The items is shipped but the payment notification was a fake.

In other cases, the merchandise may be paid with a fake money order, fraudulent cheque or stolen credit card.

Overpayment scams often occur when selling items online. The scammer pretends to have accidently overpaid or changed their mind about purchasing the item and asks for the overpaid amount to be refunded back to them. The original payment was not valid and will be reversed or bounced, leaving the seller without the refund amount, the payment, and possibly the merchandise.

When purchasing items online:

Only purchase from companies or individuals you know from experience or past experience.
Use a credit card or payment service, such as PayPal when buying online. Many offer protection and may provide a refund.
If shopping on an unfamiliar website, look for spelling mistakes and grammatical errors as they are signs of a fraudulent website. Fraudsters will create fake websites to sell counterfeit merchandise. In addition, look for "https" in the URL and a locked padlock symbol as this means the site is secure.
Be wary of big and flashy discount ads - they may lead to fake websites.

When selling online:

Never send money to get money - this is an overpayment scam.
Always meet in a local, public and safe place to complete an exchange.
Verify the sender's email address - scammers will create fake email addresses similar to legitimate ones, with just one or two different letters.
Beware of buyers from far away who want to buy products without seeing them.

Phishing and Smishing Scams

Scammers send an unsolicited email, claiming to be from a legitimate organization, such as financial institutions, businesses or government agencies. The fraudsters are "phishing" for personal information. The email will ask the victim to provide or verify personal information such as credit card numbers or passwords. The email may also contain a link to verify the information.

Smishing is the same as phishing, except it occurs through text messages. A fraudster is claiming to be a legitimate organization in an attempt to steal personal information.

Remember - financial institutions, and other legitimate businesses and organizations will never ask for personal information through email or text
Delete communications from unknown contacts. The emails could contain viruses.
Do not reply to spam messages, even to unsubscribe.
To verify a hyperlink without clicking, hover your mouse over it and carefully check if it is accurate.
Install and update antivirus software on all devices.
Verify all contact information in the email by using information listed on verified websites. Never use the contact information listed in the unsolicited email or text message.

Romance Scams

A fraudster creates a false identity and pretends to have romantic feelings for the victim, all in an attempt to obtain money. The scammer will want to enter into a virtual, online relationship in order to gain trust from the victim. After some time, when trust has been gained, the scammer will want to continue the conversation on another platform, such as email, phone or another messaging app. The final step is the scammer asking the victim to send money for plane tickets so they can travel to see the victim, surgery expenses for themselves or a loved one, or to pay off gambling debts.

Click here to read more about Romance Scams.

Always be suspicious and do your research when a stranger contacts you online.
Try to learn the person's identity online or determine if their photo has been copied from the internet.
While it's nice to find true love quickly, beware of people who try to push the relationship forward quickly. If you're being asked for money, this is a red flag. Don't send any.