When is a scam not a scam?

There were likely a good number of folks who got a phone call around tax time. The automated voice would state that a lawsuit was being filed against the person by Canada Revenue, and if they did not call the phone number given in the message an arrest warrant would be issued. Sadly a young Ontario woman fell for this scam as reported by Terry Pedwell of The Canadian Press.

The university student called the number and was told a police officer would call her to read her rights. She got the call and call display showed the local Ontario Provincial Police detachment. While she was a bit doubtful up to that point she began to see it as real. She was on the phone with the person for 3 hours. Under instructions from the caller she paid $600 into a Bicoin currency machine after being threatened with a lawsuit and jail time. Then after being told she was to pay an additional $400 in court costs and officers fees she hung up and called police. She was informed she had been scammed.

According to the Canadian Anti-fraud Centre nearly 1,000 people lost close to $4.7 million in nearly identical schemes. It is likely there were greater numbers and a greater loss, since some folks probably wouldn't want to admit they had fallen for this scam. This is just one of the many kinds of scams out there.

By now most people know that when you get a phone call promising to save you money on your credit card the scammers are at work. Then there are those phoning with the message that your computer has been infected with a virus, and they can take care of the problem...as long as you give them access to your computer and provide your password. This scam has been around for a while.

Scammers also use e-mail in an attempt to separate you from your hard-earned income. For quite some time there was the Nigerian Prince who would toss a couple million your way if you would just help them get their enormous wealth out of the country. Of course, you first had to give them access to your bank account.

I recently had an e-mail, supposedly from my bank. The message indicated there was a problem with my account and my account would be closed if I did not reply back and verify my information. I am not sure how the scammers correctly identified the banking services I use. If I had replied and given bits of key information my bank account would have been emptied in short order.

Scammers are immoral...and many have discovered the wonderful world of GoFundMe. They can simply tag into an actual news story and reap the benefits from soft-hearted, caring people. One scammer collected over $6,000...supposedly to help the family of a very sick baby. The money and the GoFundMe page disappeared.

GoFundMe cannot verify the validity of the accounts since there are hundreds of thousands set up each month. There are warning signs regarding fake campaigns. If the Facebook account appears to be fairly new with less than 40 friends or if the image used is readily available on-line...beware. Do the research, and if possible check with the family who is supposed to benefit from the funds.

In doing some checking regarding scams related to GoFundMe I came across some very questionable reasons for the accounts. Vacations, recording time in a sound studio, cosmetic surgery are some of the “important needs.” Some accounts appear because of poor judgement or poor financial planning. A young family can get hit by tragedy, resulting in real need. Even then...investigate before investing funds.

While it is nice the young university student found a benefactor to cover her $600 loss, it might have been better if she had taken the time to check things out before going into a panic mode. Please note...the CRA does not phone and threaten people. In fact, the only way Canada Revenue contacts individuals is through the postal service. Banks and credit card companies do not phone and they do not e-mail. They also use the postal service. Finally, there are no very wealthy Princes in Nigeria needing help to get their funds out of the country.

Shirley Hallee is a freelance writer living in Amherst. Her column appears weekly in the Amherst News.