Watch out for scams

Some companies say they will give you credit even if you have a bad credit rating. They usually request an up-front fee, which may range from hundreds to thousands of dollars. Once you send your money to these companies, you never get your promised loan and you cannot get your money back. In most provinces and territories, it is illegal for a company to request an up front fee prior to obtaining a loan.

A scam known as a Nigerian Letter Scam also claims many victims. It begins when a victim receives an urgent and confidential email from a well-connected Nigerian making a business proposition. He may claim to have recently come into some wealth or inherited a family fortune and that he is looking for a foreign partner to help claim these assets.

He explains that his position prohibits him from opening a foreign bank account and asks victims to deposit the money (often between $25 and $50 million) into their account in exchange for a certain percentage. To complete the transfer, the scammer requests personal financial information (name of your financial institution, telephone and fax number, account number, etc.).

The outcome is simple: as a test, the scammer transfers several thousand dollars into the victims' accounts and asks victims to send back a portion into his home account. A few weeks later, victims learn that the initial payment they received was without funds, while the money they transferred into the scammer's account cannot be recovered from an international perspective.

Be wary of sites that post application forms that require personal information (name, social insurance number, date of birth, address, phone number, etc.). Fraud artists post tempting job offers using the names of prestigious companies.

Classified ads also sometimes disguise pyramid schemes as legitimate job offers. Be careful! Pyramid schemes are illegal under The Competition Act and you could be prosecuted.

In this type of scam, the fraudster:

• claims to be the grandson of the person on the other end of the line or a loved one
• says that he needs money immediately following an accident, trouble with the law or various problems in a foreign country

It's up to each and every one of us to protect our loved ones by telling them about this type of scam.

The fraudster's scenario

He calls an elderly person and claims to be one of her grandchildren or a loved one in need of help. He says: "Hi grandma, it's me! Do you know who this is?"
Convinced that she is speaking to one of her grandchildren or a loved one, the elderly person replies: "Yes, it's [person's first name]."

How to detect this type of scam

The fraudster:

• claims to be the grandson of the person on the other end of the line, but he could also be a neighbour, friend, police officer, lawyer or doctor
• claims to have been in an accident, to be in trouble with the law or to have various problems in a foreign country
• explains why his voice is different by claiming to be injured or saying that the call quality is poor
• says that it is an emergency
• insists that it remain a secret.

Why does a person become a victim?

• The fraudster uses emotional ties between him and her.
• The targeted person is willing to help him.
• The targeted person:
  • has no time to think, she must act immediately
  • does not take the time to validate the information with a loved one

Tips

• Ask a few personal questions to the person on the other end of the line that only your real grandchildren or loved ones can answer: name of a parent, his or her city of birth, a unique family moment, etc.
• Hang up right away if you have doubts about a call.
• Validate the information with a family member or contact your caisse even if the person on the other end of the line said that your conversation must remain a secret.
• Never transfer money immediately after getting a request to do so by phone.
• To get psychological support, contact your CLSC.

You can also see Beware of Telephone Scams (PDF, 5.5 MB).

Have doubts about a situation?

Learn more:

• Canadian Anti-Fraud Centre
  Toll-free phone: 1-888-495-8501
  Toll-free fax: 1-888-654-9426
  Contact by email
• Your local police service
• AccèsD Services
  Toll-free number: 1-800-CAISSES (1-800-224-7737)

Test your Web security knowledge and behaviour

In addition to the information in this section, we have added a document you can download entitled Security: Access and Payment Methods (PDF, 163 KB) or get a copy from your caisse.

Your advisor can help you protect your financial wealth

Before committing to a new investment opportunity, talk to your advisor about the risks involved, as well as potential gains and losses.

When in doubt, ask for detailed information and speak with your Desjardins advisor.

Are you doing business with registered professionals?

Place your trust and financial wealth in the right hands. When someone approaches you to invest in financial products, make sure you're dealing with a professional registered with Quebec's Autorité des marchés financiers (AMF) or the Ontario Securities Commission (OSC).

Check the status of a representative's licence:

• In Quebec
• In Ontario

A few clicks can save you a world of trouble!

Are you being offered high-yield, low-risk investments?

Many fraudsters draw your attention with high-yield investments. You may, for example, be offered a 5% monthly return—but when you take a closer look, the return on investment is in fact closer to 80% a year, a number that is, unfortunately, far from realistic.

Investments that promise high returns and low risks warrant a closer look. If you're uncertain, speak with your Desjardins advisor for a second opinion.

Did you hear about the investment opportunity from a friend, acquaintance or family member?

Many victims of fraud lower their guard when they hear about an investment from someone close to them. By the time they both discover the fraud, it's too late to find the fraudster and recover their money.

Always make sure an investment is safe and legitimate, regardless of the person who tells you about it.

Were you asked to make a payment in cash or make a cheque out to an individual?

Always transfer assets to a well-known business. That way, you can track your funds when you entrust them to a registered professional or potential business partner. Cash and personal cheques are usually the currency of fraudsters.

Is the investment a “Once in a lifetime” opportunity?

Investing under pressure is no way to do business. Fraudsters use a sense of urgency and secrecy to manipulated their victims and force them to make a decision. After all, the last thing they want is for you to consider these 5 questions and discover their true intentions.

Learn to say no and give yourself the time to do some research.

Learn more:

• See Investment fraud prevention (PDF, 600 KB).
• Watch the video Déjouez la fraude financière en 5 bonnes questions (in French only)