The second fraud category is one we often hear about Consumer fraud. Individuals are more likely to be the targets of consumer fraud, although businesses are not immune. Consumer frauds often target older adults, youth, and individuals who do not natively speak the language.
Predatory fraudsters commit consumer fraud. These criminals are driven by opportunity, arrogance, and a criminal mindset. Those who commit consumer fraud have a plan and have chosen targets. The fraud may be attempted by a single individual or a group of fraudsters.
A few years ago, fraudsters posed as CRA agents and convinced individuals that immediate payment of CRA debt had to be made by gift cards. This was so prevalent in Calgary that some stores posted signage telling consumers that CRA would not demand payment via gift cards. While we may want to believe that no one would try this scheme again, fraud schemes resurface constantly. As recently as three weeks ago, individuals have been victims of this type of fraud.
I have been targeted in a missing heir scheme. My interest in genealogy gave the fraudsters the information they needed to attempt the fraud. They emailed me and asked if I was related to a specific individual, the last member of a wealthy family in England. My interest was piqued, which is precisely what the hook is meant to do. Get our attention long enough for the next step of the con to happen. The con didn’t work for me, but for someone else, it may have.
Consumer fraud uses hooks to get our attention.
The Grandparent Scheme is a widespread consumer fraud. In this type of fraud, the premise is that a loved one is in trouble and needs help. The sense of urgency is the driving force that the fraudster is counting on when committing this crime. The story can be that the loved one has been in an accident, is in jail, or is in financial trouble. The caller convinces the victim the information is secret and provides details for payment. Sometimes, a bank teller’s intervention can thwart this fraud; all too often, the fraudster is successful.
If you are contacted by someone claiming that funds are urgently needed for a loved one, ask questions that an imposter would not know the answers. Hang up the phone and call the person who is allegedly in trouble. Just like we teach young children a safe word that must be said before they go with a stranger, establish a code word or phrase that the family would know, one that is not common knowledge.
Kathleen O’Donoghue, CFE
Leave a Reply