Fraud Prevention Month

Backgrounder

March 2009

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Since 2004, the Fraud Prevention Forum has been organizing Fraud Prevention Month, a month-long education campaign in March to address the issue of fraud and ensure confidence in the marketplace. Interest in the campaign has resulted in a considerable increase in membership in the Forum, from 22 in 2004 to over 100 today. Members include major corporations, national and local police organizations, non-profit business and consumer groups and others.

As chair of the Fraud Prevention Forum, the Competition Bureau works with its partners to raise awareness among consumers and businesses about the dangers of fraud by educating them on how to recognize it, report it and stop it.

In 2008, the Competition Bureau received almost 15,000 complaints about mass marketing fraud, which is fraud by mail, telephone and Internet. These complaints included everything from fraudulent contests where winners were asked to pay up front to collect their prize, to bogus directory listings, where companies who did not order directories are contacted to verify their mailing information so that a bill can be sent.

Bureau experts say that when there is a downturn in the economy, there is often an increase in fraudulent activity. Below are some of the scams that the Bureau is watching closely along with some tips to help avoid being scammed:

Deceptive notice of winning a prize

• Never send money up front to collect a prize.
  
  
• Legitimate lottery and sweepstakes administrators never charge fees to deliver a prize.
  
  
• You have to play to win! If you’ve been contacted about a prize for a contest you didn’t enter, it’s probably too good to be true.

Business directory listings

• Make it a policy not to accept offers over the phone.
  
  
• Ask for a copy of the offer in writing.
  
  
• Closely examine ads or offers to be listed in a business directory.
  
  
• Ask for information about the product and customer references.

Work-at-home opportunities

• Be cautious of job ads that claim “no experience necessary”.
  
  
• Search for background information about the business.
  
  
• Beware of ads that include exaggerated claims about the amount of money to be earned.

In an effort to educate consumers and businesses about these sorts of scams during Fraud Prevention Month, the Bureau has a number of online products available, including an interactive fraud quiz, letters from victims, and prevention tips. For more information, please visit:
www.competitionbureau.gc.ca/fraud