Fact sheet

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Hang-up on Fraud

July, 2000

Imagine this: You receive a telephone call from a person claiming to represent the Canada Customs and Revenue Agency (CCRA). The person sounds official and friendly, and tells you that $250,000 in American lottery winnings are being held for you at the border. However, to claim your prize you must first pay 3% of your winnings in taxes or duty. Excited, you quickly send $7,500 to the address given, but you never receive your "prize." You have just been scammed.

From 1996 to 1999, Canadians lost more than $35 million through telephone scams like this one. Although telephone fraud has decreased in Canada over the last four years, it's still a serious problem among seniors. In 1999, three-quarters of the victims of fraud were aged 60 or older. Defrauders have also tried to scam seniors by sending official-looking letters asking for payment, or by requesting banking or credit card information over the phone.

How can you tell if you're dealing with a legitimate CCRA representative?

• The CCRA will not ask for a specific method of payment, such as a bank draft or money order.
• The CCRA will not ask you to send a payment to anyone other than the Receiver General for Canada.
• The CCRA will not call you to make an initial request for payment; instead, the CCRA will send a notice or statement by mail.
• The CCRA will not ask you to provide money to receive a cash prize since lottery winnings are not taxed in Canada.

In addition, when the CCRA mails notices, statements, and other documents to its clients, it only uses official CCRA letterhead. You should question the authenticity of anything that doesn't use official letterhead.

How can you protect yourself?

• Ask who the caller represents and how the caller can be contacted. Ask for written information and references. If the caller refuses to give this information -- hang-up.
• Remember that a prize is a prize -- you should never have to pay to receive a prize.
• Do not be pressed into making an immediate decision. A legitimate telemarketer will give you time to think it over.
• If the CCRA is mentioned, you can confirm the information by calling your local tax services office to verify that the call is legitimate. The numbers for these offices are listed in the government section of your telephone book.
• Do not send any payment unless you confirm it is a valid CCRA request.
• Do not give out banking information over the phone.

If you have been a victim of fraudulent telemarketing, do not hesitate to tell a family member or someone you trust. Report the incident to the police since it is the only way they can fight this crime. Also, know that if you have been victimized once, you are at risk of being a target again. Some victims have reported receiving three to four telephone calls a day from criminals trying to scam them out of more money. Even if a caller tells you they have recovered your winnings, be careful! Fraudulent telemarketers have used this line to scam even more money from their victims by asking them to pay a fee to have their money, stolen in the previous scam, returned to them. You should never have to pay to have your own money returned to you.

If you are suspicious about a call you have received, we encourage you to call Project PhoneBusters, the national deceptive telemarketing call centre run by the Ontario Provincial Police. PhoneBusters also operates SeniorsBusters to help seniors deal with this problem. PhoneBusters can be reached toll free at 1-888-495-8501 from anywhere in Canada and the U.S. and can be visited on the web at: www.phonebusters.com.

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Date modified:

2000-07-12