Unwary Canadians are bilked online, watchdog says
John Bermingham
Province
The Internet can be a shadowy world when it comes to phoney offers. — FILE PHOTO
It’s a case of “caveat clicker” when it comes to avoiding online fraud, according to consumer watchdogs.
The worst Top 10 Scams of 2009 have an e-commerce focus this year, bilking B.C. consumers and businesses of millions of dollars and identity theft.
Online fraud watchdog PhoneBusters.comsays e-mail, Internet and text-messaging scams have bilked Canadian consumers for $16 million between January and November.
Lynda Pasacreta, president and CEO of the Better Business Bureau of Mainland B.C., said people have flocked to the Internet, without realizing they have to read the fine print before clicking “yes.”
“The key to avoid becoming a victim is education,” said Pasacreta yesterday. “We still see a huge knowledge gap. Web marketers are savvy to consumers who click first, and ask questions later.”
This year’s online scams run the gamut, from teeth-whitening products to text messages.
People sign up for a free trial, only to be hooked into monthly membership fees of up to $100, and can’t get them stopped. Or they get roped into monthly bills for premium text-message services, without realizing that they signed up when playing an online quiz or IQ test.
Another common scam is an investment opportunity, where a slick promoter entices investors to recruit others into the scheme, in return for commissions.
A survey this year by the Canadian Securities Administrators found that 48 per cent of B.C.’ers have been approached with a fraudulent investment, and 11 per cent invested.
“These investments appear lucrative, but often involve more hype than substance,” said Pasacreta.
Other popular scams include:
– Selling unauthorized, even counterfeit drugs and health products on the Internet.
– Cashback fraud, where a buyer sends a cheque for a larger sum, then asks the seller to transfer the difference, only to have the original cheque bounce.
– Office-supply scams, where telemarketers convince a business to make an order for over-priced supplies, then sends aggressive collection agencies demanding payment.
Government regulators say they’re going after the fraudsters, some operating from B.C., and are helping consumers who’ve fallen victim.
“We are seeing more consumers contacting us from places in the United States,” said Victor Hammill of the Competition Bureau.
Melanie Flint of Consumer Protection B.C. said it investigates consumer complaints, and helps them get out of contracts they didn’t understand, with the voluntary compliance of suppliers.
You can get more information on the Top 10 Scams, and how to avoid them, on the BBB’s website, at mbc. bbb.org.
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