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The Little Black Book of Scams

Images on this webpage are created by the author unless otherwise mentioned.

Images on this webpage are created by the author unless otherwise mentioned.

Guide to Protection Against Scams & Fraud

The Canadian edition of The Little Black Book of Scams is a guide to help educate and protect yourself against fraud. Though this is a Canadian edition, anyone can benefit from reading this guide and spreading scam and fraud awareness.

You will learn how to avoid becoming a victim of fraud, what to do if you have become a victim of scams, and how to report them to the authorities. No one is exempt from fraud, it affects individual people, businesses, government organizations, and it has an impact on the economy. Fraud happens offline and online, and comes in many shapes and forms like deceptive advertising, telephone scams, email scams, mail fraud, phishing and SMiShing, service scams, false charities, pyramid schemes, identity theft, lottery scams, and the list goes on.

Since the advent of the internet, fraud and scams have increased and continue to wreak havoc in people's lives. Take the time to educate yourself on ways scammers use to target unsuspecting individuals and share this with your family and friends. If we act together, we can protect ourselves and others from becoming victims of fraud.

Poll: Fraud and Scams

The Little Black Book of Scams: Internet Scams

Scams & Fraud: Recognize them, Report them, and Stop them

As mentioned earlier, scams come in many forms, both offline and online, including via mobile phones. The Canadian edition of The Little Black Book of Scams lists down some of the most commons scams used by scammers to lure and target Canadians.

In the following sections, you will find information on various types of scams as well as tips and information on how to avoid becoming a victim. Also, if you have become of victim of a scam, you will find resources on what you need to do and how to report scams. I've encountered some of these scams myself.

Lotteries and Sweepstakes Scams

The Lottery Book

The Lottery Book

Many people play lotteries and it can be exciting to win a lottery. Scammers use their deceptive skills to lure people into thinking that they have won the lottery, sweepstakes or contest. This type of scam can be in the form of a telephone call, an spam email, a pop-up dialog box when visiting certain websites, or a text message.

You may be asked to divulge your personal details including your banking information. Also, you may be asked to pay a fee or tax to claim your prize. Never divulge your personal details nor send money to people you don't know and trust. Remember that legitimate and licensed lotteries will not ask you to pay a fee to claim your prize. Above is an example of a Lottery Scam Email that I received, in May 2012, which was in my junk box.

Pyramid Schemes

Pyramid Schemes have been around for at least a century. They are illegal in many countries, including Canada and the United States, and unsuspecting investors are lured into paying a membership fee for a higher return. In a pyramid scheme, there is no legitimate product or service, rather the focus is on mainly recruiting other members into the scheme.

Some pyramid schemes are cleverly disguised as MLM (multi-level marketing) opportunities. There are many legitimate MLM opportunities through which one can make earn legal income. However, never be pressured into committing to any business or investment opportunity without doing your research.

Money Transfer Request Scams

Nigerian Scams

Nigerian Scams

Money Transfer Request scams come in many forms as well. The Nigerian scam is one of the most common one and I have personally come across several of these via spam email. Essentially, you get an email requesting your help to transfer large sums of money.

The scammers offer to pay you a share of the large sum being transferred. They will first request some of your personal details including your bank account information to transfer the funds. Later they will request you to pay various kinds of fees before the money is transferred. You will never see a dime from them nor will you be able to recover the fees you paid.

Another variation of money transfer scams is an email saying that the person has inherited a huge sum of money and requires your help to transfer the money using a similar approach as mentioned above. Never respond to such emails. Above, you can see an example of such a Money Transfer Scam Email that I have received.

Internet Scams

The internet has drastically increased the number of scams we see today. Internet scams take the shape of spam email, phishing, malicious software, online shopping and auctions, to name a few. As discussed above, some of these spam email messages include fake lottery wins and requests to help transfer money.

Another form of internet scam is phishing emails which include links to fake websites that look authentic and pose as your bank or other legitimate business. By clicking the phishing link in the spam email and entering your username and password, you are providing the scammers sensitive information that can be used to defraud you and in identity theft. Still others forms of internet scams include malicious software which is downloaded onto your computer without your knowledge.

This software can include spyware to track your keystrokes and viruses to infect and destroy your sensitive data. Also, scammers target consumers when shopping online and on online auctions. Refer to the tips in the section below on how to protect yourself online.


Mobile Phone Scams

With the increasing number of people using mobile phones, scams have now gone mobile. These scams come in the form of ringtone scams, missed call scams, text message scams, and SMS contest scams.

In terms of ringtone scams, you are offered free or low-priced ringtones. In doing so, you may be accepting terms for premium ringtones after a certain period for which you will be charged later. In terms of missed calls scams, the scammer will call your mobile phone and immediately hang up. You may be tempted to call back and could be charged for the call at premium rates.

Similarly, in the case of text message scams, you will receive an SMS message from the scammer posing as a friend. When you respond to the SMS message, you could be charged exorbitant SMS charges. The SMS contest scam works in a similar fashion, except that you are answering trivia questions in the form of SMS messages.

Also, nowadays with advancements in mobile phone technology, you can use them to surf the internet, shop online, conduct banking online, and much more. This increased online activity via smartphones means you need to understand Mobile Phone Security and protect yourself and data which is stored on your smartphone.

Health and Medical Scams

Medical and Health scams take the form of false medical claims for curing certain diseases or conditions as well as unrealistic weight-loss programs in a short period of time with little effort.

These may include alternative treatments, diet pills, revolutionary exercise equipment, and such. They are often hyped up to look legitimate with fake testimonials.

Another form of medical scams are illegal online pharmacies offering cheap prescription medication even without having a physician's prescription. These scams can appear via spam email or through banner advertisements when visiting websites or search engines. You should always check with your medical professional before venturing into anything that could affect your health and well-being.

Scams Targeting Senior Citizens

Scams Targeting Senior Citizens

Emergency Scams

Grandparents are generally the targets of Emergency scams, in fact, these scams are sometimes called Grandparent scams. In this case, the scammer calls the grandparent, over the phone, posing as the grandchild.

The scammer goes on to say that they are in an emergency situation like being in another country not being able to return, or being in a car accident and require money urgently.

Basically, the scammer creates an emergency scenario to play with the emotions of the senior so they can get them to act quickly. In cases like these, ask questions to verify that it is indeed your loved one. Or call other members of your family to check the legitimacy of the claims and make sure that you don't send any money to people you don't know and trust. It's sad to see how these scammers even target the most vulnerable.

Dating and Romance Scams

Dating and Romance scams often happen via fake dating websites, but could also happen on legitimate dating websites. The scamming website generally charge a fee for corresponding with other members.

The plan of the scammer is to keep you engaged on the website by sending love messages so you can keep corresponding. In other cases, once the scammer has build a good rapport, they will fabricate a sad story about one of their family members being sick and requiring money for the treatment.

The scammer may also say that he or she would like to come visit you and requires money for the visa and passport. There are many people who have found love online, but there are many more who have been scammed, so be cautious before you commit to divulging your personal information and sending your hard earned money.

Charity and Donation Scams

Charity and Donation Scams

Charity Scams

In Charity scams, unsuspecting people are approached by scammers, posing as legitimate charities, asking for donations. Scammers may approach you by email, phone, over the internet, and even at your door step.

Scammers may use recent tragic events or natural disasters to prey on unsuspecting individuals taking advantage of their generous hearts. The scammers may even use advertising material of legitimate charities and pressure people into making a donation. A good option to donate to charities or a particular charitable campaign is to do so directly with the charitable organization via their legitimate website or send a cheque made payable to the licensed charity.

Job and Employment Scams

Job and Employment scams, as the name suggests, are targeted towards people looking for work. You may encounter these employment scams via spam email, scam websites, or online advertisements, even newspaper advertisements.

Some of these job scams maybe home-based jobs like mystery shopping to test services like encash cheques or transfer money, use your bank account to receive deposits and transfer the funds to foreign countries, etc. Other job scams may guarantee jobs to candidates for a one-time fee. Job scams may also take the form of business opportunities as discussed earlier like pyramid schemes.

There are legitimate ways to make money online, work from home, or get a job. So be aware of these scams and do your research before giving away your personal information, making a payment or committing to any job opportunity.

Small Business Scams

In Small Business scams, scammers target unsuspecting small business owners in various ways like false alerts of expiring domain names for their websites; paid advertisements disguised as free offers; and receiving office supplies that you didn't order and then being invoiced for them.

Another form of office supply scam is, you may receive a call from a scammer claiming to be your stationary supplier and saying that they have a limited time special. If you decide to take advantage of this so-called "special", you may end up getting low-quality products that are overpriced. Whenever you get such messages, it's best to not to make any commitment or payment over the phone. You can always take down the details of the offer and call your regular supplier to confirm whether they were the ones calling.

Make sure to advice your staff who are responsible for taking calls or processing payments, so they are aware about these types of scams.

Service and Repair Scams

Service and Repair Scams

Service Scams

Service scams come is various forms as scammers target people offering lower credit card interest rates, extended warranties, better insurance rates, anti-virus software or computer repair over the internet, better priced telecommunication services, and so on.

The scammers generally create a sense of urgency by saying it is a limited time offer to get you to act quickly. The scammer's intention is to get your credit card details, your bank account number, or install malicious software on your computer which is able to hack into your computer. Never entertain such calls no matter how good the offer sounds. If you are really interested in the offer, you can always immediately call your real service provider to check the legitimacy of the offer.


Tips to Protect Yourself from Scams

How to Protect Yourself from Scams & Fraud in 2014

Now that you are aware of many of the ways scammers use to target unsuspecting people, here are a few tips to help you be proactive and protect yourself from becoming a victim of scams and online fraud.

Personal Information: If you've read the various types of scams, in the earlier section, you will notice that, in many cases, scammers attempt to get access to your personal information including your banking and credit card information. Never divulge any of your personal information to people you do not know and trust. Use strong passwords, especially if you shop and bank online. Also, your mobile phone contains a lot of sensitive information, password-protect it.

Email Messages: As discussed earlier, scammers use spam email as a way to scam people. When you receive spam email, never click on the links nor respond to the email, just delete it. Also, avoid unsubscribing to the email because in doing so, you send a verification to the scammer that it is a valid email address. Sometimes, spam emails look so authentic that you end up clicking one of the links in the email. If you do so and it takes you to an authentic-looking website that asks for your username and password, never do so. It is a phishing attempt.

Phishing: is the act of acquiring sensitive information like your usernames and passwords by masking as an authentic entity. You may receive phishing links via spam email, on your Facebook wall, or even a text message on your mobile phone. Sometimes, you may receive a phishing email link from one of your trusted friends because their email account may have been hacked into, so be careful. Also, be aware when using public Wi-Fi networks or computers, especially if you're banking or shopping online. The main thing is not to click on the link, and if you do, never enter your username and password on the website that the link redirects you to.

Telephone Calls: If you receive calls from people you do not know and trust, or people posing as a trusted entity, like your bank, be on guard. Note down the information from the person who calls you and then call your bank or the company directly to verify that they indeed called. Never divulge your personal and sensitive information. If you do get missed calls or text messages, on your mobile phone, from phone numbers you do not know, don't call back. If you are receiving unwanted phone calls, you may want to register your phone number on the Do Not Call List.

Sending Money: As you've learned from the above, scammers use many ways to con you into sending money that you will most probably never see again. Therefore, before you do make any payment, make sure you know and trust the people or company. If you win a legitimate lottery, they will never ask you to pay a fee to claim your lottery winnings. Never agree to transfer money to and from your account for people you don't know, it could be a money-laundering scam. Remember if someone asks you to pay for a job you apply for as a guarantee, it's a scam.

Security Software: In today's internet world we do so much online and store a wealth of sensitive information on our digital devices like computers, tablets and smartphones. This information, if not protected, can be used by cybercriminals. Therefore it is imperative that we secure this personal and sensitive information. Using a computer protection and internet security software is a good way to do so. I've used Norton Security Products for many years now, but there are many other reputable ones that you can use as well. These software applications help protect your computer from viruses, spyware, malware and other online threats.

Do Your Research: Whether it is a business opportunity, offline or online, do your research before making any sort of commitment. Visit the BBB (Better Bureau Business) website to verify if it's an accredited business. Never bow down to pressure of limited-time offers and opportunities. If you shop and bank online, make sure that you use reputable sources.

How to Report a Scam? What to Do if You Get Scammed?

Unfortunately, sometimes no matter how careful you are, getting scammed becomes a reality in one's life. If you have been defrauded there are steps that you can take to minimize the damage and deal with the consequences before things get worse.

Also, by reporting scams you help alert the authorities and help others who may have become potential targets. Use the websites below which will guide you on what steps to take depending on what type of scam you've been affected with.

  • Competition Bureau of Canada
    This is the official website of the Competition Bureau of Canada where you can report various types of scams. It includes information from different organizations depending on the type of scam.
  • USA.gov Government Portal
    This is the official US government website where US residents can report different types of scams. It also is a useful resource to learn more about fraud and scams, as well as, includes statistical data.


Info Research Source: Competition Bureau of Canada

Updated: March 28, 2016

Have you been a victim of fraud and scams? Share your thoughts, tips, and comments on frauds and scams

Guestbook: Little Black Book of Scams

Anthony Godinho (author) from Ontario, Canada on July 09, 2015:

@LarryRankin thanks for stopping by. Yeah, scams are becoming way too common and many innocent victims are becoming statistics. Scammers somehow are able to almost always stay one step ahead, so it's important that each one of us plays our part to help the other.

Larry Rankin from Oklahoma on July 07, 2015:

Scams are so prevalent these days it is always good to have watchdogs like yourself.

Very useful hub.

Mary Norton from Ontario, Canada on November 30, 2014:

This is really very enlightening. I wish that people will stop doing this and do something positive with their talent and skills.

Anthony Godinho (author) from Ontario, Canada on November 16, 2014:

Thanks for stopping by @MelRootsNWrites - yes indeed, scammers are constantly getting creative in their ploys and it's important to be proactive and stay vigilant.

Melody Lassalle from California on November 14, 2014:

This was extremely informative. I have heard about a few of these scams before. It seems that we must be on top of these things because the scammers get more clever with each day.

Anthony Godinho (author) from Ontario, Canada on November 13, 2014:

Hi @favored thanks for stopping by. Yes, nowadays these scams are all over the place and still happening offline, though a lot of is moved online and on mobile platforms. I receive scam emails every week and some of them as well disguised, but you can almost always spot them with some scrutiny. Stay blessed and safe!

Fay Favored from USA on November 13, 2014:

AJ this has been so helpful. It seems that my husband is always telling me about some sort of scam. The email ones are big and I never open that mail. Making sure to pin this on my Internet board. BTW - Found this article on Rich's The News That Matter (@Squid_Rich on Twitter).

Anthony Godinho (author) from Ontario, Canada on November 13, 2014:

Thanks Chazz!

Chazz from New York on November 12, 2014:

Congratulation on being a Rising Star winner! Well deserved.

anonymous on April 28, 2013:

This is a very nice lens - and informative - thanks for sharing.

LadyDuck on April 11, 2013:

Your lens is very well done, informative and useful. Angel blessed!

dellgirl on January 08, 2013:

What a timely lens and, the perfect time for me to find this information. My email was hacked yesterday with this one...'an emergency situation of being in another country not being able to return, and requiring money urgently.' This urgent message was sent to every contact in my list.

Fortunately, friends and relatives started calling immediately and, I (my daughter) was able to change my password. ~Blessed~

Jeph Maystruck from Regina, SK on December 29, 2012:

More people need to read this lens. Nice work mate.

TransplantedSoul on December 15, 2012:

I have had my debit card compromised once, and my credit card charges with bogus charges. For the debit card, the bank somehow recoginized it within minutes and called me - they were wonderful. For the credit card, I had to follow-up with them to report this, but again, a great response.

Stephen Bush from Ohio on June 04, 2012:

SquidAngel blessings.The potential for this kind of fraud can only get worse given current economic conditions combined with technological tools that are available.

Anthony Godinho (author) from Ontario, Canada on June 03, 2012:

@Lady Lorelei: Yeah, as per the Canadian Anti-Fraud Centre Annual Statistical Report 2011, Canadian between the ages 60 and 69 were the most targeted, but those between the ages of 50 and 59 reported the highest dollar loss due to scams and fraud. I'll be including some stats. I was just waiting for permission, from CAFC, to use information from their report in my article.

Lorelei Cohen from Canada on June 03, 2012:

I didn't realize that the Canadian government had a book to help Canadians become aware of scams. This would be good for more seniors to be aware of as they seem to be the target of many scams and schemes. There certainly is enough of this stuff on the web isn't there? Thanks for another insightful article.

Anthony Godinho (author) from Ontario, Canada on June 03, 2012:

@joanhall: Thankfully, I've been able to avoid any phishing attempts though I receive them almost on a daily basis, mostly via email and social media. It's mainly through friend's accounts being hacked into, but also via spam email. However, I once had my Hotmail account hacked into. Though, I was on my computer when it happened, so I was able to quickly change my password so not much damage was done other than some of my friends receiving spam email from my account.

Joan Hall from Los Angeles on June 01, 2012:

I got phished once. Not for any money or anything, they just got my myspace password, but I really felt like an idiot.