Scammers target desperate victims who are struggling to pay bills: BBB
Fraudsters are using the challenging economy as leverage to get into the wallets of unsuspecting victims, says a consumer protection agency.
The Better Business Bureau serving Southern Alberta and East Kootenay says scammers have been disguising themselves as money lenders and reaching out to consumers directly with offers of loans.
The agency says the money is linked to a condition that a fee must be paid by the recipient, but once that cash is sent, the scammer disappears and no loan is ever dispensed.
"The past two years have been very challenging economically," admits president and CEO Mary O'Sullivan-Andersen in a release.
"Many of us were compelled to borrow money to get by. Unfortunately scammers took advantage of these circumstances."
The BBB says consumers in southern Alberta, as well as across Canada, lost millions to these types of scams in 2021.
O'Sullivan-Andersen says that victims in these situations often don't report them to authorities.
"The research that BBB carries out indicates that only five per cent of people who are victims make a report," she said.
"This means advance fee loan scams could be costing Canadians hundreds of millions of dollars in any given year."
The BBB suggest consumers review the following guidelines to avoid being scammed:
- Watch for any requirements to pay fees in advance before accessing loans;
- Unsolicited offers of money through email, text or phone calls are always red flags;
- The so-called lenders are not based in the province where you live;
- There are promises of "no credit checks" and "loan approvals are guaranteed"; and
- You cannot determine if there is a physical location of the business offering the loans.
O'Sullivan-Andersen says anyone who finds themselves in a dire financial situation has options.
"Talk to your bank, credit card company or a reputable credit counselling organization. There are solutions even when things seem hopeless."
CTVNews.ca Top Stories
Aviation experts say Russia's air defence fire likely caused Azerbaijan plane crash as nation mourns
Azerbaijan on Thursday observed a nationwide day of mourning for the victims of the plane crash that killed 38 people and left all 29 survivors injured as speculation mounted about a possible cause of the disaster, with some experts saying that the airliner was damaged by Russian air defence fire.
Police identify victim of Christmas Day homicide in Hintonburg, charge suspect
The Ottawa Police Service says the victim who had been killed on Christmas Day in Hintonburg has been identified.
Boxing Day in Canada: Small retailers fear big shopping day won't make up for tough year
It’s one of the busiest shopping days of the year: Boxing Day sees thousands of people head to malls and big box stores to find great deals. But it's not so simple for smaller shops.
Raised in Sask. after his family fled Hungary, this man spent decades spying on communists for the RCMP
As a Communist Party member in Calgary in the early 1940s, Frank Hadesbeck performed clerical work at the party office, printed leaflets and sold books.
Finland stops Russia-linked vessel over damaged undersea power cable in Baltic Sea
Finnish authorities detained a ship linked to neighboring Russia as they investigate whether it damaged a Baltic Sea power cable and several data cables, police said, in the latest incident involving disruption of key infrastructure.
Police in New Brunswick investigating Christmas Eve sudden death
An unconscious individual was found in the 600-block area of Lancaster Avenue early Christmas Eve morning, and was later pronounced dead at a hospital.
Body found in wheel well of plane at Maui airport
A person was found dead in the wheel well of a United Airlines flight to Maui on Tuesday.
Your kid is spending too much time on their phone. Here's what to do about it
Wondering what your teen is up to when you're not around? They are likely on YouTube, TikTok, Instagram or Snapchat, according to a new report.
'Wicked' will make its streaming debut on New Year’s Eve, with deleted and extended scenes
Universal Pictures, the studio behind the hit film, announced on Thursday that “Wicked” will be available to buy or rent on December 31 on digital streaming platforms including Prime Video and Apple TV.