Knowing the signs can save headaches
Hannah Yakobi
Sun
Richard Saxton, an information technology executive, got a call offering a free cruise that turned out to be fraud.
When Richard Saxton got a phone call a year ago while relaxing at home with his wife, he was pleasantly surprised.
Saxton, an Ottawa executive, heard a ship horn in the background and an automated announcement saying he had just won a cruise.
He was connected to a company representative.
It was an all-expenses-paid, week-long cruise for two, from Miami to the Bahamas and back.
“The man on the phone asked if I was interested,” remembers Saxton. “And I said, ‘Of course, I am!’ “
Unfortunately, it wasn’t a prize at all, but a travel scam aimed at getting Saxton’s money.
Thousands of Canadians fall victim to mass marketing fraud every year and government, business and travel officials agree that it is very important to be aware of such fraud.
“The vacation and travel scam is any false, deceptive, misleading solicitation, in which an advance fee is required to secure and hold a vacation,” says Cpl. Louis Robertson, co-ordinator of criminal intelligence for the Canadian Anti-Fraud Call Centre, also known as PhoneBusters.
PhoneBusters deals with Canadian fraud cases, as well as others around the world that have a link to Canada.
Robertson says they receive about 145,000 calls a year, and between 30,000 and 35,000 e-mails a month from concerned Canadian and American consumers.
In a typical scam, “administration fees” may vary.
For instance, Saxton was asked to pay $500 in port fees. Having gone on cruises before, he knew that port fees are included in the cruise price. He was also told he had filled out a contest ballot, which he didn’t.
Robertson says these signs are a warning.
“All people see is, ‘I’m in Saskatoon, it’s -45 C, a guy is calling me out of the blue, stating that I’ll be spending the next two weeks in the Dominican Republic. And all he wants is $500? Yes!’ “
“If you’ve won something in Canada, there is no fee that has to be paid,” adds Dermot Jardine, assistant deputy commissioner for the Atlantic region of the Competition Bureau of Canada.
“Under our legislation, we have a section that deals with misleading information and misleading advertising, and also deceptive telemarketing, and deceptive notice of winning a prize. The telemarketing provisions and the deceptive notice of winning a prize are both criminal offences. The misleading advertising can be either criminal or civil.”
According to Jardine, fraudulent travel activity can also result in the direct loss of consumers, an anti-competitive effect on the travel industry, and a negative message about telemarketing.
For instance, Saxton’s callers were generally unpleasant. When Saxton said he would pay any port fees at the port, he was transferred to the agent’s supervisor, who was quite aggressive and got really upset, before saying “never mind” and hanging up.
“It was frustrating,” says Saxton, who got the same phone call three weeks later.
“I was a bit angry at the fact that my wife and I almost fell for it.”
Unlike others, Saxton was lucky to figure it out. Robertson says his worst case was a New Jersey woman with Alzheimer’s disease who was in a seniors’ home.
She lost $750,000 by forwarding money to Toronto on a monthly basis. Her family had to move her because they had no money left to pay for her supervised care.
One way to avoid such scams is to verify the agency through the Association of Canadian Travel Agencies’ website. Only accredited agencies can become its members, and ACTA represents over 3,000 companies.
“We get about 300,000 hits on our website every month,” says Mississauga-based Donavon Gaudette, ACTA’s communications manager.
“We are also constantly updating what travel watches are being issued by the federal government, so people use us as the source of information.”
Checking if the agency is registered with a provincial consumer protection authority can also be useful. For instance, in British Columbia, companies register for a licence number with the Business Practices and Consumer Protection Authority of British Columbia.
“If a consumer purchases travel services through an agency that is not licensed with the BPCPA, then the transaction is not eligible for protection under the Travel Assurance Fund,” says Sarah Head, BPCPA’s public relations manager.
PhoneBusters and Competition Bureau Canada can also be called to report a scam.
Reporting fraud is a responsible approach, but Canadians need to be cautious. Robertson says that if the credit card is charged, “it will be between you — with no protection at all — and the bank.”
Saxton, who never gave the caller his credit card number, says he is now very skeptical of such “prize announcements.”
“Whenever anybody calls and starts some kind of a spiel, I just hang up.”
Ten expert tips to detect a scam:
1. A prize is free. There are no fees associated with it.
2. The caller should not sound too excited or have a sense of urgency.
3. If it sounds too good to be true, it probably is.
4. Don’t send money to somebody you don’t know. Always pick a reputable agency that you are familiar with and one that is local.
5. Verify that the company is, in fact, registered with their provincial organization or has a legitimate affiliation.
6. Refer to Better Business Bureau to determine if there have been complaints made against the company.
7. If you are thinking of going ahead with the offer, bring it to the local travel agent to get some advice.
8. Request any information in writing, such as cancellation and refund policies.
9. If someone is calling you, you can’t be sure where the phone call is coming from. Get their phone number and address. This can help verify if the company is legitimate.
10. You do not win anything unless you enter a lottery, a promotion or a game of chance.
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