As we head into the holiday season, fraudsters are amping up their efforts to scam people out of their hard-earned money.
Community Policing Office (CPO) Coordinator Marlene Jones said that scams involving gift cards have become rampant recently, and that this particular method has been used in Merritt already. In larger centres, large retailers are reporting that they are seeing several scam victims every day.
“It’s concerning to me that people are getting caught by this, and it’s very concerning that it seems to be increasing,” said Jones.
Scammers will frequently contact you by text, telephone or email, posing as a government official or tech support or someone else in a trustworthy position who will inform you that you have an unpaid bill or obligation to provide money. This will sometimes be accompanied by threats of jail time or audits or repossession.
“They will tell you that the bill can be paid by gift card,” explained Jones.
“But they’ve even increased it now so that they are telling you that you can pay by gift card, but that when you go to the store, the staff might even try to stop you from doing this, and don’t let them. So, people go to the store and actually argue with the staff, and they say to them, ‘they told me you were going to try to do this and I’m not falling for it’, so these things evolve.”
As convincing as the scammers may be, it is important to note that under no circumstances will a legitimate company or representative for the government ask you to pay your bills with gift cards. When you pay your monthly bills, such as those you receive from ICBC, BC Hydro, FortisBC and others, they do not request, nor do they accept, payment by way of gift cards.
“Nobody is asking for a third-party gift card,” said Jones.
Cranbrook RCMP have put out a statement to this effect, noticing the scam popping up in their own and neighbouring communities.
“No government agency or reputable company will ever ask someone to pay with gift cards in lieu of their fines.”
So, how does buying a gift card in Merritt translate to cash for scammers who may be in another country or even on another continent?
“They convince you to scratch the little code on the back and either give them the code or take a picture of the code,” explained Jones.
“And once you give them that code, you have now given them the money. They don’t physically need the card. As soon as you give them that code, the money is gone, and you do not have a good chance of getting that back.”
Unlike scams involving credit cards, you are not able to dispute or cancel the payment.
Fraudsters may also request Bitcoin as an alternative payment form.
“That’s a concern too because getting money back on Bitcoin doesn’t happen a lot.”
According to a Dec. 2020 analysis conducted by the Federal Trade Commission (FTC), gift cards have topped the list of reported fraud payment methods every year since 2018, during which time Canadians have reported losing a total of nearly $245 million. About one in four people who have lost money to fraud say they paid with a gift card.
Businesses are encouraged to help prevent these types of scams by setting limits on gift card purchases. Some have instated a new policy where gift card purchases over $500 have to be processed by a manager. This dollar amount can certainly be lower, depending on the retailer.
“We like that, we encourage that,” said Jones.
“Just keep in mind that that person may have been coached to tell you, ‘I’m onto you, I knew you were going to try to stop me’, that person may be so groomed that they may still not believe you, and so have a plan in place for that.”
People should also be wary of other scams, such as being contacted by someone who tries to convince you that they are in contact with a grandchild, for example, who has encountered an emergency or needs immediate funds.
Seniors, unfortunately, remain a consistent target.
Romance scams are also on the rise. Perhaps because more people are at home, feeling lonely or a loss of connection due to the COVID-19 pandemic.
“Even though you have seen an image on a computer, and you’ve gotten emails and phone calls, or if that person has only promised to come to Merritt but has never come to Merritt, or says they’ve been trying to get here but things keep getting in their way, and you’ve never actually physically touched that person, you do not know that they exist,” Jones cautioned.
If you are uncertain whether you have been contacted by a legitimate individual, company or agency, Jones invites you to reach out.
“They can call us at Community Policing, at 250-378-3955 or drop into our office and have a discussion with us,” said Jones.
“We’re not going to judge, we’re going to listen, we’re going to give you our opinion.”
Another option is to discuss the situation with your bank, as they are familiar with most scams. The Canadian Anti-Fraud Centre also has extensive resources, which are available on their website or by phone: 1-888-495-8501.
