NEWS RELEASE
GUELPH POLICE SERVICE
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Today's 'Fraud Friday' is about lower interest scams and loan scams.
How it works:
For lower interest scams, scammers call and make an offer to reduce interest rates on your credit cards or line of credit. Personal information is requested such as SIN, mother's maiden name, date of birth and the credit card number with the expiry date of the cards you want reduced.
In the end, you are not provided with a lower interest rate and you are now vulnerable to identity theft.
For loan scams, scammers create websites and advertise "Guarantee" loans. People who apply (you) are approved and are provided with a contract displaying the lending agreement, including: interest rate, term, amount, borrowing cost, etc.
Just one catch - to obtain the loan, you are required to pay an upfront fee. You are asked to transfer funds using email money transfer or by using a money transfer service such as Western Union or MoneyGram. Additional funds are always requested to cover a preferred lending rate, increased loan, transfer fees, taxes or even an anti-terrorism certificate.
Warning signs – how to protect yourself
- Third parties cannot negotiate the interest rate that you hold with your bank
- Never send funds to secure a loan
- Ask for a call back number and conduct open source searches to verify the lending company is legitimate
- Never share personal information over the telephone
- Do not send funds to strangers
- If it sounds too good to be true, it probably is
If you think you have been a victim of a scam, contact your financial institution immediately and local police. You can also report it online to the Canadian Anti-Fraud Centre.
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