Popular Scams
Health and Diet Scams
“Lose 10 pounds in 10 days.” “Get fit without getting off the couch.” “Easy weight loss – guaranteed!”
Often, advertisements promising this type of fast, easy and guaranteed weight loss are nothing more than a scam intended to shrink your wallet, not your waistline.
Whether you see these ads on TV, the Internet or hear them on the radio, the best thing to do is to use your best judgment. Be wary of emotional testimonials, “limited-time” offers or advice from “experts” that you’ve never heard of. Even those impressive before and after photos are often fakes.
Remember that for most of us losing weight and keeping it off takes hard work and discipline, not a magic “must-have” product.
Get-Rich-Quick Schemes
These scams try to sell consumers on making easy money.
Investment schemes, for example, promise extremely high rates of return with no apparent risk. They’re usually vague about the nature of the investment and focus mainly on the rates of return.
The Ontario Securities Commission (OSC) can help you if you think you’re a victim of an investment scam. For tips on legitimate investing and financial matters, visit the Investor Education Fund.
You should also be wary of advertisements selling products or services promising to reveal the secrets to making thousands, or even millions, of dollars. Remember, it usually takes education, hard work and dedication to become financially successful. The path to success doesn’t usually start with an infomercial or online pop-up ad.
Vacation Scams
You get an e-mail or phone call congratulating you on winning a “free” vacation. There was no contest, no entry – just a free trip.
Odds are this is a travel or vacation scam. Criminals may be looking for a way to get your credit card number by telling you that they need it so they can hold your prize. Or, you may be asked to pay high “service fees” or additional charges for “taxes.” The vacation prize may also not include items like high-priced hotel fees.
Always keep in mind that most unsolicited e-mail or telemarketing calls go to thousands consumers. You are probably just one of hundreds of people who won that “free” trip!
Pyramid Schemes
These scams start with one person or a few people (those at the top of the pyramid) who sign up others to invest in a fake business. These new members pay to join the scheme and are expected to bring in more people to invest in the “business.” Each time a new member pays to join, those higher up on the pyramid get a cut of the money.
At some point, every pyramid scheme reaches a point where no new investors can be found and the last investors, those at the bottom of the pyramid, lose their money.
Pyramid schemes are illegal in Canada. For more information visit the Canadian Anti-fraud Centre website.
