Scammers are making the most of the global economic downturn by taking advantage of people’s emotions and pitching investments for quick profit and advance-fee loans, the Better Business Bureau (BBB) warned yesterday in Vancouver.
“Economic-downturn scams are a big issue this year,” said Lynda Pasacreta, president and CEO of the BBB for mainland B.C. yesterday as she unveiled the top 10 scams in the region.
“A growing number of consumers have been contacted by companies offering everything from small business cash advances to investment opportunities.”
Pasacreta said the pitches are often made via mass e-mail. In 2008, 3,000 British Columbians contacted the BBB about the legitimacy of loan offers. About one-third of those involved advance-fee loan brokers.
Another economic-downturn scam is the investment club, which she called “thinly veiled pyramid schemes,” offering quick profit.
“Many people go to these meetings invited by friends and family. In tough times, who isn’t looking to borrow a little cash?”
The bureau’s top 10 scams this year also included cure-all health products, eco “greenwashing” and spoofing attacks.
Greenwashing is the false marketing of products that claim to be environmentally friendly or green.
Spoofing attacks are when a person receives an e-mail from a bank or the Canada Revenue Agency and are tricked into passing along personal information.
Pasacreta said 1.7 million Canadians were the victim of identity theft in the past year.
TOP 10 SCAMS
1) Economic-downturn scams
2) Home repair ripoffs
3) Business opportunities
4) Bogus online ads
5) Cure-all health products
6) Guaranteed vehicle brokers
7) Prize offers
8) Bogus cheques and overpayment schemes
9) Eco cons
10) Spoofing attacks
