Fraud Awareness Fact Sheet for Small and Medium-Sized Enterprises

What should I do if I receive an invoice for office products that I did not order?

Deceptive mail and telemarketing operations prey on unsuspecting businesses and bilk them out of millions of dollars every year. If you receive an invoice for products you did not order, do not send payment. If the product arrives, do not open or use it. If possible do not even accept delivery. Contact the sender and ask them to make arrangements to pick up the product and inform them that if they don't do so by a certain date the product will be destroyed.

Sending phoney invoices to promote the sale of a product or business interest is a criminal offence under the false and misleading representation provisions of the Competition Act, and is punishable by a fine and/or jail time.

A telemarketer tried to sell me a product by saying that my company had already placed an order for the product. Is this a scam?

When a telemarketer implies that they have an established business relationship with your company and that products had already been ordered, or they are just calling to confirm business information for accuracy of delivery, it is often part of an “assumed sale” scam. Deceptive telemarketers use this tactic to make an unsuspecting employee of a company think the product in question has already been ordered by them or someone else in the company. They rely on glitches in the accounting and internal communication systems to get the employee, who is often busy with other tasks, to accept the order over the phone.

Never make on-the-spot decisions about offers over the phone if you are not certain about all the facts. If you have no record of your business ever placing an order with the telemarketer, do not agree to the sale and do not send payment.

Using the assumed sale approach during a telemarketing call to promote the sale of a product or business interest is a criminal offence under the deceptive telemarketing provisions of the Competition Act, and is punishable by a fine and/or jail time.

I received an invoice for listing my company’s details in a business directory. Is this legitimate?

Deceptive telemarketers often use the assumed sale technique described above to sell office products or business directories. Sometimes however they just send out an invoice with or without the product in question. If you receive a suspicious-looking bill or invoice for a listing in a business directory or any product that asks you to send money, particularly to a postal box, it could be a phoney invoice scam.

Before paying any invoice, check with the billing company or otherwise verify that the product was ordered and received and that the invoice is real. Do not pay for a product that you did not agree to purchase.

Scammers who attempt to steal money from businesses in this manner are violating the false and misleading representation provisions of the Competition Act and can be fined and/or sentenced to jail time.

My company received an invoice that appears to be from a well-known association requesting payment for membership renewal. Should I send payment?

Businesses should be wary of mailings that appear to be from well-known associations or businesses requesting payment for memberships or services ordered. These mailings, in the form of bills or invoices, often use names that are similar to existing associations or businesses to which your company may belong or do business with. However, it could be a scam.

As with any other invoice, verify before paying it. If you have any doubt call the association or business at a phone number you know to be accurate to verify the legitimacy of the organization and the invoice.

Scammers who target businesses by pretending to be someone they are not are violating the false or misleading representation provisions of the Competition Act.

I received an invoice for the renewal of my company’s Internet domain name that appears to be from an official Internet registry or agency of the Government of Canada. Is this legitimate?

If you receive a notice that your Internet domain name is about to expire and you need to pay to renew it, examine the notice carefully before deciding to pay. This may be a deceptive mail scam. The Government does not provide Internet domain name registration services and any invoice for such services that appears to be from a government agency is likely a scam.

Verify that any invoice is from your regular supplier and that your company is in fact an existing customer or wishes to become a customer of the Internet registry asking for payment.

Sending out such phoney invoices is a violation of the false and misleading representation provisions of the Competition Act.

How can I protect our customers from ID Theft?

Thousands of Canadians fall victim to identity theft every year. Knowing about fraud prevention not only protects you and your customers – it also protects your business by boosting confidence in the marketplace.

Store electronic customer data securely by using updated security software, encrypting confidential data, and saving data on networks instead of hard drives or disks. When disposing of sensitive information, use scrubbing software or destroy hard drives and don’t forget to shred all hard copy documents.

Who should I contact if confidential customer information goes missing?

Contact:

Affected customers or businesses

Credit agencies

• Equifax: 1 800 465-7166
• TransUnion: 1 877 525-3823

Law enforcement

• RCMP – Reporting Economic Crime On-Line: www.recol.ca
• PhoneBusters: 1 888 495-8501

Who should I contact if my business is targeted by a scam?

Companies who suspect they have been the victim of deceptive business practices or who want information on the application of the Competition Act should contact the Competition Bureau’s Information Centre.

Toll-free: 1 800 348-5358
National Capital Region: (819) 997-4282
TDD (for hearing impaired): 1 800 642-3844
Fax: (819) 997-0324
E-mail: compbureau@cb-bc.gc.ca
Web site: www.competitionbureau.gc.ca

On-Line Complaint/Enquiry Form

News Releases & Information Notices

Competition Bureau Investigation Leads to Charges Against Business Directory Telemarketers

Competition Bureau investigation leads to jail time for phoney invoice scam

Internet Registry director fined for bogus invoice scam

Competition Bureau investigation results in sentencing for phoney invoice scam

Competition Bureau Investigation Leads to Criminal Charges Against Telemarketers of Toner Supplies

Competition Bureau warns association members to be cautious when renewing their memberships