Speaking Notes for Sheridan Scott Commissioner of Competition

Competition Bureau

Launch of Fraud Prevention Month

March 1, 2007

(Check against delivery)

I'd like to start by introducing the other speakers sharing the stage with me for the first time, and then I'd like to take a moment to talk to you about Fraud Prevention Month.

Joining me this morning are:

• Privacy Commissioner Jennifer Stoddart, and
• RCMP Assistant Commissioner Raf Souccar

Whether it's Internet or mail fraud, deceptive telemarketing or identity theft, fraud is a serious problem. It can steal Canadians' money, their identity and even their self-respect. Law enforcement agencies cannot investigate, press charges and prosecute scamsters unless Canadians help us by reporting these crimes.

To give you an idea of who we are, the Fraud Prevention Forum is a concerned group of private sector firms, consumer and volunteer groups, government and law enforcement agencies, who are committed to fighting fraud aimed at consumers and businesses.

In 2004, when we launched the first Fraud Prevention Month campaign, we had just 22 members. Today, we have over 80 members.

Throughout the month of March, Forum members will hold community fraud awareness events, broadcast public service announcements and distribute educational material, all in an effort to educate consumers and businesses on the dangers of fraud, encourage them to report fraud, and make Canada a hostile environment for perpetrators of fraud.

Fraud in all its forms continues to affect the lives of everyday citizens. It undermines Canadians' confidence in the marketplace.

It is crucial to reiterate the importance of educating the public to recognize and report fraud -- not just during Fraud Prevention Month, but all year long.

Contrary to popular belief, fraud does not affect only the vulnerable in our society. Everyone is at risk of becoming a victim, regardless of age, education or income.

In the fight against fraud, it's important for Canadians to do their part -- Recognize the signs .

• If someone contacts you by mail or phone to say you won a big lottery prize, but that you must send money before you can collect, it's fraud .
• If a caller offers you a low-interest credit card but you must send money before your card can be activated, it's fraud and you will lose your money .
• If you are asked for credit card or bank account numbers, or copies of personal documents -- but you have nothing in writing -- chances are, it's fraud .

If deals like these sound too good to be true, they probably are. Hang up the phone, do not respond to questionable contests by mail, shred unwanted personal documents and call PhoneBusters, the Canadian Anti-Fraud Call Centre.

PhoneBusters gathers evidence, identifies new trends and alerts law enforcement in Canada and abroad. By reporting, you can prevent others from becoming victims and help put an end to fraud.

In 2006, the Bureau received nearly 15,000 complaints related to mass marketing fraud. The majority of these complaints -- 46% -- were received during the months of March through May. This tells us that our campaign message -- encouraging Canadians to report fraud -- is working.

Of those complaints, over 1,200 were in relation to deceptive telemarketing. Well, I'm pleased to announce that Bureau investigations in 2006 led to 175 charges against individuals and corporations involved in a number deceptive telemarketing operations.

The most alarming number of complaints to the Bureau last year was 8,400 and these were in relation to people receiving a phoney cheque or prize notice. Included in your media kits is an example of what these look like. You may in fact have received one yourself.

I can't stress enough how important it is to avoid being duped by this sort of scam. As the saying goes, you can't win if you don't play.

If you receive a letter from a lottery corporation, which states that you are required to cash an enclosed cheque to pay the tax and clearance fees in order to receive your prize, chances are it's a scam. Legitimate lottery and sweepstakes administrators never charge fees to deliver your prize.

Fraudulent cheques are also used by scammers to commit other frauds such as: phoney employment opportunities and fake sweepstakes. The bottom line is that consumers should be wary especially if asked to wire money.

New scams are being invented daily. Scam artists are up-to-date and well-organized. They use the latest trends and sophisticated techniques; they have limitless imagination.

That is why Canadians need to be more vigilant in the fight against fraud. Law enforcement agencies cannot investigate, press charges and prosecute scam artists unless Canadians report these crimes.

Better yet, let's recognize potential signs of fraud and stop these scamsters in their tracks before they steal your money, your identity and your self respect.

Thank you.