Fil-Canadians get tips to avoid scam, fraud

CANADA - Community partners in Toronto recently kicked off Fraud Prevention Month this March, with a warning to the general public that anybody can be a victim of scams and fraud.

The Toronto Police Service's Financial Crimes Unit and community partners were one in educating the public about telltale signs to avoid becoming a victim.

As new types of fraud have emerged because of technology, advocates of fraud prevention urged consumers to be vigilant.

The Crime Prevention Association of Toronto gave tips on protecting oneself from scammers, particularly for newcomers to Canada.

"Most of the time, like in banking, you have to be very careful of giving away your personal information because your PIN number, your card, is your security. We have close-knit communities but we don't do the door-to-door stuff anymore. So, someone might come to you saying they're from a charity or they want money or need money, and very often it's not the truth," said Janet Sherbanowski, executive director of the Crime Prevention Association of Toronto.

Community services officer Clarita Mendigoria advised the public not to be too trusting.

" You have to be very careful. You have to protect yourself by all means," she said.

For investors, industry experts warn against guarantees that sound too good to be true.

"If you're being told it's absolutely guaranteed to succeed, in the investment industry, it's something that is not coming. You have to be aware of that; be cautious of that. The other aspect is high-pressure sales tactics. If you're being told to decide now, this deal is going to be over tomorrow, that's actually a huge red flag," said Ian Strulovitch, director of Public Affairs of the Mutual Fund Dealers Association of Canada.

Allister Field, Enforcement Manager of the Ontario Securities Commission added, "Any opportunity that requires you to recruit family and friends is something that you need to be worried of. Many fraudulent schemes require many investors to keep the scam going. So, if there's any emphasis on bringing people into the opportunity, that's a red flag as well."

In the unfortunate instance that you smell something suspicious or have become a victim, law enforcers urge the public to report them without fear.

"If an incident has taken place, you can call the Canada Anti-fraud Centre and they will log that so that if anybody else has that same occurrence, that will then be a multiple occurrence and a police force will be dispatched to investigate that," said Sgt. Vance Morgan of the Royal Canadian Mounted Police.

source: www.abs-cbnnews.com

How to avoid being a victim of bank fraud

MANILA, Philippines – Philippine Deposit Insurance Corporation (PDIC) general counsel Atty. Romeo Mendoza on Monday stressed the importance of protecting bank depositors from financial crimes.

On ANC's "On the Money", Mendoza explained that bank fraud occurs when the bank itself dissipates the assets, which cause institutions to fail, thus making depositors lose their uninsured deposits.

He said among the common schemes involve the creation of fictitious accounts and when owners or officers use the bank as their “personal piggy bank.”

Mendoza said there are also instances when banks spend for construction projects that are fictitious.

“This is something we’ve seen several times, when they simulate expenses, they say in the books of the banks that they’ve renovated the premises or so many branches but actually no renovations were made. The construction contracts are fictitious but money went out,” he said.

To avoid being victimized by financial crimes, Mendoza said the most important thing is to “know your bank.”

He said depositors should be suspicious of banks that offer very high interest rates.

“One of the signs that we look out for are when there are very, very high interest rates, as in way, way above market rates…If a bank offers very high interest rates, how on earth can it pay off deposits?” he said.

“There’s also a concern about when the banks solicit deposits outside of their bank premises because sometimes, especially if they’re not authorized to do so, the deposits don’t go into the bank. It’s not recorded at all,” he added.

Mendoza also advised to keep accurate bank records like deposit slips and loan payment records.

Lastly, Mendoza said depositors to be aware that if you guarantee loans from the bank, your deposits will be used to set off the loans if your bank closes.

From 2008 to 2012, the PDIC closed 134 banks and paid out about P40 billion in deposit insurance.

Some of these were due to governance issues, mismanagement, or outright fraud or theft.

source: www.abs-cbnnews.com