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The Internet may be the new, "virtual" capital of the scam universe, but there is still plenty of old-fashioned fraud being perpetrated. "Snail mail" is still a popular way enticing people. In one recent case, people across North America received fraudulent letters and checks supposedly from the "Ontario Lottery and Gaming Commission."

Recipients were told that they'd won $170,000 and were instructed to deposit an accompanying check for a lesser amount into their bank. Those checks were to refund a "service charge" of the same amount that recipients were told to pay when they called the "service representative" as instructed. The victims' checks would "finalize the payment process" and "register the claims," the scammer promised, reminding victims that they had already been reimbursed.

Needless to say, the deposited checks didn't clear, the $170,000 never showed up and the victims' payments were long gone. This scam can strike people of all ages and occupations.

E-mail as a gateway

Internet fraud is getting all the headlines. This article does not cover Internet fraud, which is being discussed almost everywhere, unfortunately to the exclusion of older scams that are falling off people's radar.

Today, many old-time cons are facilitated by e-mail contacts, and through the post, over the phone and even in person. Just getting hooked into a scam by e-mail doesn't make it "Internet fraud." What happens after you are contacted determines the kind of fraud taking place. Here is one example, a con that targets people who want to work part-time and/or from home.

"Payment agent" fraud

You see a job offer-newspaper, e-mail message, community bulletin board-promising a commission for "facilitating" money transfers. You may be given a phone number to call, or an e-mail, address but the story will be that the foreign-owned XYZ Company can't bank in North America for political or bureaucratic reasons.

XYZ hires you to receive money orders and certified checks from customers, and deposit them in your account. After withholding your commission (10% of $10,000 or more) you remit the balance by Western Union. Then the ax falls. The customer checks bounce. Western Union doesn't make refunds. You've been swindled. With people out of work, more and more will fall prey to this kind of con.

Old-fashioned frauds and cons

As Internet fraud continues to fill the newscasts, old-fashioned check fraud remains a giant problem. Billions of dollars are lost to these crimes every year in Canada and the U.S. The term "check fraud" covers a lot of ground. It could be as simple as someone stealing a pad of your checks and forging your name to them. Wholesale and retail businesspeople are still stung by counterfeit checks. Banks are scammed by new-account frauds as well as insider manipulations. Just about anyone can be victimized.

A number of scams have been around seemingly forever, and whether they make their way to you by e-mail or telephone, you need to be on guard. Here are some major ones:

- Inheritance letters: Victims are notified that some distinguished person in the Ivory Coast has left them 20 million dollars. This is a version of the classic lottery/sweepstakes scam.

- Dating: Victims meet someone at an online dating service or singles group who initiates a relationship, platonic or otherwise. Soon the new "close friend" asks for money-for surgery, a plane ticket home or past-due bills.

- Classic phone scams: Crooks still cold call people representing themselves, for example, as a "security firm" working for the victim's bank. The scammer starts verifying information, getting the bank name and account information, often from such trusting sorts as the elderly.

Back from the future

With all the talk about Internet fraud, "ID theft" is much more common in the real world than the virtual one. Researchers estimate that almost three-quarters of victims lose their ID to thieves, who drain existing accounts and create new ones, in three main ways:

- 33% from the loss or theft of a wallet, checkbook or credit card;

- 23% from in-store, mail or telephone purchases (stealing the card, an imprint, or getting the number and back-panel security code); and

- 17% from "inside jobs" (friends, relatives, employees).

The remaining methods are divided into three roughly equal groups. First, computer viruses, spyware and hackers; second, data "breaches" and database theft; and third, stolen paper mail.

Apparently, the old-fashioned ways are still working fine. The solution is the same in every instance. Be vigilant, guard your account information, don't trust strangers on the phone, maintain a healthy skepticism about all come-ons and "amazing" offers, use your head, stay informed and be prepared.

Be on your guard

Beware, too, as being drawn into some scams can get you in trouble. If you buy a new Nikon camera out of someone's trunk, you could be in possession of stolen property. If you pay into a Ponzi scheme, and do transactions and financial transfers with the perpetrators, you could be a suspect. Possession of counterfeit checks, and U.S. or Canadian postal money orders, is a crime. Sometimes criminals can draw you into a web that may not be "World Wide," but is big enough to get you tangled up with the authorities.

When you get involved in any kind of fraudulent activity, you may find that you need good, straightforward, no-nonsense advice. In some scenarios, you may need tough, tenacious representation. Just like the recommendations for steering clear of scams, cons and fraud, in any possible criminal situation you need to be vigilant, use your head, stay informed-and be prepared.

About the Author

Kostman Pyzer is a criminal defence law firm serving clients in the Greater Toronto area and elsewhere in the province of Ontario since 1983. Not all toronto lawyers are created equal. We are creative, experienced and hardworking. We pride ourselves on our aggressive representation of clients and our relentless commitment to success. Visit online today.

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