Witless Bay (July 7, 2020) – The Ferryland RCMP issued a warning of a new scam that targets business owners who are selling pre-paid Visa cards. The Mounties published the scam alert following a report from a convenience store in Witless Bay. The business lost over $5,200 to the scammers. The Canadian Anti-Fraud Centre recommends businesses to educate their employees at every level to be wary of unsolicited calls.
The Ferryland RCMP warned businesses who are selling pre-paid Visa cards of a new scam in a press release.
Phone scam targeting businesses
The Ferryland RCMP received a report about a phone scam from a convenience store in Witless Bay on June 2. The business owner described that a scammer called the store claiming that he would call from corporate operations, police said.
The scammer told the cashier that there was a virus within the Atlantic region pre-paid system. During the call, the scammer provided information including codes that was convincing of his knowledge of the system, according to the Mounties.
Subsequently, the cashier followed the fraudster’s directions through several phone calls. Over the next few days, the scammer was able to cash in over $5,200 from the activation of pre-paid Visa cards from the business. The RCMP said that the investigation is ongoing.
Retail fraud relating to pre-paid products
Fraudsters use several types of consumer and retail fraud relating to pre-paid products. This scam comes in various forms and fraudsters trick their victims into believing their credibility. The rogues often use spear-phishing methods by pretending to be from legitimate sources.
The outcome of the scam is always the same: The fraudster is asking the victim for the PIN, which is the critical number on the voucher or the code scratched off on the back of the card. As soon as the rogue received this number, the money is gone. This information is equivalent to cash.
The Canadian Anti-Fraud Centre recommends businesses to educate their employees at every level to be wary of unsolicited calls and to compile a list of business contacts to help employees identify which contacts are real and which are not.
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