Beware of unusual payment methods

Hey there, time traveller!
This article was published 01/03/2023 (1127 days ago), so information in it may no longer be current.

Unusual payment methods, are exactly that – unusual. When you are asked to provide an unusual form of payment you should be very cautious about proceeding.

There are numerous scams out there. Some target personal information, some seek to install malware or viruses on your cell phones or computers and some try to gain access to your email or social media accounts. But the vast majority of scams target one specific thing – your money.

In 2022, Manitobans lost over $10 million to fraud and worldwide it is a multi-billion dollar industry. The vast majority of scams have at least some segment occurring online, and the people perpetrating these scams can be anywhere in the world, and once they get your money they have to find a way to gain access to it.

These scams can be disguised as investment opportunities, whereby the scammers pose as legitimate businesses or people, and can be quite persuasive. The easiest way for them to gain access to your money is to have you, the victim, make payments or transfers using non-traditional methods. If you are asked to provide a non-traditional form of payment, take the time to ask why. Most victims say, in hindsight, that they should have seen the red flags.

Some unusual payment methods used include:

• Making a payment using pre-paid gift cards. Typically, the victim is asked to share pictures of both the gift card and the scratched off pin code, located on the back of the card. That’s all the information someone needs to use these cards;

• Sending large amount(s) of cash by mail or courier. Often the victims are told to lie about the contents of the package to courier staff;

• Sending an e-transfer to a third party or being asked to send the transfer meant for a business to an individual;

• Sending a wire transfer overseas;

• Being directed to purchase cryptocurrency as a form of payment.

The important takeaway?

Take a moment and ask yourself if the payment method makes sense. If you’re asked to use a form of payment that you don’t understand, ask someone you trust, don’t simply take directions from the person seeking payment. In a majority of scams the perpetrator tries to rush the victim, creating a sense of urgency so you don’t take that extra time to think.

Educating yourself and your loved ones is one of the most important ways of protecting yourself.

The Canadian Anti-Fraud Centre website is a valuable resource: www.antifraudcentre.ca