419 Letters: 419 letters are the term given to the letters and e-mails asking for money to perpetuate a scam. These are also referred to as advance fee letters. 419 is the section of the Nigerian Criminal Code for fraud offences. Most letters imply a sense of urgency and offer profits in the millions of dollars. See also Nigerian Letters.
900 Scams: The 900 scams are a variation on a prize pitch scheme. The potential victim is contacted, often through the mail, announcing that they have just won a large prize; either cash, a car, a boat, or a vacation.
The offer usually states that a brief phone call is required to collect your prize, and the cost of the call per minute is around $4.99. The victim is instructed to call a 1-900 number in order to find out how much money or what prize they have won. Most of these numbers are linked to a computerized voice response system, and the length of the call can last up to ten minutes without you realizing it. Once the call is completed and your information is confirmed, you may actually get a prize in the mail. Unfortunately, the prize sent is usually worth one or two dollars and you have lost up to $50.
Actus Reus: This is a Latin term loosely translated as “guilty act” or “wrongful act.” It refers to all of the components of the crime, except for the state of mind, or mens rea, of the culprit.
Advance (as in Advance Fee): The requirement for the victim to pay fees prior to obtaining the benefit, credit, or loan.
Advance Fee Loans: These are promises of a loan even if your credit is bad or you have no credit at all; usually advertised in the classified sections of newspapers, magazines, etcetera. Just because an ad is paid for, it is not the responsibility of the media to verify the legitimacy of the ad.
Affidavit: An affidavit is a sworn, legal document that essentially declares what you are saying is the truth. It may be entered in court as evidence during any proceedings. Most financial institutions have a standard form of affidavit and a commissioner of oaths present to have you swear to the document. An affidavit is the same as a statutory declaration. Often, an affidavit is required before an investigation will commence.
Black Money: Black money is the term used to describe money that has been chemically treated to disguise it from authorities by turning it black. Smuggling money into and out of a country is illegal, and the fraud victim in this case has agreed to become part of this criminal conspiracy.
This scheme has been around for a long time. Generally, one or two of the bills placed on top of the bundles is legitimate and may even be covered with black watercolour paint. This is “washed” by the fraudster with the special chemicals and the bill is revealed. The victim is convinced that the remaining bills have been treated the same way and agrees to purchase the money and ship it to his home country. He is then contacted to purchase the chemicals for an additional fee.
In theory, the bills are treated with a chemical that completely covers any trace of the printing on the paper. The money is then bundled into stacks and put into a suitcase, box, or other container for shipping. Once the money clears customs and arrives at the intended location, the money is then treated with another chemical bath to dissolve the concealing chemicals and turn it back into usable cash.
It does not exist. Although this may be seen in movies and television, those were simply special effects. There is no such thing as black money or treated money.
Boiler Room: A term used to describe the telemarketing office where the phone calls originate. Boiler rooms range in size from ten to over one hundred phones and people. The amount of calls generated, the pressure, and high energy that the manager of the boiler room instils in his or her people and the constant need to meet goals contribute to the name.
Certified Cheque: This is a cheque issued by a financial institution verifying that the amount the cheque is written for is available.
Charity Schemes: Unscrupulous criminals will often take advantage of natural disasters or tragic events to defraud people out of their money. They will pose as canvassers for a charitable organization and ask for a donation. Some of these fraudsters will invent names that sound similar to a legitimate organization to avoid a civil suit as well as criminal charges, if caught. Others will even have props, such as photocopies of tax receipts, to assist in carrying out their scheme.
Conditional Discharge: A sentence imposed on a person found guilty of a crime where, upon completion of actions or conditions imposed by the court, there is no criminal record relating to the offence.
Corporate Registry: Corporate Registry is a database of registered corporations for a given province in Canada. The Registry maintains a database showing date of incorporation and the names and addresses of directors and shareholders. The Registry also provides historical information on corporations no longer in business.
It should be noted that the Corporate Registry office does not act as an enforcement agency, provide legal counselling services, supervise the conduct of corporations or non-profit organizations, nor act as a mediator in the case of internal disputes.
Credit Card: A card issued through a financial institution to allow financial transactions.
Credit Card Information: The electronic data stored on the magnetic strip of a credit card or other card device.
Debit Card: A bank card that allows you to withdraw money directly from your banking accounts.
Drop Box: A location where the fraudster tells the victim to mail the cheque or money as part of the scheme. Drop boxes can be leased mail boxes, storage facilities, or offices that have no physical tie to the culprit.
E-Mail: E-mail is an electronic form of communication, which can contain letter-type correspondence, graphic images, or any other data file. E-mail is similar to traditional letter mail in that it is addressed from one individual to another.
E-mail messages usually contain a header, which gives the screen name of the sender, the identity of the Internet access provider, and the return address on the Internet of the individual who originated the message. Depending on how the e-mail software is configured, all or only part of the header information may be displayed to the user.
Internet: The Internet is a worldwide computer network, which connects computers and allows for communications and the transfer of data and information across international boundaries.
Communication via the Internet can take place through many different media, such as accessing a website or sending and receiving electronic mail between computers.
A website is a site (location) on the Internet. Each website contains a home page, which is the first document users see when they enter the site. The site might also contain additional documents and files. Each site is owned and managed by an individual, company, or organization.
Internal Fraud: Internal fraud occurs when employees within a company commit the act of fraud.
ISP and IP Address: An Internet user accesses the Internet from a computer network or Internet Service Provider (also known as an ISP) that connects the Internet user to the Internet. The ISP assigns each user an Internet protocol number, also known as an IP address.Each IP number is unique in that no two computers on the Internet may have the same IP address at any given time.
K.G.B Statements: The term “K.G.B. statement” results from a decision from the Supreme Court of Canada in February 1993, titled R v K.G.B. This decision affected the way in which police officers and prosecutors can deal with adverse witnesses. In the past, a witness who would recant his statement, or refused to testify, was subject only to cross examination by the Crown in an effort to discredit him or her. The previous statement could not be used, as this would violate the hearsay rules of evidence. This decision allowed the admissibility of a previous statement, provided that certain conditions were met.
Condition one dealt with the reliability of the statement. No longer were an officer’s paraphrased notes, or a written statement by the witness, enough. The statement must be taken under oath, solemn affirmation, or solemn declaration and the witness must be forewarned of the legal consequences of lying under oath. A videotaped recording of the interview should be made which would allow for the observation of the witness, as if in a courtroom setting.
The second condition would address the necessity of using the witness statement. In previous Supreme Court decisions, necessity usually meant the unavailability of the witness. In K.G.B. the Court deemed that necessity isn’t restricted to the availability of the witness and used the guideline of the expectation of getting evidence of the same value from the same or other sources. Therefore, if the witness is recanting or refusing to answer questions, the necessity of using the previous statement is satisfied.1
Lien: A Lien is a legal claim against someone’s property, or the right to keep or sell someone’s property to recover a debt.
Mass-Marketing (see Telemarketing)
Mens Rea: The Latin term translated as guilty mind. Mens rea, in conjunction with actus reus, must be present for most criminal charges.
Mooch List: A derogatory term for list of names of people for telemarketers to contact. In fraudulent telemarketing, most of the people on the list have been victimized before and will most likely be taken in by another scam again. Mooch lists are bought and sold to fraudulent telemarketers.
Mortgage Fraud: A type of real estate fraud that generally targets the lender by fraudulently inflating the value of real estate property.
Multi-Level Marketing Schemes (see Pyramid Schemes)
Mutual Legal Assistance Treaty (MLAT): Mutual Legal Assistance Treaties (MLATs) were established through the 1988 U.N. Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, and were consistent with the definition of treaty found in the Mutual Legal Assistance in Criminal Matters Act (Bill C-58). Law enforcement agencies informally share investigative information across the border within the legal limits of both countries, and much information can be handled in this way. The legal limits include the constitutional, privacy, and security safeguards in place in both countries. The Mutual Legal Assistance Treaty between the United States and Canada and domestic legislation in both countries provide a framework for each country to obtain information for the other on formal request. MLAT requests, for example, form the basis for search warrants allowing the recipient to obtain the evidence requested.
Formal MLAT proceedings can consume valuable time and resources for those at both ends of the process. Offenders can sometimes delay proceedings or get information about the evidence being gathered against them by challenging MLAT requests. Some forms of assistance are not presently available under the MLAT and domestic legislation. There appears to be uncertainty in the law-enforcement community about when MLAT requests are necessary and when they are not, which can result in using them when they are not needed.2
Nigerian Letters: The term applied to letters, e-mails, and faxes asking for assistance in taking money out of a country. These types of scams did not necessarily originate in Nigeria, but with the growth of the Internet and e-mail, the initial flood of letters initially had a Nigerian connection. These letters are also referred to as advance fee letters or West African letters. The originator of the letter can now be located in Nigeria, Amsterdam, or anywhere else in the world.
Pinhole Camera: A small camera placed above a false PIN pad used to record a fraud victim entering their personal identification number. Some cameras can be wired into the PIN pad or can be used remotely to record the data entered.
Pitch: The offering or type of scheme such as investment pitch, recovery pitch, or travel pitch.
Ponzi Schemes: A scheme targeting investors to put money into an investment that has no real or limited product.
Prize Pitch: A prize pitch is a scheme where the fraudster tells the victim that they have been selected to win a prize or have a choice between several luxury prizes such as vehicles, cash, or jewellery. The victim must pay a processing or handling fee prior to obtaining the prize. The victim fails to be awarded the big prize but is compensated with a smaller, cheaper prize. In a legitimate contest, you do not have to purchase a product to qualify for a prize.
Property Offenders: Generic term to mean criminals that commit crimes in relation to property. These crimes include theft, break and enter, damage to property, etcetera.
Probation: A penalty imposed by the court that requires a guilty offender to abide by certain conditions. Probation can be part of a larger sentence and can last up to three years; however, it does not include serving time in jail.
Pyramid Schemes: Also known as multi-level schemes. This scheme is based on recruiting new investors to insert new money into the scheme, with the promise that as more investors are recruited you move up the pyramid to where you eventually become the beneficiary of the investments. Investors recruit new investors who put their money into the scheme, but no new money is created by the product or company. The only ones to benefit are the originators of the scheme, while those at the bottom of the pyramid lose their money. Before investing in a multi-level company, take the time to do your research. Remember, all pyramid schemes are illegal in Canada.
Real Estate Fraud: The term used to encompass two types of fraud involving real estate: mortgage fraud and title fraud.
Recovery Pitch: If you have been victimized through a previous scheme, you may be contacted by someone offering to recover your lost money. This will usually require some cash from you to help defray the costs to your “saviour.”
Restitution: Compensation or re-payment for a loss.
Robbery: The theft of property with the addition of violence or threat of violence.
Scripts: Scripts are the prepared offering that the telemarketer will use once he/she has made contact. They are designed to catch your attention and to convey as much information in as short a space as possible. In fraudulent telemarketing, they are also used to stop the telemarketer from deviating too much and providing too much information.
Shoulder Surfing: A generic term where the fraudster, or an accomplice, surreptitiously watches a victim enter their personal identification number when completing a debit card transaction.
Spam: The term used to refer to the unsolicited e-mails and purchase offers made on the Internet.
Spoofed: The term used to mean a false website of a legitimate company. The site will look valid, but may have small flaws, such as spelling mistakes. The site generally requires the victim to enter personal information in order to verify that the company has the correct data.
Sucker List (see Mooch List)
Skimming: The term used to obtain information and data from the magnetic strip of a credit card or other card device.
Skimming of Cash: The theft of a small amount of cash from a larger fund. Usually the amount is small enough to go undetected.
Telemarketing: The generic term for mass marketing. Telemarketing is used by legitimate companies and organizations or by fraudulent operators.
Theft: The unauthorized taking of another person’s property without consent. Theft does not involve violence.
Title Fraud: A type of real estate fraud that generally targets a home owner by transferring title of property or imposing a lien against the property.
Travel Schemes: These are similar to a prize pitch scheme. By filling out ballots at a trade show you may be contacted offering a free vacation. They will ask you to provide your credit card number or cash to hold the vacation for you. However, the vacation is not forthcoming. The information that you provide may also be sold and you may end up on a “mooch” or “sucker” list. These are not the same as agreeing to attend a seminar for a vacation time-share where you spend a weekend at a resort if you listen to a sales presentation.