The Eyes and Ears of Rural Alberta

Launch of Fraud Awareness Month

The Competition Bureau has a strong interest in fraud prevention. We work to support a dynamic, healthy, innovative and competitive marketplace in which Canadians can enjoy the benefits of competitive prices, product choice and quality services, and fraud undermines Canadians' confidence in the marketplace.

Today, with the help of over 35 partners, we are launching a major international effort to curb fraudulent activities by increasing fraud awareness across Canada and around the world.

You will hear how each and every business and consumer can fall victim to fraud, how this criminal activity has infiltrated the lives of ordinary Canadians, and about the resources available to Canadians so that they can recognize, report and stop fraud.

Once we have heard from all of our speakers I will open the floor up to questions from the media.

As many of you may know, about a year ago I stood before you representing the Competition Bureau and 20 or so organizations to launch a fraud awareness campaign, the first international effort of the kind to educate victims in Canada, the United States and the United Kingdom. That "Recognize It, Report It, Stop It" campaign was well-received, and we are continuing to build on that early success. In fact, thanks to that campaign call volumes have increased both at the Competition Bureau and Phone Busters, the national anti-fraud call centre.

Through our partnerships we've had a number of successes over the past year, including several extraditions to the United States, record fines and significant jail terms. We believe the judges across Canada are beginning to understand the seriousness of these crimes and have begun to sentence and punish accordingly.

In addition to these accomplishments I am very pleased to announce that we have expanded our support to include over 35 partners, which will greatly expand the reach of the campaign. Over the next short while you will be learning first-hand about just how extensive that reach will be in Canada.

Fraud Awareness Month also has an international component. The 30 member countries of ICPEN - the International Consumer Protection and Enforcement Network - are participating in the awareness campaign through a number of activities, including advertising in the UK and Korea. The U.S. and Australia have embarked on an active Internet-based series of outreach activities. Finland and Visa International have adopted a similar approach to ours here in Canada. Almost everyone is issuing a series of news releases, and during the last week of February there will be a coordinated Internet sweep focusing on Internet-based scams.

A table with other international events is contained in your kit, and as other countries announce their activities we will post updates on our web site.

As fraud in all its forms continues to affect the lives of everyday citizens it is crucial to reiterate the importance of educating the public to recognize and report fraud. Law enforcement can only do so much. Education is prevention. No Canadian is immune to fraud, and as virtually every Canadian is a consumer there are millions of potential victims. Contrary to popular belief, this is not a crime that affects only the vulnerable of our society. We know that every Canadian is at risk of becoming a victim, regardless of education, income or age. This is why our campaign is focused on awareness and targets all Canadians. By reporting incidents of fraud and learning how to protect you and your family you can prevent others from becoming victims, and help put an end to fraud.

As you may know, the Competition Bureau reports directly to Parliament for all law enforcement matters, and the Minister of Industry acts on behalf of the Bureau in the House of Commons. We are honoured today to have the Minister, the Honourable David Emerson, with us to help launch February as Fraud Awareness Month. Minister?

Honourable David Emerson -- Minister of Industry
Thank-you very much, Sheridan, and good morning to you all.

I have to say I'm really proud of the work that Sheridan Scott and all of the good people at the Competition Bureau are doing, because the Competition Bureau - and indeed competition in Canadian markets - is really a fundamental part of our mission to create a more efficient, more dynamic and more productive economy going forward.

But I'm particularly pleased to be here today with this coming together of private resources and public resources to help Canadians with the fight against fraud. We at Industry Canada are delighted to be collaborating with the Competition Bureau, law enforcement agencies and a number of other public and private organizations to raise fraud awareness.

I'm particularly happy to be able to announce a major ramping up of this program. Support has expanded, as Sheridan said, to over 35 partners, and our partners are doing a lot more than just voicing support. In fact, we are launching by far the most comprehensive national public Canadian campaign against consumer fraud ever undertaken in this country.

This month, the first annual Fraud Awareness Month, our partners have committed to distributing over 30 million fraud awareness credit card inserts and countless brochures to their customers. They'll be displaying posters and counter cards at their retail outlets across Canada. They'll be airing public service announcements across the country on both TV and radio. They will be advertising in local papers across the country, and their web sites will have specific information on how Canadians can protect themselves from fraud, how they can learn more and who they should contact should they fall victim to fraud.

This kind of reach is possible only when corporate Canada joins hands with the non-profit and government sectors. I believe it will make a big and very positive difference in the lives of Canadians. I want to take this opportunity to congratulate corporate Canada for the great response to this call to action.

Having led a number of organizations in my own career, I can understand the importance of the relationship each organization has to their customers, and I know how difficult it can be to bring public service announcements into that relationship.

I'd also like to acknowledge the contributions made by all the people involved in this campaign. Some are posting up-to-the-minute information on web pages, others are distributing bill inserts, hanging posters, or offering up brochures.

We all know the marketplace in Canada is evolving dramatically. New technologies, growth in global business, and economic deregulation all have implications for consumers. On the positive side, it has increased convenience, expanded services, and created much more choice for consumers, but it's also created more opportunities for the perpetrators of fraud.

The Internet is a great tool, but it has added new risk. Internet fraud has become a growing problem Scams have become international in scope and they now reach all corners of the world. The more progress we make toward a global economy and a global society the more susceptible consumers become to scams and fraud on an international level.

For this reason we are pleased to announce that we are being joined by the United States Federal Trade Commission and the UK Office of Fair Trading, and we hope to build more international partnerships in the future. The sooner we convince the rest of the world to align with programs like Fraud Awareness Month the safer the world's consumers will be.

Part of Industry Canada's mandate is promote the interests and protection of Canadian consumers. We take that role seriously. Just before Christmas I announced the government's intention to introduce legislation into the House of Commons to create a do-not-call list for telemarketers. When passed into law it will allow Canadians to phone a single number to register if they do not want to receive calls from telemarketers.

Clearly good for consumers, and even the association that represents telemarketers came out and said they too support the legislation. It's that kind of responsible corporate leadership on behalf of consumers that we're saluting today. Last January federal, provincial and territorial consumer ministers agreed we need to provide consumers with reliable and complete information on how to reduce the risk of identity theft. In partnership with law enforcement agencies, consumer groups and the private sector, we launched the Consumer Information Kit on Identity Theft.

This year I'm happy to announce that federal, provincial and territorial consumer ministers have committed to creating an ID theft checklist for small businesses. That checklist is set to be distributed at the end of February to businesses all across Canada.

Every year identify theft, telemarketing fraud, pyramid schemes, marketing fraud and other scams cost Canadians millions of dollars. These scams not only cost victims financially but they also rob them of their dignity and in some cases their identity. I can tell you identity theft is an emotionally taxing experience because I have first-hand experience with it in my own case. I got away lightly, but many others will not.

Failure to recognize these scams and report them allows perpetrators to prevail and to multiply. That's why it is so important to educate Canadians on how to recognize fraud, how to report it, and ultimately how to put an end to it. The partnerships we have formed with the companies represented here today are vital. Without their help our anti-fraud message would not have reached a sufficient number of Canadians, and we would fail.

Congratulations to the Competition Bureau as the chair of the Fraud Prevention Forum for bringing together such a wide range of public and private organizations. We will continue to build on these partnerships and we will reach more and more Canadians every year. Together we can turn the tide in the battle against fraud.

Thank-you very much.

Sheridan Scott
Thank-you very much, Minister.

We are pleased to have so many private sector partners to help us convey our message to reach as many Canadians in as many different ways as possible with consistent messages about fraud.

For the second year in a row Visa Canada has taken a leadership role in the fight against fraud. Not only was Visa Canada the first to sign onto this year's campaign, but they are also the single biggest contributor in terms of volume distribution.

I am pleased to introduce Derek Fry from Visa Canada who represents all our private sector partners today. Derek?

Derek Fry -- President, Visa Canada
Good morning, everybody. Thank-you, Sheridan, for the kind introduction.

It's a pleasure to be here today to help launch Fraud Awareness Month, not just on behalf of Visa and our member financial institutions but also on behalf of all the private sector participants.

I'm particularly pleased to be sharing the platform with the Minister of Industry, Honourable David Emerson; Commissioner of Competition Bureau, Sheridan Scott; and Rick Kotwa, Detective Superintendent of the OPP. Their presence reflects the importance of the education effort that we're announcing today.

The Competition Bureau, law enforcement agencies and the private sector have teamed up to make February Fraud Awareness Month, the first national effort of its kind to educate Canadians on fraud. Why? Because we all have a stake in recognizing, reporting and stopping fraud. Fraud Awareness Month is an excellent example of what we can do collectively. The effort represents all levels of government, the provinces, municipalities, not-for-profit organizations, and corporate Canada.

Canadians are concerned about fraud. Just take a look at a few highlights from a national survey Visa recently conducted. 60% of Canadians reported that they are somewhat or very concerned about becoming a victim of credit card fraud. 61% of those surveyed are more concerned about card fraud today than they were five years ago. Approximately 90% of Canadians think that identity theft, on-line fraud, telemarketing scams and counterfeiting are serious problems.

Fraud has certainly been growing in recent years, both in incidence and in creativity. As Minister Emerson mentioned, some of the new technologies we embrace have brought with them new opportunities for the criminal. We have seen the arrival of phishing - with a "ph" - the use of phony but authentic-looking branded e-mails and web sites to obtain confidential consumer information. It used to be that only Clark Kent worried about protecting his identity. Now we must all be concerned with protecting our information. There's also been a 20% increase in payment card counterfeiting over the past year.

While we aim to stop the counterfeiters by adding secure computer chips to our Visa cards, it will take us a few years to get the job completed. In the meantime we must keep the pressure on the fraudsters. The simple fact is that whenever we institute new fraud prevention innovations, like the hologram and the magnetic stripe, or chip technology, the fraud artists unleash an international effort of their own.

You might call it Newton's Law of Fraud: every anti-fraud action causes an equal and opposite reaction from the criminal fraternity. Our innovation leads to their innovation, and the fraud arms race will continue. Visa and the rest of the private sector have done a commendable job to stay one step ahead of the fraud artist, but it's not easy and it requires constant vigilance and considerable investment.

Fraud Awareness Month is part of that vigilance and that investment. It's a joint effort of government, law enforcement and the private sector. This month of education and awareness activities is intended to marshal another important community in the fight against fraud. We need to reach, engage and mobilize individual Canadians to do their part. With this in mind, Visa member financial institutions are distributing statement inserts to our entire base of Canadian cardholders to educate them and to empower them. Many other partners are undertaking similar efforts with their customers.

Communications activities throughout the month include posters, brochures, counter cards, print and on-line banner advertising, in-store and in-branch flyers, and web and e-mail communications. You'll also be hearing public service announcements over the course of the next month, ad there are many other public education activities planned because government, law enforcement and the private sector simply can't win the battle against fraud on their own. We need informed and committed Canadians on the team to make our fraud-fighting force complete.

I'm proud to report there are 35 partners, and counting - in fact, I think we're probably over 40 now - contributing to and getting involved in Fraud Awareness Month, each contributing to the important effort we launch today.

As I said at the outset, I'm delighted to be here this morning, but I'm also here with a purpose. My purpose on behalf of my partners in Fraud Awareness Month is to send a very strong message to those who are considering - or are already living - a life of fraud. The criminals should know that government, law enforcement, the private sector and Canadians have never been more determined to put them out of business.

On behalf of the private sector partners here I encourage Canadians to recognize, report and stop fraud. I close today by reminding everyone, though, that while February is Fraud Awareness Month our collective responsibility to fight crime is not just month-long - or even year-long - it's life-long.

Thank-you very much.

Sheridan Scott
Thanks very much, Derek.

I would now like to turn the podium over to Rick Kotwa from the OPP. Both the OPP and the RCMP have been involved with the Fraud Prevention Forum since its inception several years ago and continue to align with us on this initiative in 2005. Their role as the enforcers of the Criminal Code are crucial to our mandate. Rick?

Rick Kotwa -- Detective Superintendent, OPP
Thank-you, Sheridan. It's my pleasure to be here representing the law enforcement community this morning.

In my current position I'm also a member of the Joint Management Team that's responsible for the Phone Busters national call centre which is jointly operated by the Royal Canadian Mounted Police and the Ontario Provincial Police.

As was mentioned, the OPP and the RCMP are proud members of the Fraud Prevention Forum and are honoured to be here today with over 35 partners - and counting - to help launch this initiative.

The Phone Busters national call centre is Canada's anti-fraud call centre for citizens and businesses that have been victimized by fraudulent telemarketing, mail or Internet fraud schemes. The Phone Busters national call centre enters its twelfth year of operations and has been a leader in the area of centralized reporting for victims of mass-marketing fraud and promoting safe consumer practices for person confronted by various fraud schemes.

Today, February will be declared as Fraud Awareness Month across Canada and 30 more countries around the world. This common declaration by the many nations signals a new era in the recognition of the need to educate consumers world-wide on the evils of fraudulent cross-border mass-marketing fraud.

The "Recognize It, Report It, Stop It" campaign message launched in March, 2004 has been very successful in creating a consistent way in which consumers should approach the matter and how they react to telemarketing, mail and Internet sales pitches or schemes.

All of the partners present here today realize that educating consumers is the best way to reduce the crimes and incidence of fraudulent sales pitches and schemes.

The information reported to the Phone Busters national call centre by the victims of fraud is used to identify the trends, practices and habits of the criminals and criminal organizations that profit from fraud, and we know there are many.

It should be no secret that criminal organizations use telemarketing fraud to provide seed capital to support their criminal empires and other illegal criminal activities. The OPP and RCMP have joined with other police services and regulatory agencies across Canada to act in concert with their enforcement efforts to combat deceptive and illegal fraudulent schemes.

To respond effectively, though, to fraud, the police need to accurately have an idea of what particular types of crimes are occurring, how and where the crimes are being committed, and who the criminals are. The likelihood of an effective police response to crime increases proportionally as the accuracy and volume of criminal intelligence increases.

The Phone Busters national call centre is partnered with Recall, an Internet web site that permits the on-line reporting of fraud, and the United States Consumer Sentinel Reporting Centre to share intelligence and assist the investigators with developing effective responses to the frauds that are reported. Our response must be comprehensive, flexible, and adaptable to the rapidly-changing world in which we live today.

During the past year in Canada there have been a number of arrests, prosecutions and sentencing of criminals responsible for fraudulent mass-marketing schemes. In April, 2004 a Competition Bureau investigation led to the arrest and conviction of four Toronto residents for their involvement in illegal business directory invoicing fraud. Two of the four persons were later sentenced to three years in a federal institution and fined $400,000 each. The sentences handed out in this case showed the courts also agree that the financial violence inflicted upon the citizens of Canada by criminals using illegal mass-marketing practices deserves punishment that includes substantial incarceration and monetary fine.

Sheridan Scott said it best: "Law enforcement can only do so much." Consumer education is the strongest form of empowerment this partnership can provide.

Thank-you.

Sheridan Scott
Thanks very much, Rick.

As our partners in law enforcement mentioned, prosecution is expensive and it is much better to stop these crimes before they happen. This is why prevention is the best remedy and education is the best form of protection.

As we have heard today, while the impact of fraud on the economy is great, so to is the impact on Canadian citizens, young and old, rich and poor, consumers and businesses alike. In order to curtail these effects on our citizens and economy we must first recognize the importance of educating the public to protect themselves.

As we learned today, the instances of reported fraud increased in the past year. This is significant in demonstrating that last year's campaign to recognize, report and stop fraud has made an impact. We still believe the best way to protect Canadians from fraud is to enable them to recognize it, report it, and stop it, and we will continue to increase our messaging to heighten awareness of the average Canadian in order to decrease instances of fraud.