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Monthly Archives: March 2017

Mail scams: a loosing sweepstake

Mail scam is a fraudulent scheme in an attempt to obtain money or something of value from an individual. In 2014, the Canadian Anti‐Fraud Centre Annual Statistical Report stated that more than 42,000 complaints were filed for fraudulent activities originating in Canada or affecting Canadians.

On February 10, 2017, the Financial Services Commission of Ontario (FSCO) issued a warning to consumers about a mail scam conducted involving an unlicensed insurance company called TD Insurance, Melohre Mannex. Although this company may have a similar name to a licensed insurance company, they are not registered or affiliated with FSCO or the Registered Insurance Brokers of Ontario (RIBO).

The company issues notices to recipients stating that they are among the winners of a Home Phone Mega Sweepstakes Raffle. They claim to be working on behalf of the North America Financial Clearing Services to find winners that have not claimed their winnings.

The company sends the recipient a cheque to help pay taxes, insurance, handling and shipping fees. It requires the recipient to contact the claims representative listed on the document to either activate the cheque or start the claims process.

This type of scam is commonly known as an advance fee fraud. FSCO warns consumers to exercise caution if they receive unsolicited correspondence advising of lottery, sweepstakes or raffle winnings, and are encouraged to forward copies of the materials received to the Canadian Anti-Fraud Centre. Within the past year FSCO has issued several warnings of advance fee fraud scams.

For more information on your policy’s fraud insurance options, contact your broker or company agent.