{September 13, 2005} VICTORIA – The Business Practices and Consumer Protection Authority will be providing another $1 million in compensation to consumers who lost money in telemarketing scams, bringing the total restitution in the past year to over $3.5 million.

“For the past few years we’ve seen how globalization and technological advances have resulted in an increase in cross-border fraud,” said Solicitor General John Les. “The province’s new consumer protection agency is sending a message to fraudulent telemarketers that British Columbia is no longer a good place for them to do business.”

Consumers will be receiving compensation as a result of civil proceedings against several telemarketers who defrauded consumers in the USA and the UK in bogus lottery and bond schemes.

In foreign lottery scams, fraudulent telemarketers operating from various locations in British Columbia call consumers to tell them that they have won a significant amount of money in a lottery. However, the consumers must pay administrative fees and taxes in order to claim their winnings. If the consumers do pay these fees, they may be asked to pay additional fees. The consumers will continue to be pressured until they finally stop meeting the additional fee requests. The winnings do not arrive and the consumers eventually become aware that they have been the victims of fraud. Many of the consumers defrauded are elderly or particularly vulnerable.

Lists of potentially vulnerable consumers may be generated from mail solicitations which offer large prizes for a small entry fee or ask for information, such as financial details. The personal identification collected can be used to target consumers in various fraud schemes.

With globalization and technological advances, cross-border fraud has been increasing. The BPCPA works with the RCMP, the Competition Bureau Canada, the US Federal Trade Commission and the UK Office of Fair Trading to target international fraud and to provide compensation for consumers. The types of fraudulent activities include scams involving foreign lotteries, savings bonds and credit card protection schemes.

The Business Practices and Consumer Protection Act, administered by the BPCPA, prohibits deceptive acts and provides for property identified as the proceeds of illegal activity to be frozen and sold to provide compensation to consumers who have suffered losses.

The government of British Columbia passed the Telemarketer Licensing Regulation which will address both the fraudulent and nuisance aspects of telemarketing. Telemarketers will require licences to operate in British Columbia as of October 1, 2005. Licence applications, Frequently Asked Questions and other information are now available on the Authority website at www.bpcpa.ca.

Most companies who undertake telemarketing activities are legitimate and provide valuable services to consumers. However, the new regulation will provide the BPCPA with additional enforcement tools to minimize the number of fraudulent telemarketers.

The BPCPA warns that if you receive a notification that you have won a lottery which you did not enter, it's a scam. Never pay an administrative fee or provide your bank information to receive a prize. Genuine lotteries do not ask for payment before they provide your money.