BY BRENT FOX

The Advertiser

NovaNewsNow.com

Video security, PIN numbers for credit cards, not accepting personal cheques and better training of staff would go a long way toward curbing fraud-related activities against businesses.

Cst. Geoff Peters of the Kings RCMP Kingston office spoke on “Fraud” to the Kings Crime Prevention Association monthly meeting in New Minas Tuesday, April 24.

Peters noted, “there are more than 50 fraud and fraud-related offenses in the Criminal Code of Canada covering a wide range of activities.”

He said if the act deprives someone of something by means of deceit, it’s fraud.

As well, if the fraud involves getting something in the future – for example, obtaining credit – it comes under false pretenses, Sec. 362 of the Code. This could also involve NSF (non-sufficient funds) cheques.

In NSF situations, intent is the major issue. If the person knows their account can’t cover the cheque, it’s an offense. Other fraud-related offenses of which businesses have to be wary include theft or forgery of credit cards and counterfeit money.

Some frauds are actually theft

Peters said that compared to other crimes, fraud-related infractions are relatively low in number, so far. In the Kingston office, for example, there were 11 cases in 2005, 21 in 2006, and so far this year, five. But many crimes some people think of as fraud are, in fact, thefts. And what some might consider civil cases are actually criminal.

He acknowledged that the New Minas figures would be much larger.

As for people trying to defraud banks, Peters noted, “the empty envelope fraud is still the most common.”

Peters said there are ways businesses can avoid being victims of fraudulent crimes. To avoid future credit card abuse, he suggested that credit cards have PIN numbers. After all, debit cards need PINs, but not credit cards.

As for cheques, staff should closely check out the signature. Even something as simple as gender should be checked out with identity cards.

In fact, Peters asked, with debit cards and ATMs readily available, why are stores even accepting cheques? Exceptions could be made for older citizens the staff may know, but cash and other means of payment are readily available. If a cheque is accepted, there should be a policy and a mandatory check of identification.

Educate your staff

As well, Peters said, educating staff to be more assertive will make criminals avoid targeting a business. “We’re not talking about masterminds here,” Peters said of perpetrators, “but those people do know who to go to.”

Staff should be able to identify offenses accurately and have a procedure in place to inform police. As well, they need a way to alert the manager if necessary.

His advice is to “get a new, top-of-the-line surveillance system. Digital systems are invaluable in police investigations. It saves us hours; days.”

Such a system costs about $4,000 to $10,000. The motion-activated, high-resolution systems greatly increase the chance of prosecution, he said.