Scammers offer ‘free’ phones, then trick victims into returning them

Canadian police are warning of a phone delivery scam that has cost victims more than $33,000, leaving them without their new devices but still responsible for the payments.

A seemingly generous phone upgrade offer is turning into an expensive ordeal for consumers in Canada, where fraudsters are impersonating telecommunications providers to steal newly delivered smartphones.

Police in British Columbia say several residents have fallen victim to the scheme, reporting combined losses exceeding $33,000 in recent weeks.

The Sidney/North Saanich Royal Canadian Mounted Police (RCMP) issued a warning on Oct. 9, describing a scam in which criminals persuade victims to accept a new phone, then trick them into shipping it directly to the fraudsters.

Key points

• Fraudsters impersonate mobile carriers and offer free phone upgrades or exclusive loyalty deals
• Victims receive actual smartphones, making the offers appear legitimate
• Scammers then claim the devices were shipped by mistake and provide fraudulent return labels
• Victims lose the phones but remain responsible for the associated contracts or payments
• Police in British Columbia report more than $33,000 in combined losses

How the phone delivery scam works

The scheme begins with an unsolicited phone call from someone claiming to represent a legitimate telecommunications provider.

The caller offers a free upgrade, a loyalty reward, or a special deal on a new smartphone.

To receive the device, the victim is asked to provide personal or account information, supposedly to update an existing subscription or establish a new one.

Shortly afterward, one or more smartphones arrive at the victim's home.

The delivery makes the offer seem genuine. However, the scam is far from over.

The fraudster contacts the victim again, claiming the wrong device was shipped or that a delivery error needs to be corrected.

The caller then provides a prepaid shipping label or QR code and asks the victim to return the phone.

But the return instructions direct the package to the scammer rather than the telecommunications provider.

The victim is left without the device, while the contract, financing arrangement, or monthly payments remain in their name.

A real phone

Unlike conventional phishing schemes, where criminals simply try to steal credentials or payment details, this operation uses the legitimate delivery process to gain the victim's trust.

The fraudsters exploit the confusion surrounding an apparent shipping mistake to persuade consumers to surrender expensive devices voluntarily.

By the time victims realize something is wrong, the smartphones may already be in the criminals' possession.

Similar cases have been reported elsewhere in Canada, including Ontario, where victims have faced substantial charges for devices obtained through fraudulent phone upgrade schemes.

How to avoid the phone-return scam

Police are urging consumers to treat unsolicited phone upgrade offers with caution, particularly when callers request personal information or offer unusually generous deals.

To protect yourself:

• Verify unexpected offers. Hang up and contact your mobile provider directly using its official website, app, or customer service number
• Never share sensitive information with an unverified caller. This includes account credentials, passwords, verification codes, and financial details
• Question unexpected deliveries. If a smartphone arrives that you weren't expecting, contact your provider before taking any action
• Check return instructions independently. Never ship a device using a label or QR code supplied by an unsolicited caller without confirming the destination with your provider
• Monitor your account. Review mobile bills and financing agreements for unfamiliar charges or newly added devices

Anyone who suspects they have fallen victim should contact their telecommunications provider immediately to dispute unauthorized charges and secure their account.

Canadian residents can also report suspected fraud to local police and the Canadian Anti-Fraud Centre.

Bitdefender Scamio can help consumers assess suspicious messages, links, and offers before engaging with potential scammers.

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