The Canadian Taxi Association is warning customers about scams involving fake roof signs that have recently been reported in several cities.
In a statement on Wednesday, the group said that there has been a rash of scams and cons involving fake taxis, mostly in Ontario, where a team of two people pretends to be a distressed passenger and taxi driver.
The group said such incidents were reported by police in Toronto, Sarnia, Sudbury and Ottawa.
“I wouldn’t call it on the rise, but it’s very prevalent,” said Canadian Taxi Association president Marc Andre Way in an interview with Global News.
“It seems to be moving from one city to the other.”
Way said the CTA suspects it might be the same group moving from city to city, but they’re not sure.
The scam involves a fake passenger approaching a passerby and saying their taxi driver will not take cash, which Way said is a red flag.
“Drivers not only accept cash, but often prefer cash,” he said.
The fraudster then offers to give cash to the targeted victim in exchange for using their debit or credit card.
“The scammer posing as the taxi driver then swipes the card and steals the target’s Personal Identification Number (PIN), later to drain their bank account or fraudulently use their credit card,” the CTA said in its release.
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In Sarnia, at least 12 such incidents were reported last month, resulting in individual losses ranging from $980 to $9,900, according to police.
The Ottawa Police Service also said in a statement on Monday that it has recently received several complaints concerning people being defrauded after offering assistance in paying with their personal credit or bank card for a taxi or Uber fare.
The CTA said it has taken up the issue of the generic “Taxi” signs with Amazon, requesting the company in a letter to stop selling them online as they are being used by criminals to defraud customers.
“There should be a mechanism, where some kind of proof of business licensing should be produced in order to have access to the roof signs,” Way said.
He said the fake signs are putting taxi drivers’ reputations on the line and something “much more serious” could happen than money being lost.
“We’re a trusted transporter for the public and by having access to roof signs so easily, you’re taking advantage of the public who feel that the taxis are safe.”
In a response to Global News, an Amazon spokesperson said these lights are legal to sell in Canada and as a result can be listed for sale in the Amazon.ca store.
“Unfortunately, like many products, these products can be misused,” the spokesperson said in an emailed statement. “Amazon will continue to monitor the situation and adapt to any developments on regulation and compliance of these items.”
There are several signs to look for in a taxi scam.
Way said credit card machines or POS machines are “very rarely” brought out of the vehicle so if someone approaches an individual and asks them to process a credit card on the sidewalk, that should be a first indication that this is a scam.
Licensed taxis usually have some branding, like a taxi plate or permit attached to the rear bumper of the vehicle, a number or logo painted on the side of the car, to indicate that it’s a legitimate business, Way said.
Inside the car, there’s a municipal tariff card and the driver typically has a licence or an identification card with a picture posted in the front, which is visible to the passenger.
There’s also equipment in the vehicle that allows the taxi driver to communicate with the dispatch office, a running meter that calculates the fare based on distance and time. All this indicates the taxi is legitimate and not a scam.
The roof signs should also be attached to a wire so they can be illuminated at night.
And there is the matter of payment. “The fact that someone is arguing on the sidewalk to give out cash, that should be a red flag,” Way added.
The Ottawa Police Service advises people not to agree to pay with a debit or credit card for someone else’s transaction even if they are offered monetary compensation.
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