The "free upgrade" from your phone company

What the scam looks like

The call sounds like good news. Someone says they are calling from your phone company: you have been a customer for years, and there is a loyalty upgrade waiting - a new phone at no cost, or the same plan for half what you pay now. To set it up, they say, they just need to confirm it is really you. A code has just been sent to you by text. Could you read it back.

Your provider does run loyalty offers, and it does sometimes send you a code by text. What it never does is phone you first and ask you to read that code out loud. The code is what signs someone in to your account, and once they are in the account they order a device - in your name, on your bill. And this is where it catches people who thought the worst was over: the phone actually arrives at your door. A courier turns up to collect it, or a shipping label lands in your inbox asking you to send it back to an address that has nothing to do with your provider.

You are left holding the contract and the payments, and the device is gone. The same calls are also used to get a photo of a driver's licence or a health card, which is already enough to try opening an account somewhere else in your name.

Red flags

• A call you did not ask for offers an upgrade, and the first thing it needs is a code that was just sent to you.
• You are asked to send back a device that arrived in your own name, to an address you cannot check.
• The caller wants a photo of your driver's licence or health card to "confirm the account".
• The offer only stands if you act during the call. A real loyalty offer will still be there once you have hung up.

What to do

• Hang up and call your provider yourself, at the number on your bill - never the number that showed up during the call, and never one the caller gives you.
• Never read a security code out loud to anyone. Your provider and your bank both already know they should not ask.
• Gave out a code, or sent a device back? Call your provider right away to stop the order, then report it to the Canadian Anti-Fraud Centre (1-888-495-8501).
• Not sure where to start? See our "I've been scammed" guide - the first few hours matter.