Clients tempted by lower interest rate credit cards could become the victims of an ongoing scam, according to the Ottawa-based Financial Consumer Agency of Canada (FCAC). There are, however, several tips advisors can share with clients to make sure they don’t fall prey to any tricks.

On Monday, the FCAC sent out a warning of a recent scam where an individual contacts people asking if they would like the third-party company he or she claims to represent to apply for a low-interest credit card on their behalf. The scam artist then takes a fee in return for filling out the application.

“One of the reasons why people do these interest rate scams is everyone likes to get a deal and scammers know this,” says Julie Hauser, a media relations officer with FCAC.

The danger for clients is that while he or she often does receive the credit card as promised, says Hauser, the interest rate and terms and conditions are not what they had originally agreed upon. Furthermore, the personal information given to the caller could be used to apply for more credit without the client’s knowledge.

Below are a few points from the FCAC to share with clients to make sure they don’t fall for such a scam:

> Remind clients that they should never share personal information with a company over the phone or online unless they initiated the contact and are confident that they are dealing with a reputable institution.

> If contacted by someone offering a low-interest rate credit card, clients should ask for the caller’s name and the company and department he or she works for. The client should then end the call.

> Look for the company name and contact information on a credit card bill or account statement. Do not call the company again using any number provided by the original caller.

> If the client can find a number through his or her own research, the client should call the company and ask to speak with the person who contacted him or her.

Furthermore, the following are a few institutions clients can contact if they believe they have fallen victim to such a credit card scam: