Facebook ads scamming customers with fake discounts, says Vancouver Island puzzle company

David Manga said he first realized he had problems with his popular puzzle companyabout a month ago, when messages started pouring in about undelivered products.

"It was quite confusing,"said Manga, owner of the Victoria-based Cobble Hill Puzzle Company and Outset Media Games.

"We quickly found out that people were getting duped on Facebook ads claiming we were going out of business."

Manga said the ads, often using the company's logo and photography, offered deep discounts on puzzles and other products, along with the claim thatprices were so cheap because Manga's company is shutting down.

Since then, staff have been fielding more than 20 messages a day from confused customers, who believed the ads were legitimate. Many made purchases through a fraudulent website.

In reality, Cobble Hillis experiencing continued success as apuzzle supplier in Canada and across the world, Manga said, with hundreds of orders pouring in ahead of the Christmas season.

Andrew Ho, the owner of Northern Toy Box in Dawson Creek, B.C., recently ordered two palletsworth of puzzles.

"We always have people requesting Cobble Hill specifically," Ho said.

"They are everyone's favourite puzzle company."

The Facebook pages,reviewed by CBC News, use avariation of the Cobble Hill name and feature photos of puzzles taken from other sources.

The pages link out to other sites, also reviewed by CBC, that use the Cobble Hill logoand claimpeople can buy puzzles through the site by enteringtheir credit card or other payment information.

Manga saidhe keeps a list of verified sellers and these sites, which number over a dozen, are not among them.

He compared the feeling to having his house broken into.

"It's shocking, but it's also very disappointing."

'They wonder if we were involved'

Manga said the scam has impacted his business in many ways,including its reputation.

"There was obviously a lot of consumers who were very disappointed," said Manga.

"We do explain that they were defrauded by somebody else, but we know at the back of their head, they wonder if we were involved."

CBC News reached out to Meta, Facebook's parent company, about theads. A spokesperson asked for an example of one of the fraudulent pages and, after it was provided by CBC News, the page was removed.

Manga said he's tried contacting the company himself to put a stop to the ads.

He saidstaff have reported more than a thousand fraudulent ads on Facebook using the platform's built-in tools, and that emails and messages to Facebook supporthave gone unanswered.

On his own company Facebook page, Manga has published postswarning customers of the ads and documenting his attempts to get them taken down.

He's also published a list of more than a dozen websites pretending to have discount merchandise.

Not knowing where else to turn, he said he's hoping for some kind of regulation or legislation to help protect businesses like his.

Cybercrime poorly understood: business association

The B.C. Chamber of Commerce says cybercrime, including scams on social media, is poorly understood bybusinesses and local law enforcement.

That's in part because many businesses and customers do not report the incidents to officials,said Fiona Fanulak, president and CEO of the Chamber.

Fanulak recommends business owners and shoppersreport experiences of a cybercrimeto the Canadian Centre for Cyber Security, the RCMP or the Canadian Anti-Fraud Centre.

Since 2017, the chamber has been advocating for governments and police agencies at all levels to work together to understand cybercrimeand take steps to prevent it. In2021, the chamber led a national survey on cybersecurity and its impact on small businesses in conjunction withthe Canadian Centre for Cyber Security.

Anti-fraud groups also recommend online shoppersverify websitesby checking the web address ontheir browser, and ensureit matches what companies advertise in-store or on verified social media pages.

They also say it is best to avoid following links from unofficial social media pages or emails, which could be leading peopleto fake sites, and instead type web addresses manually.

Manga said he is directing shoppers to the official websites,cobblehillpuzzles.com and cobblehillpuzzles.ca, both of which includea "find a store" feature listing retailersthat buyers can trust, in the hopes of preventing future fraud.