The president of the Canadian Taxi Association [CTA] is urging online retailers to stop selling generic "Taxi" roof light signs and is also clarifying that all taxi drivers accept cash.
The organization is speaking out following a rash of scams reported to police in Sarnia, Toronto, Sudbury and Ottawa.
"Teams of two people pretend to be a distressed passenger and taxi driver. The fraudster posing as the passenger approaches the targeted victim (whom police refer to as "the Good Samaritan") holding cash in hand and saying their driver will not take cash," CTA said in a news release.
According to the organization, the fake passenger then offers to give cash to the target in exchange for use of 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," CTA added.
Sarnia police reported in July that several victims had come forward in a taxi scam.
Residents were defrauded of between $20,000 and $30,000 over two days, and individual losses ranged from $980 to $9,900.
CTA President Marc Andre Way said unlike rideshare companies (like Uber or Lyft which are booked through an account attached to a credit card and never supposed to take cash), municipally licensed taxi drivers accept both cash and cards.
In a letter to Amazon CEO Andy Jassy, Way asked the company to stop selling the generic signs that are being used by criminals to defraud people.
"Traditionally in Canadian cities, branded roof signs were available only through specialty shops which supplied the taxi industry. The sellers knew who was making the purchase, which taxi brokerage the person drove [for], and in most cases, also installed the roof sign on the legitimate vehicle," Way wrote in his letter. "However, the generic signs being sold through Amazon and other outlets are available to anyone. This is not a safe, practical way to distribute the trusted 'Taxi' signs which have become synonymous with physical and consumer safety for over a century," he added.
Amazon responded saying safety is a top priority and the company will continue to monitor the situation, but the products comply with applicable laws and regulations and are legal to sell in Canada.