How to protect yourself from financial fraud

In today’s environment, financial fraud is more prevalent than ever.

While financial fraud can happen to people of all ages, seniors are particularly vulnerable. In fact, fraud is the number one crime committed against older Canadians.¹ Some key reasons are because seniors may be home more often during the day to answer the door or the telephone, they may also be more trusting and may not have family or friends nearby to ask for a second opinion.

It is important to know how to keep your personal and financial information safe and secure. Learn how to recognize, reject and report common scams to help protect you and your loved ones from fraud.

Phishing

Fraudsters impersonating government agencies, banks, communication providers, or other companies contact potential victims to lure them into providing personal or financial information, such as usernames, passwords, credit/debit card numbers, PINs, and other sensitive data, that can be used to commit financial crimes.

Phishing typically occurs in an email but can also come as a text message (smishing)—or fake phone call (vishing).

Extortion scams

Impersonating Canada Revenue Agency (CRA) employees, fraudsters will call unwitting victims to falsely claim there are discrepancies from past tax returns and that payment is required immediately. They threaten that failure to do so will result in additional fees and/or jail time.

The CRA would never phone, email, or text you to ask for information. If you are concerned, you can always call the CRA directly at 1.800.959.8281.

Romance scams

Unscrupulous individuals will create fake profiles on dating or social networking sites to seek out potential victims and gain their trust over some time. Once the perpetrator has gained their confidence, they will eventually ask the victim to send them money.

Mail scams

Victims receive unsolicited mail advising they are the beneficiary of an inheritance or have won a prize. The fraudster states the victim must pay upfront fees before the funds can be released.

Service scams

Imposters call and identify themselves as representatives of a well-known technology company, such as Microsoft or Windows. They claim that your computer has been hacked and must be serviced for a fee payable by credit card or money transfer. These individuals will remotely access your computer, run malicious programs, alter settings, or steal personal information.

Bank investigator scams

Consumers are contacted by phone and asked for assistance to catch a bank employee who has been stealing money. The victim is instructed to visit their bank branch and make a cash withdrawal from their account without disclosing the reason, as the teller may be involved in the scam. The victim is then directed to place the cash in an envelope and meet the “investigator” or send the money through a wire service, such as Western Union.

Loan scams

Consumers seeking loans may stumble upon offers through advertising or websites designed to resemble legitimate lending institutions. Once the victim has provided their personal information, they are informed their loan will be deposited into their account within 24 hours of sending an upfront fee. Once the payment is received, the fraudster ends communication, and no loan money is provided.

How do I report a suspected scam?

If you or someone you know has been the victim of a scam, contact the Canadian Anti-Fraud Centre at 1.888.495.8501 or visit their website at antifraudcentre.ca.

Remember to: Recognize, Reject, Report.

Quick tips to prevent financial fraud

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¹ https://www.canada.ca/en/employment-social-development/corporate/seniors/forum/fraud-scams.html

source https://rosenbergdri.ca/how-to-protect-yourself-from-financial-fraud-2/