In recent years, financial scams have become more common, affecting people all over the country. These financial scams can range from fake emails pretending to be from your bank to phone calls claiming you owe money to the government, but all with the same goal - to steal your personal or financial information.
Some people lose their savings, others end up in debt, and the emotional stress alone can be overwhelming. And it’s only getting worse. In 2023, The Canadian Anti-Fraud Centre (CAFC) reported over 92,000 cases of fraud, with victims losing more than $530 million.
With the rise of online shopping and digital banking, it’s unfortunately become easier for scammers to find new victims. As more of our daily activities move online, it’s more important than ever to stay alert and learn how to protect yourself.
Understanding the warning signs of scams can help keep your money and personal information safe - and that’s precisely what this blog aims to help you do!
Recognize Common Types of Financial Scams
One of the most common financial scams is phishing, where scammers send fake emails or texts pretending to be a financial institution or other trusted companies. They work by trying to look as legitimate as possible and tricking you into giving them your personal information or asking you to send money.
Another scam is identity theft, where criminals steal your personal details, like your Social Insurance Number or credit card information, and use it to open accounts or make purchases in your name.
Lottery scams are another trick, where scammers tell you that you've won a prize or lottery, but you need to pay a fee to claim it. Of course, there is no prize, and they just take your money and never get in touch with you again.
Beware of Unsolicited Communication
It’s important to be cautious when you receive unexpected calls, emails, or messages that ask for personal information or payments. Scammers use these methods to trick people into sharing details like bank account numbers or passwords.
If you get an unexpected message, trust your instinct. Never give out your personal information right away. Take your time and verify if the communication is real.
If you have any doubts whatsoever, contact the company or organization directly using a trusted phone number or website. For example, if you get an email that looks like it’s from your bank, don’t click any links right away.
These fraudulent emails often contain typos or have suspicious-looking email addresses. If you’re still not sure, call your bank using the official number from their website to ask if they sent the message.
Never Share Personal Information Online
It’s always important to protect your personal information, but even more so when it comes to the digital world.
Never share sensitive details like your Social Insurance Number, details of your financial accounts, or passwords through email or on suspicious websites. Scammers often create fake websites or send emails that look like they’re from a real company to trick people into giving out this information.
If a website or email asks you for personal details and it seems suspicious, stop and think before sharing anything. Make sure the website is secure by looking for "https" at the beginning of the web address and a padlock symbol. And especially avoid sending personal information through email, as it’s not a secure way to communicate.
Be extra careful with what you share online, especially on social media. Scammers can use even small pieces of information to steal your identity or hack into your accounts.
For example, have you ever seen those seemingly innocent and random Facebook posts, asking you to tell everyone your first pet’s name, or the name of the street you lived on as a child? Well, those are common “forgot password” questions, and your answers could potentially be used against you.
Use Secure Payment Methods
When making payments, always use secure and traceable methods like credit cards or trusted payment platforms, such as PayPal. These options often come with financial fraud protection, which means if something goes wrong, you can report it and usually get your money back. Credit cards, in particular, allow you to dispute charges if you didn’t authorize them, adding an extra layer of security.
On the other hand, avoid using wire transfers or gift cards for transactions, especially with people or businesses you don’t know well. Scammers often ask for payments through wire transfers or gift cards because they are almost impossible to trace, and once the money is sent, it’s highly unlikely you’ll get it back. If anyone asks you to pay this way, it’s a massive red flag.
Protect Your Online Accounts
To keep your online accounts safe and avoid identity theft from hackers, it's important to take a few steps. First, create strong passwords that are hard to guess. Use a mix of letters, numbers, and special characters, and avoid using obvious things like your name or birthday. Each password should be at least 8-12 characters long.
Next, enable two-factor authentication (2FA) whenever possible. This adds an extra layer of security by requiring you to enter a code sent to your phone or email, along with your password. Also, avoid using the same password for multiple accounts. If one account gets hacked, the others that have the same password could be at risk too.
If you borrow money online, always do so with a reputable lender like iCash. We’re all about top-notch security when it comes to our same day loans, so you can rest assured that your information is safe!
Monitor Your Bank Statements Regularly
Always check your bank statements and credit card statements for any unauthorized transactions. Scammers can sometimes make small charges that are easy to miss, hoping you won’t notice.
If you see a charge you don’t recognize in any of your bank accounts, contact your bank or credit card company immediately to report it. They can help you stop any further transactions and may even be able to return your money.
Check your credit report too. You can usually see credit reports for free once a year through companies like Equifax. Regularly checking your credit report to make sure everything is accurate is a good way to ensure everything is normal.
Keep Your Devices and Software Updated
Updating your devices and software is an important way to protect yourself from financial scams. Scammers often look for weaknesses in old software versions, which is why companies release updates to fix these security issues as often as they do.
By updating your phone, computer, and apps regularly, you can help prevent scammers from taking advantage of any security gaps.
It’s also a good idea to use reliable antivirus software. Antivirus programs help detect and remove harmful viruses or malware that scammers may try to sneak onto your device. Many programs also warn you about suspicious websites or downloads, giving you extra protection.
What to Do If You’re a Victim of a Scam
If you’ve been a victim of a financial scam, it’s important to act quickly to protect yourself. First, report the scam ASAP. In Canada, you can contact the Canadian Anti-Fraud Centre or your local police. They can help investigate and possibly stop the scammer.
Next, get in touch with your bank or credit card company. Let them know what happened so they can freeze your account, stop unauthorized transactions, and help you recover lost money. It might also be beneficial to get in touch with any of the major credit reporting agencies or government agencies like Equifax to set up regular credit monitoring of your credit report.
Acting fast can help limit the damage and avoid financial scams. Either way, don’t be afraid to ask for help. There’s always someone you can contact to help you through any situation.
