Ever fallen for a scam? While only 5% of Canadians report being victims of frauds or scams, it is actually quite common. Perhaps the low reporting rate is due to feelings of embarrassment that you’ve been “duped”. There’s nothing to be ashamed of if you are a victim of fraud. Many scams are so well-designed and executed that some of the sharpest minds fall prey to them. Anyone, anywhere regardless of race, class or education can be a victim of fraud.
This is why we need to keep learning about the different types of fraud and what to do to prevent ourselves from becoming victims. Knowing the resources at our disposal to report scams or fraud is also vital.
With each passing year, scams only get more elaborate and sophisticated. So much so, that there’s a whole month dedicated to spreading awareness about fraud and learning how to prevent fraud and scams. March is known as Fraud Prevention Month.
During this month, organizations across the country do their bit to raise awareness about fraud and scams. We want to help all Canadians prevent fraud in their daily lives. So, while there’s never a bad time to equip yourself with the knowledge you need to stay safe from being scammed, the month of March presents a particularly good opportunity. And we suggest you make the best of it.
According to the Canadian Anti-Fraud Centre, Canadians lost about $379 million to scams and frauds in 2021. A large part of these losses rose from cyber-scams. This isn’t surprising given how much of our lives shifted to the online sphere during the pandemic.
Here are some of the costliest scams we faced in the last year alone:
Investment Scams
The total amount Canadians lost in 2021 to investment scams was a whopping $163.9 million. The scams were relatively simple, preying on the hope of making a quick buck - a hook that most fraudsters have used to their advantage throughout history. The investment scams of 2021 involved creating fake investment websites that sold cryptocurrency or illegitimate stocks. With the big boom of cryptocurrency in the past few years, and with people turning towards trading in the pandemic, this scam was particularly successful.
Dating Scams
All is fair in love - except when it’s not love but a scam to play on your emotions and extort money from you. That’s exactly what several fraudsters did in 2021. They created phony profiles on dating apps, luring people into believing they had found someone special. By playing the perfect partner, psychologically manipulating, and seducing their victims, these scammers would gain the victim’s trust. Then, they’d suddenly face a crisis of some sort and ask their new partners to help them by giving them money. They may go so far as to show them photos of accidents to convince their partners to give or lend them money, disappearing shortly after. How much did Canadians lose to these rogue Romeos and jilting Juliets? More than $65 million.
Spear Phishing Scams
Heard of phishing? Well, that’s old-school now. The newest scams are an evolved version of phishing popularly referred to as spear phishing that cost us about $54 million. Instead of a Nigerian prince requesting that you lend him money, spear phishing involves scammers gaining your trust by pretending to be a part of the government, a reputed organization, or acquaintance of someone you know. They then invest some time and energy into lulling you into a false sense of security by interacting with you. Finally, when you believe the scammer is genuine, they may request a small or big loan. Upon receiving it they take the money and make a run for it, never heard of from again.
Business can also be targeted
While these were the scams that we lost most money to as a society, there are many smaller scams and frauds that can play out across our daily lives. Scammers can target individuals or even businesses.
According to Chris Lynam, Director General of the Canadian Anti-Fraud Centre and the National Cybercrime Coordination Unit, RCM, “Fraud is having real impacts on individuals, businesses, and organizations. Many don't think it could happen to them but last year's jump in reported financial losses demonstrates that that's not true. While law enforcement and partners continue to work to prevent and disrupt fraudsters, we need Canadians to learn how to protect themselves and always report.”
What can I do to stay safer?
So, just how do you protect yourself? At Innovation, we’ve put a number of measures in place to offer you that extra layer of security so you can bank safer.
You can instantly stop debit card fraud from your phone or online banking
Identity scams and extortion were some of the most commonly reported scams in 2021. With the Innovation app on your smartphone, you can prevent debit card fraud in seconds through your mobile phone or online banking. How? Our Lock’N’Block® feature allows you to lock your debit card, block ATM transactions, block purchases and refunds, and even block all international transactions. To access this feature all you need to do is log into digital banking, choose More > Lock’N’Block®. Yes, your security is literally just a few clicks away.
You can also automatically deposit your Interac e-Transfers®
Usually, Interac e-Transfer® is seen as a convenient and safe way to transfer and receive money to and from your friends, family, and businesses. However, safety issues can arise if you use an easy security question or share the answer to the security question in the message box. Fraudsters also send phishing links that look like an Interac e-Transfer® to fool you.
Stay safer by trying Autodeposit instead. It makes Interac e-Transfers® more secure by preventing fraudsters from intercepting your transfer and removes the risk associated with security questions by getting rid of them entirely. As a bonus, it also saves you time since you don’t need to log in to your mobile app or online banking to make your transfers. Autodeposit automatically takes away your chances of getting scammed.
Here's how you can register:
- Login to digital banking
- Select Payments & Transfers > Interac e-Transfer® > Autodeposit Settings
- Follow the prompts and you're set
You can always stay informed with banking alerts
One of the key mistakes victims of banking scams make is not being aware of their transactions, balance, and other banking updates. However, with instant banking alerts activated, you’ll never be in the dark about what’s happening with your account. You can add both protection and convenience to your online banking experience with banking alerts. You will be able to stay informed by email or text message when online activity occurs on your accounts. These alerts will let you know instantly if someone has changed your digital banking password or attempted to access your account. You’ll also be alerted if someone has added a new bill payment vendor or Interac e-Transfer® recipient to your profile, allowing you to step in and stop the scam before it even occurs. Plus, you’ll also get updates and alerts on your bank balance. If your account balance is running low, you’ll be saved from any unsavoury surprises. Bank alerts go beyond just your bank balance and transfers too - they’ll even let you know when your term deposit is maturing so you can re-invest in time or plan your finances better. To access banking alerts, simply login to online banking or the Innovation mobile app, then choose Profile > Manage Alerts. Done, and done!
Apart from these features, there are some general tips that will also help to keep you extra safe from scams. Add these to your mental checklist so you can prevent being a victim of fraud:
- Always set a unique password for your online banking. Use a mix of lower case letters, upper case letters, numerals, and special characters to make your password strong. If you struggle with remembering passwords, a handy trick is to set a phrase with random letters assigned to lower and upper case and a scattering of special characters. For example, I Love New York could be 1L0V3N#3Y0rK, making it difficult to crack.
- Never click on strange links within emails. If you receive a mail with a strange link from a person you know, always contact them to check if the link is safe to be opened. If it’s from a stranger, report as spam immediately.
- Never accept unexpected Interac e-Transfers®. Don’t click on any links to log in to online banking. This is almost always a way to steal your login information so they can log in to your actual online banking account and steal your money.
- Never use public WiFi for online banking. Public WiFi is famously known for being unsecured. It would be very easy for a fraudster or hacker to get all your banking details and other sensitive information.
- Never share your passwords. No matter how strong a password you set, if you share your password, you automatically make it easier for someone else to access your account. This not only refers to physically telling your password to someone but also to writing it down.
- Never leave your debit card unattended. It’s easy to duplicate your debit card details. If you find any fraudulent activity on your cards (since you have banking alerts activated), make sure to take action immediately by using Lock’N’Block®. Better to be safe and bear the inconvenience of getting a new debit card than the agony of losing your hard-earned money.
- And finally, stay updated on the latest types of fraud by visiting the Competition Bureau's website for common scams. Knowledge is the best way to prevent scams.
As the Canadian Anti-Fraud Centre says, one of the best ways to prevent fraud is by rejecting and reporting. If you've submitted any personal information to a scam artist, please contact us at Innovation at 1.866.446.7001. You should also report the issue to the Canadian Anti-Fraud Centre, Equifax (1.800.465.7166), and TransUnion(1.800.663.9980).
While we observe Fraud Awareness and Prevention Month, make sure to discover more valuable tips on how you can prevent being a victim of scams and fraud as an individual or as a business. You’ll also find a host of resources on everything you need to know to report scams and fraud. Stay alert, stay safe!