How to Protect Yourself from Frauds and Scams

Published: March 22, 2023

We’ve written about the cost of frauds and scams and the people who are most vulnerable. This is an important discussion to have because it’s never the victim’s fault.

However, we want to do even more than lead the discussion on compassion for victims. We also want to empower people to protect themselves and to identify scammers’ tricks. In this post, we’ll share some of the common types of scams we see, their warning signs, and what you can do to keep your information safe. 

Common Scams to Look Out For

Love Scams

“This is perhaps one of the most underreported scams, as people are often embarrassed and ashamed that they have let their emotional guard down and fallen victim,” says Murray, a Manager in Financial Empowerment. It’s important to remember that these scams are designed to trick you and make you feel a sense of love and closeness. The people performing these scams are very intentional in how they communicate – they want you to fall for them and they’re acting accordingly. These scams most often lead to asks for money, with elaborate stories to explain the person’s urgent need.

Rent Scams

This kind of scam is common online. The scammer makes a post about an available apartment and then either uses the fake application to collect your personal information and/or steals the ‘deposit’ that you send them for a rental that was never available at all.

CRA Scams

People often receive text messages and phone calls from fraudsters pretending to be the CRA. The text, recorded message, or person posing as an agent says that they need information to process your tax return or that they want want to send you money. Any text or call of this kind is a scam and they are asking for information the actual CRA should already have.

Streaming or Bank Account Scams

Scammers posing as Netflix, other companies, or banks will text or call you to say there’s a problem with your account or password. In this case, they are trying to get you to send them your password. Others will contact you claiming that your account has been overcharged and that you need to send them your credit card information so they can refund you.

Warning Signs of Scams

Something sounds ‘too good to be true.’

Think along the lines of rent that’s far cheaper than similar places, someone reaching out to say you’ve won a prize (especially if you don’t remember entering a contest), or investments that are ‘a sure thing’.

Someone demanding or insisting on immediate payment or money transfer.

Be wary of any person or institute urging you to immediately send payment or money transfer by cash, bitcoin, and other hard-to-trace methods. 

Offers telling you to act quickly – ‘it’s now or never’

Scammers are usually aiming to get what they want from you as fast as possible so that they can disappear without a trace.

Someone telling you not to discuss an opportunity with anyone else.

Whether it’s a spouse, family member, close friend, or coach, it’s good to have safe people you trust to talk with about financial decisions. If someone tells you not to talk to anyone, it’s very likely that there’s something unusual about the offer that they don’t want you to notice. 

Requests for personal information.

This is something to be especially suspicious of when the other party has reached out to you. If it’s an institution or company that has called, texted, or emailed you without you contacting them first then it might be a sign that they’re running a scam.

How to Keep Your Information Safe

Don’t provide your Social Insurance Number (SIN) unless required by law.

Only the government, banks, credit unions, other financial institutions, and employers are entitled to it. Did you know that your SIN isn’t required on rental applications? Say ‘no’ to everyone except the list above if they ask for your SIN.

Look out for the signs of scams.

All the things we listed in the section above are good indicators that someone might be trying to scam you. 

Be stingy with your personal information.

Especially when you didn’t initiate contact, do not share your account numbers, passwords, pin numbers, address, card numbers, etc. If someone says they are from a company or agency and is asking for money, financial information, or personal information: have your guard up and say no. We also recommend that you don’t give your personal information to people you’re meeting in person for the first time. 

Make your social media accounts as private as possible.

Don’t share your birthdate, when and where you’re traveling, or any information that is commonly associated with security questions such as: make and model of your first car, mother’s maiden name, parents’ middle names, nicknames for pets, and so on. 

If you have any doubts: wait.

If you have any doubts, wait before giving out any of your information. Scammers will try to make things seem urgent; that’s part of their format. 

If you’re not sure, end the communication.

If you’re not sure whether the person you’re speaking with is actually a representative of a company or agency, you can end the call. Then, look up the agency or company’s contact information online to initiate contact yourself so you know you’re speaking with someone at the company.

Always discuss financial decisions with people you trust.

If you’re not sure who to talk to, our Financial Empowerment program can help.

Be suspicious of people reaching out to say you’ve won or inherited something.

Remember: if it sounds ‘too good to be true,’ it probably is!

Don’t click on links.

Obviously there are plenty of safe links out there. We just don’t think you should click on links if they’re in text messages or emails from phone numbers and email addresses that you don’t know or have saved.

Review your credit card bills and bank statements.

Do so regularly.

Check your credit report.

We recommend that you at least do this annually.

 

Fraudsters and scammers are sneaky. It’s unfortunate that this is something we have to be aware of, but it’s good to be informed! 

Want to learn more about how to protect yourself from frauds and scams? Our Financial Empowerment program regularly hosts workshops on the subject – check out our calendar to see upcoming dates!