Although March is selected as Fraud Prevention Month fraud can happen at any time of the year and it was with that in mind that the Wakaw Seniors club Inc. and the Town of Wakaw sponsored guest speaker was Cheryl Kirzinger FCUIC, CIA, CFE, CRMA on Friday November 25, 2022, to present Fraud Prevention – Learn How to Protect Yourself and Your Loved Ones. The event was open to everyone in the community and beyond and while not wanting to merely repeat what was shared on Friday evening, the incidence of fraud continues to grow every year and people of all ages can fall for a sophisticated and ‘professional’ fraudster. According to the Canadian Anti-Fraud Centre, fraudsters continue to find more sophisticated and detailed means of tricking Canadians out of their money. While none of the most “lucrative” types of fraud are particularly new concepts, changes to the way Canadians spend their time and new delivery methods those same fraudsters have, have made us more susceptible to certain types of fraud. Fraud has been identified as the number one crime against older Canadians by the RCMP. They are often at home during the day to answer the phone or the door, scammers have found that they can be more trusting of others and may be more vulnerable because they may not have family close by to ask for a second opinion. The RCMP have compiled a guide called the Seniors Guidebook to Safety and Security with many useful tips and precautions. It can be found at https://www.rcmp-grc.gc.ca/en/seniors-guidebook-safety-and-security#a7.
You may not know where to turn to get clear information about what terms like “identity theft,” “debit card fraud” and “phishing” mean and how you can protect yourself, but the good news is that most frauds can be prevented by identifying the methods used by fraudsters and some good old skepticism. The old adage “If it sounds to good to be true, it likely is”, continues to be a good rule to follow. The more you know about a fraud, the less likely you are to fall for it. There are many online scams and new ones appear all the time: some appear to be asking for help; some say there is a problem with your bank account or tax return. Scam e-mails are often easy to spot because of spelling and other mistakes, but some can look like they are coming from a person or organization you know. If you are not sure about any e-mail, for example, if it asks you respond with personal or financial information or to click a link that will take you to another website and enter information there – call to check, and do not respond to the e-mail.
Some very common scams are the phone and door-to-door ones. Someone will call or come to the door pretending to represent a charity, be an employee of a credit card company or even a long lost relative who found you through genealogy research. A safe rule of thumb is, if you are not completely sure who you are dealing with, do not give out any personal information, and do not give them any money. Representatives of bona fide charities should not utilize high pressure and intimidation tactics to get a donation and if they do, they should be reported to the charity in question.
Identity theft is the stealing of an individuals personal information and using it for example to apply for a credit card in another’s name or get a loan or mortgage. Personal information such as a bank card number and PIN, credit card number, and Social Insurance Number are some of the most commonly stolen pieces of information. The RCMP offer the following tips and safeguards:
According to the Canadian Anti-Fraud Centre, the scam that cost Canadians the most last year was investment scam which resulted in a reported $163.9 million in losses. In this scam, the fraudsters set up a professional-looking, but fake, investment website and lure victims to buy phoney stocks and cryptocurrency. In Saskatchewan, individuals or companies need to be registered with the Financial and Consumer Affairs Authority (FCAA) to trade or sell securities and investors can find more information on the FCAA website www.fcaa.gov.sk.ca.
The second most costly scam was the romance scam which sadly cost Canadians victims over $64.6 million. This scam typically includes psychological manipulation and sob stories to make requests for money more convincing. The scammer in this instance creates a false profile on a dating site or other social media and engages in online relationships with individuals and ultimately ask for money. Hiding behind the false profile, the scammer can be located anywhere in the world and can make their unwary victim believe anything they tell them.
The third most costly type of scam, spear phishing, resulted in $54 million in losses. These are messages that are delivered via e-mail and are designed to convince the user to open a malicious link or attachment, exposing the individual to malicious software. The goal of spear phishing is to acquire sensitive information such as usernames, passwords, and other personal information. Some examples of spear phishing include an email with a link where an employee is encouraged to sign an “updated employee handbook” or receiving an email notification requiring verification of account details to avoid limitation of your account and a link is provided to ‘prove you are the correct account holder’. These three alone, according to the CAFC, account for 75% of the $379 million in cyber-related reported losses and it is estimated that fewer than five percent of victims file a fraud report with the CAFC.
If you think you have been a victim of fraud do not let embarrassment keep you silent, contact the police. In case you missed the event hosted at the Rec Centre on Friday Nov. 25, there is another opportunity to learn more about protecting yourself from fraud and scams. Carlton Trail College in partnership with RBC is offering a free online session called Frauds & Scams – How to Protect Yourself February 8, 2023, from 6:30 – 7:30 pm. Pre-registration is required. To register and to find out more go to www.carltontrailcollege.com/catalog?searchQuery=financial+matters