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How to Stay Safe from Scams and Fraud Thumbnail

How to Stay Safe from Scams and Fraud

In today’s digital landscape, fraud and cybercrime are on the rise. According to the Canadian Anti-Fraud Centre (CAFC), Canadians reported losses of over $530 million to fraud in 2022, representing a significant 40% increase from the previous year. As hackers and scammers grow more sophisticated, they target individuals through various online and phone-based schemes to steal sensitive information. Protecting your personal and financial data is crucial, and understanding these threats can help you safeguard yourself.

Common Types of Scams and How to Spot Them

Fraudsters use a wide array of techniques to steal personal data. Below are some of the most common forms of fraud and key indicators to watch for:

1. Phishing and Spear Phishing
  • Phishing scams involve fraudulent emails, texts, or websites that impersonate legitimate institutions, seeking to steal sensitive information like passwords or account numbers. Phishing remains one of the most common cybercrimes. These attacks typically attempt to create a sense of urgency, prompting users to provide information without careful review.
  • Spear phishing is a more targeted version, where scammers tailor emails or messages to a specific individual or organization by using personal information obtained from prior research. Often these messages will also attempt to impersonate someone in your address book, but the email will be slightly incorrect.
  • How to Spot Phishing: Look for poor grammar, generic greetings, unsolicited attachments, and suspicious links. Institutions will never request sensitive information like passwords or Social Insurance Numbers via email.
2. Fake Websites
  • Fraudsters often create websites that look identical to legitimate ones, tricking users into entering personal or financial data. These fake sites may closely resemble real businesses, such as banks or e-commerce stores.
  • How to Spot Fake Websites: Always double-check the URL for minor alterations. Also, look for poor design or outdated logos as potential indicators of a fake site.
3. Malware and Ransomware
  • Malware is malicious software designed to harm your computer, steal data, or spy on your activities. Common types include viruses, trojans, spyware, and ransomware. Ransomware, specifically, locks your system or files until you pay a ransom to the attackers. 
  • How to Spot Malware: Sudden pop-ups, unexpected system slowdowns, or unfamiliar programs being installed are signs of a malware infection.
4. Vishing (Voice Phishing) and Phone Scams
  • Vishing is phone-based fraud where scammers pose as legitimate organizations, such as banks or government agencies, to obtain sensitive information. Scammers often use fake caller IDs to appear as though they’re calling from a trusted number.
  • How to Spot Vishing: Calls that request personal information, passwords, or threaten legal action should immediately raise red flags. If in doubt, hang up and contact the institution directly using the official number listed on their website.
5. Identity Theft
  • Identity theft involves stealing your personal information, such as your Social Insurance Number (SIN), driver's license, or credit card details, to commit fraud. 
  • How to Spot Identity Theft: Warning signs include unexplained withdrawals from your bank account, unfamiliar charges on your credit cards, or being denied credit without an apparent reason.

How to Prevent Fraud

Preventing fraud requires a combination of security practices and awareness. Below are steps you can take to protect yourself from various types of fraud:

1. Online Protection
  • Use strong, unique passwords for every account. A secure password should contain at least 12 characters, including numbers, symbols, and a mix of uppercase and lowercase letters. Password managers can help store and manage these credentials.
  • Enable two-factor authentication for all your financial and personal accounts. This extra layer of security requires a second form of verification (such as a code sent to your phone) in addition to your password.
  • In addition to using two-factor authentication, an authenticator app provides even stronger protection. Authenticator apps generate a temporary code, often refreshing every 30 seconds, that you’ll need to enter along with your password when logging in. This makes it much harder for hackers to access your accounts, even if they have your password. Popular authenticator apps include Google Authenticator and Microsoft Authenticator. These apps work offline, meaning no text messages or emails involved, making it safer from phishing or SIM-swapping attacks. To set it up, simply download one of the apps, scan a QR code provided by your service or account provider, and start generating secure codes.
  • Regularly update your software and security programs. This helps protect your devices from newly developed malware and other threats.
  • Be wary of unsolicited emails asking you to click links or download files, especially if you weren’t expecting the message.
2. Phone Safety
  • Never provide personal information over the phone unless you initiated the call. If you receive a call from a suspicious source, hang up and contact the institution using an official number.
  • Use call-blocking services to minimize spam and robocalls. Many service providers offer built-in tools or apps for this purpose.
3. General Security Tips
  • Avoid oversharing personal information on social media. Fraudsters often mine these platforms for details they can use in spear phishing and other targeted attacks.
  • Be skeptical of unsolicited offers or requests for information, particularly those that pressure you to act immediately. Scammers often try to create a sense of urgency to push you into making hasty decisions.

What to Do If You’re a Victim

If you believe you’ve fallen victim to fraud, it’s important to act quickly to minimize damage. Here’s what you should do:

1. Contact Your Financial Institution
  • Immediately report the fraudulent activity to your bank or credit card provider. They can freeze your accounts, assist with reversing charges, and take steps to secure your funds.
  • If you have a question about suspicious activity or correspondence involving Manulife Bank, call 1-877-765-2265 or email MBC_Fraud_Operations@manulife.ca.
2. Change Passwords and Update Security Settings
  • Change the passwords for any affected accounts, especially your email and financial accounts. Update security questions and enable two-factor authentication if you haven’t already.
3. Report the Fraud
  • Report the incident to your local authorities and file a report with the Canadian Anti-Fraud Centre (CAFC). The CAFC helps track fraud trends and works to prevent future incidents.
4. Monitor Your Accounts
  • Keep a close watch on your bank and credit accounts for any unusual transactions or activity. Consider signing up for credit monitoring services, which can alert you to changes in your credit file or any new accounts opened in your name.

Additional Resources

For more information on fraud prevention and reporting, consider the following resources:

  • Canadian Anti-Fraud Centre (CAFC): Provides detailed advice on preventing and reporting fraud.
     Visit CAFC
  • Government of Canada: Fraud Prevention: An official guide to protecting your financial and personal data.
     Visit Government of Canada
  • Manulife: Security & Fraud Prevention: Information on protecting your Manulife accounts and data.
     Visit Manulife

 

Source for data: https://antifraudcentre-centreantifraude.ca/annual-reports-2022-rapports-annuels-eng.htm