During the pandemic fraudsters are endlessly devising new scams to trick us into parting with our money. Jeff Thomson from the Canadian Anti-Fraud Centre says that " Fraudsters are always targeting Canada with new and old scams. In 2019 the CAFC received more than 20,000 fraud reports involving more than $43 million in losses.
Some of the most outlandish scams that have hit the news include:
- Homeland Security Agents intercepting a number of fake Covid-19 tests inside a parcel. Toronto police tracked down the the sender and charged him with fraud and possession of a forgery device.
- A Toronto resident received a text message inviting her to click on a link to claim $1375.50 in emergency relief funds and her personal information was stolen.
- A California actor who promised a $300,000,00 return on investment to anyone who invested $1 million to back his fraudulent coronavirus cures.
- An American company offering a coronavirus protocol kit containing tea and cannabinoid tinctures. The FDA stopped this company from selling a product that claimed to prevent, treat or cure the virus.
Here are some of the latest scams to watch out for:
- Social Insurance Number scam - Getting a call from someone pretending to be from Service Canada who says that your SIN has been compromised. This is the latest variation on the caller id scam when fraudsters disguise the ID display on a phone to trick victims into answering the phone. Do not provide any personal information to this person as you could be at risk of identity fraud. If you get such a call hang up then call the number on your account statement or government website to verify.
- Email money transfer fraud - Often seen as a safe and secure way to transfer funds there were 371 million e transfers in 2019 worth more than $132 billion according to figures from Interac Corp. However the method is not foolproof, the anti-fraud centre received 163 reports in 2018 of bank accounts being compromised and money e transferred out.
- To protect yourself from this make sure your password is strong and do not share it with anyone.
- Use one password per website and continually change them, choose security questions that are not easy to guess.
- Use filters to protect from viruses and spyware.
- Look for strange passwords such as $ being used after the amount.
- If you accidentally fill out personal information in a link from a phishing scam change your online banking password and inform your bank immediately.
- Bank Investigator Scam - There are many variations of this scam but generally victims receive a call from someone posing as a store employee inquiring about a recent purchase on a credit card and are asked to call the number on the back of their card to verify the the validity of the call. When victims believe that they have hung up, the original caller who has not disconnected redirects the victims to imposters. To protect yourself from these type of scams.
- As most of these calls occur early in the morning often when a victim is still sleeping so it is important that you always stay alert when dealing with your finances.
- Do not assume that phone numbers on your call display are accurate, it easy for scammers to use call spoofing technology.
- Financial institutions will never ask you to transfer funds to an external account for security.
- Never give remote access to your computer systems to unknown callers.
- Scams targeting lawyers and trust funds - In these scams fraudsters pretend to be a client or someone authorized to give instructions on a client's behalf. In one case a company was tricked into transferring almost half a million dollars held in trust to a different account than the original set up for the client. In this case the email used by the trickster was identical to the one used by the client. To protect yourself:
- As any client or lawyer's account can be hacked, lawyers or other financial professionals should ensure that any changes to payment instructions should be confirmed by direct contact with the client.
- Due diligence protocols should are established for transferring funds and it should be ensured that all staff receive training and adhere to the rules.
- Be on high alert for scams during vacations. Arrange for a competent staff member to supervise your practice and provide your contact information to your staff.
Identity theft and fraud are big concerns for Canadians so it is important that everyone is aware of ways that they can protect themselves.
From an article by Margaret Craig-Bourdin