It’s no secret that everyone has become more vulnerable during the COVID-19 pandemic and financial instability is among the top contributors to vulnerability to fraud, and scammers are taking full advantage of it.
A study conducted in January 2021 by CPA Canada shows that approximately 73% of Canadians received fraudulent requests.
Almost half of the fraudulent inquiries were made through email and a third through telemarketing. In 2020 alone, Canadians lost $106.4 million to fraudsters.
Between March 6, 2020 and January 31, 2022, there were over 30,000 reports of COVID-19 related frauds, over 28,000 victims and just under $8 million lost to those frauds, as reported by Canada’s Centre for Anti Fraud.
All frauds, COVID-19 scams included, have cost Canadians $380 million in 2021, and $34 million in January of 2022.
Financial advisors, planners and managers, are rushing to provide tips on how to avoid the increasing number of frauds and scams the Canadian population is facing — including Nathan Garries, a financial planner based in Edmonton.
He believes that sound financial planning helps clients “sleep at night” by not worrying about their finances.
This includes understanding how to recognize a scam or fraud and how to avoid them.
Table of Contents
Vary Your Login Information
Although it’s convenient when having to remember passwords for many accounts, using the same password for everything can make you vulnerable to theft.
If someone were to get access to one of your passwords, they would be able to access accounts with banking information or even government accounts.
To be on the safe side, use different, complex passwords for each of your accounts, especially the ones with personal information.
The same goes for saving your passwords.
“Try your best to avoid writing them down on your phone or computer and go for a piece of paper instead,” Garries said. “Or, you can jot down password prompts to help you remember what they were.”
Conduct Online Activity Safely
In a 2019 survey, Interac reported that 96% of Canadians failed to recognize a phishing email.
These emails often seem legitimate, perhaps sent from a company you have affiliation with like Apple, Amazon or Facebook.
If you’re in doubt, or notice that the sender has a strange email (containing a random variety of letters and numbers), don’t open the email, links or attachments in the email, Garries said.
Contact the company in question through their customer service centre if you’re worried about your information.
Similarly, don’t answer calls from unrecognized numbers, Garries added. This form of scam is called “spoofing.”
It’s when scammers pretend to be a financial or government institution to pull personal information or money from victims.
“Let the call go to voicemail instead,” Garries said.
Protect Important Information
When you are accessing important accounts or putting in personal information, make sure the website you’re using is secured.
On most browsers, a closed lock will appear next to the URL to indicate that the website is secure.
Next is determining whether your Wi-Fi connection is secured.
Ideally, you should only access important information on your home network, since public access Wi-Fi can be susceptible to hacking, Garries suggested.
The internet is not the only way a scammer can get access to your information.
If you still receive mail from your bank, government or any institution that houses your information, shred the mail once you’re done with it.
Report Frauds and Scams
If you or someone you know finds themselves in a scam or fraud, Nathan Garries advises reporting it immediately to help minimize the damage.
You can contact your bank, credit card provider, Canadian Anti-Fraud Centre or the relevant institution.
If you’re worried about scams, frauds and avoiding them, your financial advisor or planner will help you keep your money — and personal information — safe from scammers.
Important information about mutual funds is found in the Fund Facts document. Please read this carefully before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Unit values and investment returns will fluctuate.
Insurance products, including segregated fund policies, are offered through Beyond Business Financial Solutions Inc., and Investment Representative Nathan Garries offers mutual funds and referral arrangements through Quadrus Investment Services Ltd.
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