March 19, 2018
With Canada’s 14th annual Fraud Prevention Month now underway, Credit Canada CEO Laurie Campbell notes it’s no longer just seniors and newcomers who are special prey to fraudsters; increasingly as technology advances, con artists are targeting millennials.
MARCH 16, 2018, TORONTO, ON – For this year’s Fraud Prevention Month, one of Canada’s leading advocates for financial literacy has news for any millennial who might be thinking that they are not a target. Increasingly, tech-savvy scammers are employing sophisticated methods to pick the pockets and bank accounts of anyone of any age or background.
“It used to be the case that newcomers and the elderly were the prime targets for financial fraud. But these days, thanks to the digital world we live in, anyone can be a victim. Surveys taken during the last two years – by Equifax Canada for example – show that more than half of Canadians have fallen prey to financial fraud, and that millennials (anyone born between early1980s and the mid-90s) are the most likely targets,” says Laurie Campbell, Credit Canada Debt Solutions CEO.
Meanwhile, Canada’s Competition Bureau assessed that Canadians lost an estimated $290 million to fraudsters in the two-year period leading up to 2017. Credit card fraud has the highest incidence rate, followed by debit card fraud. While the criminals continue to employ traditional techniques such as telephone, emails, and in-person, they are increasingly using social media to deceive millennials. Despite being tech-smart, the demographic has such a strong presence on social media that they have become natural targets for scam artists.
“Clearly it’s up to all of us to acknowledge the scope of financial fraud, and to educate ourselves about it. We need to understand the various forms it can take, and the steps that can help prevent these con-artists from robbing unsuspecting, and in some cases vulnerable, victims. Fraud Prevention Month is a good reminder that everyone’s at risk,” added Campbell, urging everyone to take advice from Canada’s Competition Bureau’s tips for fraud prevention.
Know the signs and take action
Scams to watch out for this year:
Emergency Scam - Grandparent Scam – If you receive an email or call from someone claiming to be a friend or relative in urgent need of cash to get out of trouble, it's probably a scam.
Wire Fraud - Supplier Swindles - CEO Scam – This is a scam that targets businesses. In some instances, an employee receives an email from a high-ranking executive – often the CEO or the CFO. The email informs the employee that they need to transfer money quickly to close an important transaction. In other cases, an employee receives an email from a trusted supplier. The email informs the employee that an order has not been paid or that their account information has changed.
Extortion Scams – Extortionists are scammers who use every trick in the book to persuade you to give up money, services, or even property. They contact you by phone, text messages, emails, or social media messages. Once they have your attention, they lay out a sophisticated scenario in which you are left with what looks like only one sensible choice: To pay them. They can resort to threats against you, your family, your property, or your reputation. During tax season beware of calls claiming you owe the CRA and if you do not pay they will put a lien on your home. If you receive such a call and you are not sure if it is legitimate, hang up and contact the CRA directly.
Top scams that still need attention
Phishing – Phishing is a scam and, like its namesake, it has a hook: an email that looks and sounds legitimate, but isn't.
The Official Bank Scam – A fraudster tries to get sensitive financial information from you through an email that looks exactly like something from your bank.
Employment Scams – Scammers use online classified websites like Kijiji, Craigslist, Monster, Indeed, and Workopolis to recruit potential victims. The most common scams include Mystery Shopper and HR/Administrative jobs.
Spoofed Websites – A spoofed website is a site that misleads consumers into thinking that it represents a specific business, financial institution, government or charity.
Ransomware – This is a type of malicious software designed to block access to a computer until a sum of money is paid by the victim.
Subscription Traps – These scams will always offer you a “free trial” or purchase of a product, while all you have to do is simply pay the shipping and handling fees using your credit card.
Fake Online Endorsements – Consumers are often enticed to purchase a product or service based on fake reviews by apparently trustworthy people.
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Laurie Campbell, Chief Executive Officer
Credit Canada Debt Solutions
Tel: 416-228-2526 Toll-free: 1-800-267-2272