Common Scams and How to Prevent Them
In 2024, Canadians lost over $638 million to scams, a staggering figure that highlights how important it is to protect your finances. Staying informed and alert is one of the most effective ways to protect your finances and your financial health.
At Mainstreet, we know fraud is a sensitive and serious topic. That’s why we’ve put together this guide to explain the most common fraud scams, how Mainstreet keeps you safe, and the practical steps you can take to stay safe. Our team is here to provide you with responsive advice and is committed to your financial well-being.
Most Common Scams
Scams can vary depending on your region, age, or local market conditions. Across Ontario, certain types of fraud are common and continue to affect individuals and families. At Mainstreet, our focus is on keeping you informed and prepared. By sharing the warning and indicators of fraud along with prevention tips, we can help you spot risks early, because your financial safety matters to us.
Card Not Present
As online shopping becomes more popular, so does the risk of card-not-present scams. These scams occur when your card information has been stolen or skimmed from a website, other platform, or data breach. It is always important to ensure the website you shop at is legitimate and secure before entering your payment information.
How it Works
Scammers will steal your card information from compromised websites or platforms and use it to make purchases without needing the physical card. This fraud can occur silently and often goes unnoticed at first, which is why prevention is even more important.
How to Stay Safe
The best way to prevent this scam is to be vigilant about where you use your card online. Only use your debit or credit card on websites that you’re familiar with and never use your card on websites that you do not trust. If you land on a website that looks fake or the business looks too good to be true, it likely is. Its main purpose is to steal your card information.
Here are a few ways to protect yourself
- Use your debit or credit card only on trusted, reputable websites.
- Do not save your card information as a form of payment on websites.
- Check the seller’s reputation via review or a third-party website such as Trustpilot.
- Look for a secure padlock- most website browsers display a padlock in the URL field to indicate a website is safe
- Monitor your chequing, savings, and credit card accounts regularly so you can quickly spot suspicious behaviour.
If you notice any unauthorized transactions on your account, contact Mainstreet immediately. Our team can disable your card and gather the necessary information to begin an investigation. Ultimately, our goal is to recover the funds for you, wherever possible.
Investment Scams
Investment scams often promise high returns or quick profits but fail to deliver. They will often ask you to invest in non-traditional investment channels such as cryptocurrency, pyramid schemes, or fake or real celebrity endorsements. While the offer may sound exciting, they are often too good to be true.
How it Works
Victims are contacted by bad actors pretending to be part of an investment company. Often, the ‘investment companies’ use cryptocurrency platforms as a front. They convince victims that there is money in their crypto wallet, but before you can “access it,” they will request an e-transfer or wire to the investment company before releasing the funds. Once the money is sent, it’s gone.
How to Stay Safe
You should never have to send money to receive money from your investment. The old saying rings true ‘If it sounds too good to be true, it probably is.
There are several ways you can keep yourself safe from investment scams.
- You should never send money to receive an investment return.
- It is important to always verify who you are dealing with. If you cannot find reliable information on the person or company that is asking you to invest, they are likely not a trustworthy company.
- Do not give out information on unsolicited calls.
- Don’t be afraid to say no.
- Talk to someone you trust and who has your best interests in mind.
If you receive an unsolicited investment offer that you’re unsure about, you can always reach out to your Mainstreet advisor to help you determine the validity of the offer.
Romance Scams
Love can be blind – and scammers know it. Bad actors will engage in emotional manipulation by pretending to form a romantic connection online. Once trust is built, the romance scammers will exploit it, often leaving the victims financially hurt and emotionally shaken.
How it Works
Scammers will connect with victims through dating websites, apps, or social media. They build convincing profiles using stolen photos and fabricated personal details. Over time, sometimes weeks, months, or even years, they will create a bond with the victim.
Once a relationship and trust have been established, the scammer will ask for money. They will request money for various reasons, such as legal, travel, medical, or emergency expenses. Requests might begin with smaller amounts but usually grow larger as time goes on. Because the relationship feels genuine, it can be very hard to recognize that it’s a scam.
How to Stay Safe
You should never send money to strangers. No matter how convincing their story may be, financial assistance is a major red flag for romance scams.
There are several ways you can keep yourself:
- Never send money or information to someone you have never met in person before.
- Watch for excuses about why they cannot meet face-to-face. Scammers often claim to be overseas for work or not in your area.
- Be cautious if you meet someone online and they profess their love or deep feelings very quickly.
- Do a reverse image search on the profile pictures to see if they appear anywhere else.
- Talk to a trusted family member or friend if you’re unsure. An outside perspective might help reveal red flags.
Additional Scams
QR codes
QR codes are convenient, but they can also be risky. Fraudsters may place fake codes in public places to steal your personal information or lead you to fraudulent websites. Before scanning, verify that the code belongs to where it is placed. If something feels off, trust your instincts and don’t scan.
Identity Theft
Identity theft can happen to anyone. If you notice any strange transactions or receive bills for things you didn’t buy, you might be a victim of identity theft. To prevent identity theft, secure your personal information, use strong passwords, and check your credit reports once or twice a year.
For even more protection, the Canada Anti-Fraud Centre is an excellent resource. Their website shares recent scams, prevention strategies, and what steps to take if you become a victim of fraud.
At Mainstreet, we understand how overwhelming fraud can be. That’s why our team is committed to supporting you if you have any questions. Whether it’s helping you spot red flags or setting up account safeguards. We’re here to make you feel supported in everyday banking.
How Can You Stay Protected
The best way to protect yourself from scams is to stay alert and take proactive steps to secure your personal information. A few simple steps can go a long way in reducing the risks of scams.
Verify the source: Always verify the legitimacy of the sender before sharing or providing financial information.
Use strong passwords: Create complex passwords with a range of upper and lowercase letters, numbers, and special characters. Do not reuse passwords across multiple accounts.
Enable two-factor identification (2FA): Adding this extra layer of security makes it harder for fraudsters to access your account.
Avoid clicking links in unsolicited messages: Scammers often send fake emails or texts with dangerous links. If you get an unexpected message, do not click the link.
Never give unsolicited access to your computer: If you ever receive an unwanted message or an unsolicited call, never grant the caller access to your computer. This is a common tactic used by scammers to access your computer and steal your information.
What To Do if You’ve Been Scammed
If you suspect you’ve fallen victim to a scam, it’s important to act quickly. Taking immediate steps can help limit and protect your financial future.
- Notify your financial institution: If your Social Insurance Number, account details, or credit or debit cards may have been compromised, contact your financial institution immediately. This way, they will lock your cards, require ID when you arrive in the branch, and monitor your account more closely for suspicious activity.
- Contact local law enforcement: If you think you’ve been a victim of a scam, contact your local police department.
- Monitor your credit rating: Do regular check-ins on your credit score to make sure it is not compromised and there are no unwanted transactions.
- Update your passwords: Change your passwords to accounts that may have been affected.
- Canadian Anti-Fraud Centre: If you need any further assistance, contact the Canadian Anti-Fraud Centre.
If you believe you’ve been scammed, following the steps above as soon as possible will limit the fraudster, secure your financial future, and avoid any long-term issues.
How Mainstreet Protects You
As a Mainstreet member, keeping your funds safe is our top priority. We have advanced technology to monitor accounts and quickly detect suspicious activity. Some of these safeguards include:
- Alerts for online transactions.
- E-transfer blocks where suspicious behaviour patterns are detected.
- Account activity notifications for sudden balance drops or duplicate transactions.
If we notice something unusual, we will contact you so we can verify the transaction. This proactive approach helps stop fraud before it escalates.
On your online banking account, you can also access digital banking tools to keep you safe. You can add custom alerts and messages if someone logs in to your account, tries to set up a new e-transfer recipient, sets up a new bill payee, and more. Along with a strong password, these are a few easy ways you can keep your online banking protected.
If you’re ever unsure about a phone call, email, or message you’ve received, or if you believe your account has been compromised, don’t hesitate to contact us or visit your local branch. Our advisors are here to help protect your financial needs, give you peace of mind, and guide you through any concerns.