Stop, Look, and Think: Thwarting Cybercriminals Before They Get Your Financial Information

Personal Financial Debt

Canadians lost $375 million to scams in 2021 alone, a 130 percent increase from previous years

The rise of online shopping has presented many opportunities for cybercriminals. Photo by THE CANADEAN PRESS/AP/Jenny Kane files

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Cyber criminals are working hard to stay one step ahead by finding new ways to take advantage of our vulnerabilities. Canadians lost $375 million to scams in 2021 alone, a 130 percent increase from previous years. The way to protect ourselves from their creativity in trying to cheat us our money is to improve our ability to prevent them from accessing at all.

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The first step in fraud prevention is to increase our understanding of how the fraud occurs. One of the most common online scams to access your financial information is when a cybercriminal sends an email (phishing) or SMS (smishing) regarding a refund or electronic transfer of money. In order to receive the money, you must provide your bank details. Do not click on the link and never provide your bank details unless you log in directly to your financial institution’s secure website, unless you are expecting an electronic transfer.

As a result of the war in Ukraine, there has been a remarkable and justified increase in the number of humanitarian aid collectors. While requests for donations may come from a legitimate source, you must verify this first. Instead of clicking a link, you go directly to that organization’s website to donate. An email/text can often appear authentic, but the website link or parts of the message may have minor spelling changes. These, accompanied by a sense of urgency, are warning signs to watch out for.

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The rise of online shopping has also presented many opportunities for cybercriminals. It is important to ensure that you are dealing with a reputable company when making online purchases. For example, clicking on a link from another application may redirect you to a fake website designed to access your bank or credit card information. It would be wiser to go directly to the company’s website to purchase the product and make sure you are buying from a legit seller.

Use a low-limit credit card for online purchases to reduce the amount that can be accessed if your card details fall into the wrong hands. And be sure to check your monthly credit card and bank statements to make sure all transactions are indeed yours.

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One phone fraud that we have all been repeatedly warned about is fraudsters posing as Canada Revenue Agency (CRA) personnel. They use fear to trick the recipient into believing that they are in danger of being arrested or having their Social Security Number (SIN) suspended. The intended victim must make a payment, usually through untraceable gift cards, in order to put their account back in good standing. Hang up when you receive such a call.

The CRA will notify you in writing if you owe money and will never require payment by gift card or cash. Call the CRA or log into your secure online CRA account if you have any questions about any outstanding balance.

Although not very common, door-to-door scams still occur. Whether they’re raising for charity or selling a product, it’s critical that you don’t give your financial information to a stranger. Pay cash for goodies, and if a donation is requested, verify the employee’s identification with the company before handing over credit card information.

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If you believe your information has been compromised, notify your financial institutions immediately. If they can freeze the risk accounts as quickly as possible, this can limit or even prevent additional losses. Then report the situation to your local police and the Canadian Anti-Fraud Center. Finally, contact both credit bureaus, Equifax Canada and TransUnion Canada, to add a warning to your credit file. This alerts potential lenders in case someone applies for credit on your behalf.

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Follow best practices to keep your money safe and prevent fraud. Shred all documents and financial statements with your name, date of birth, SIN and account numbers on them. Use strong passwords and never use your date of birth or last names as passwords. Cyber criminals can guess common passwords based on your social media information.

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If you can’t remember them all, consider using a secure password manager to store all your passwords. Even better, use multi-factor authentication. This requires a code to be sent to your phone when opening an account. Even if your password or account credentials are compromised, a fraudster may not be able to access the second level of security provided by multi-factor authentication.

Do not click on unknown links or download attachments that you do not expect. If you haven’t heard from a friend or customer in years and unexpectedly receive an email with an attachment, don’t open it.

When in doubt, stop before clicking a link or responding to a request for money. Check to make sure you know who is contacting you and that they are legit. And always remember to confirm if the request is genuine and if you can afford to help.

Sandra Fry is a Winnipeg-based credit counselor at Credit Counseling Society, a nonprofit organization that has helped Canadians manage debt for more than 25 years.

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This post Stop, Look, and Think: Thwarting Cybercriminals Before They Get Your Financial Information

was original published at “https://financialpost.com/personal-finance/debt/stop-look-and-think-thwarting-cybercriminals-before-they-get-your-financial-info”

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