Fraudsters do not discriminate... young or old, all education levels, with resources or not. Recently, several clients have been victims of fraud ranging from a few hundred dollars to hundreds of thousands. Below are some ways to avoid fraud:
If it's too good to be true, it probably is. If there is a promise of remarkable returns in a short period of time, it is probably something to avoid.
Don't be afraid to say No. Don't be intimidated by high-pressure sales tactics. If a telemarketer tries to get you to buy something or to send them money right away, request the information in writing or hang up. Watch out for urgent pleas that play on your emotions.
Recognize Spoofing. Spoofing is used by fraudsters to mislead victims and convince them that they are communicating with legitimate people, companies, or organizations via caller ID, email and websites. If you are contacted via email or phone due to a 'problem' with your computer, it's best to hang up and discuss with someone you trust or contact a legitimate computer/IT technician in your community.
Protect Your Computer. Watch out for emails with spelling and formatting errors and be wary of clicking on any attachments or links as they may have viruses or spyware. Make sure you have antivirus software installed and keep your operating system up to date.
Unless you start the contact, don't give out personal information such as your name, address, birthdate, Social Insurance Number, credit card or banking information, access codes or passwords.
Trust your gut. Rely on a trusted contact such as a spouse, other family members, friends or a financial advisor for a second opinion. If you've received a call or other contact from a family member in trouble, discuss with other family members to confirm the situation.
The sooner you recognize you may be a victim, the sooner it can be dealt with and limit your loss. Although you may be embarrassed, it's important to report the Fraud to your local police and Canada Anti-Fraud Centre.
Jim Hummel, CFP® CKA®