Fraud losses could hit $70M

Photo: Contributed

Mass marketing fraud is big business and Canadians continue to fuel the enterprise. According to the Canadian Anti-Fraud Centre (CAFC), Canadians were scammed out of nearly $69.5 million by mass marketing fraudsters in 2014.

This year is shaping up to be more of the same, with $35 million in reported losses as of the end of June. One local expert says part of the problem is Canadians may not realize they possess the means to protect themselves.

“The solution isn’t technology alone,” says Lindzee Herring, assistant vice-president of corporate security for Valley First, a division of First West Credit Union. “While technology helps, the most powerful tool for protecting yourself against fraud is common sense.”

Herring points out that fraud attempts often have a “too-good-to-be-true” quality to them. CAFC statistics indicate 40 per cent of fraud reported in 2014 was scams offering a service, prize or merchandise.

“When you hear or read an offer you can’t quite believe, that’s usually the first clue that something is fishy, that you need to slow down, think and avoid making an emotional response,” says Herring. “Acting emotionally can result in you becoming a victim.”

Much of today’s fraud uses what security experts call social engineering.

“Essentially, fraudsters craft messages in a way that’s intended to persuade or pressure you to do something, like clicking a link in an email that will infect your computer with malware or providing your credit card information over the phone,” says Herring. “This is why stopping to think and not feel pressured is so critical. When you realize you don’t have to act immediately, the pressure is off and the power rests with you.”

While a full two-thirds of reported financial losses originate online, through email or malicious websites, Herring reminds consumers to remember their regular mail and confidential documents are at risk as well.

“Identity fraud still occurs through mail theft or confidential documents that are not disposed of properly,” she says. “You should keep tabs on your mail to make sure those bills or statements are arriving consistently—and invest in a home office shredder to shred confidential documents”

Herring also recommends people consider electronic billing and statements and using mobile alerts to monitor their bank account activity. She says learning about common scams with materials like the Little Black Book of Scams is worthwhile too.

“People don’t need to be afraid,” adds Herring. “The truth is, once you become informed, you’re in control of the situation. You can evaluate the message, you can delete that email or hang up the phone.”