Protect Yourself from Financial Fraud and Identity Theft

1. Document all steps taken and make detailed notes.
2. Keep all records.
3. Notify your financial institution(s) and/or other account provider about any compromised account(s), including lost or stolen debit/credit card, cheques, etc. Request that a fraud alert is placed on your profile. Change your password(s) / personal identification number (PIN) code(s).
4. Contact both national credit agencies Equifax and TransUnion. Request that a fraud alert is placed on your profile. Also complete credit checks with both agencies (if you choose to complete your credit checks online, ensure it’s from a secure location). Report any unauthorized/suspicious account openings or credit inquiries to the associated company.
   1. Equifax – 1-800-465-7166 / www.equifax.ca
   2. TransUnion 1-800-663-9980 / www.transunion.ca
5. Report to the institution(s) that processed the transfer(s) of funds/property associated to the fraud. Examples include:
   1. Canada Post: 1-800-267-1177 / www.canadapost.ca
   2. Western Union: 1-800-448-1492 / www.westernunion.com
   3. Money Gram: 1-800-926-9400 / www.moneygram.ca
   4. PayPal: 1-888-221-1161 / www.paypal.com
   5. UPS:  1-800-742-5877 / www.ups.com
   6. Fedex: 1-800-463-3339 / www.fedex.com
   7. Purolator:  1-888-744-7123 / www.purolator.com
   8. Your credit card provider and/or financial institution.
6. If the fraud occurred online, report the incident to the applicable website holder associated to the fraud. Examples include:
   1. Kijiji / www.kijiji.ca
   2. Craigslist / www.craigslist.org
   3. Facebook / www.facebook.com
   4. Gmail / www.gmail.com
7. If you suspect your mail has been sent to another address, or your address has been used for other fraudulent purposes, notify Canada Post Customer Service at 1-800-267-1177.
8. Consider changing your phone number, email address, social media and/or other account if you have had contact with the suspect(s) with any of those communication methods. Monitor any incoming calls utilizing call display services.
9. If your identity documents (passport, permanent resident card, driver’s licence, social insurance number card, health card, birth certificate, etc) have been lost or stolen, contact the appropriate section of the provincial or federal government.
   1. Service Canada: www.canada.ca or visit a location near you Service Ontario: www.ontario.ca or visit a location near you
10. Report to the Canadian Anti-Fraud Centre (CAFC):
    1. 1-888-495-8501 / www.antifraudcentre.ca
11. Contact Police to make a report.
    1. For a fraud over $25,000 phone us at 519-570-9777.    
    2. For under $25,000 you can submit an online report.

It is important to stay informed about ongoing fraud scams in order to better protect yourself against becoming a victim.  

The most common types of fraud are identity fraud, newcomer fraud, and romance fraud. 

For the most recent information on prevention and current fraud and identity theft scams, visit the Canadian Anti-Fraud Centre website. 

Identity Theft

Occurs when a person uses a victim's personal information for a criminal purpose.

Internet Frauds

Phishing

A fraudster uses emails, text messages or websites pretending to be from a legitimate company such as a financial institution or government agency. The victim is led to believe that they must confirm their personal and/or financial information, which is intended for a criminal purpose.

Ransomware

A computer virus that blocks a victim's access to their computer, including important personal data, until money or virtual currency is paid to the fraudster. The fraudster claims that the victim will receive access to their data once a fee (ransom) has been paid. The fraudster may or may not restore the victim's access. The victim suffers the financial loss.

Scams

Advance Payment Scams (Prize, Lottery, Inheritance Scams)

The fraudster tells a victim that the victim has won a lottery or prize, or is the beneficiary of a large inheritance. The victim is required to pay an upfront fee in order to receive the money. The victim suffers the financial loss.

Cheque Fraud

The fraudster presents a real cheque that was stolen or altered, or a fake cheque.

Door-to-Door Scams / Service Scams

The fraudster pressures the victim into buying a product or service that is not needed or the product or service price is inflated. The victim suffers the financial loss.

Emergency Scams (often called Grandparent Scams)

The fraudster contacts the victim claiming that a family member is in crisis and needs money. The victim is directed to send money immediately. The victim suffers the financial loss.

Employment Scams / Job Scams

The victim applies for a job and is selected. The fraudster sends the victim a cheque. The victim is told to keep a portion of the cheque amount for their work. The remaining amount is sent elsewhere. The job and cheque are fakes. The victim suffers the financial loss.

Extortion Scams

Ransomware

A computer virus that blocks a victim's access to their computer, including important personal data, until money or virtual currency is paid to the fraudster. The fraudster claims that the victim will receive access to their data once a fee (ransom) has been paid. The fraudster may or may not restore the victim's access. The victim suffers the financial loss.

Canada Revenue Agency (CRA) Scams

The fraudster claims to be with the Canada Revenue Agency (CRA), and advises the victim that the victim owes money to the CRA. In order to avoid arrest or a fine, the victim must pay a fee immediately. The fraudster may request payment via money service businesses, pre‐paid cards/gift cards (iTunes, Google Play or Steam cards) or Bitcoin. Ignore these calls and emails and DO NOT provide personal information or send money. 

Maybe you have received an email or phone call about being eligible for a tax refund. Canada Revenue Agency will not provide tax refunds through e-transfer. If you receive an email similar to the above, call police and the Canadian Anti-Fraud Centre to report the scam. You should also tell your friends and family so they are aware of the new tactic being used by scammers.

Immigration Scams

The fraudster claims to be with Immigration Canada (official name - Immigration, Refugees and Citizenship Canada (IRCC)), and advises the victim that there is a problem with the victim's documents. In order to avoid arrest, deportation or loss of citizenship, the victim must pay a fee immediately. The victim suffers the financial loss.

SIM Card Swapping

Do you use your cell phone or tablet to browse your social media accounts, update your online banking or shop online? Fraudsters are aware that your phone is a treasure chest of information. Scammers are using SIM swapping and phone number porting to gain access to your email, social media and financial accounts. From there, they can access your personal information and data. How you can protect yourself: 

• Keep your personal information personal. It is as simple as not publishing your date of birth on social media
• Do not answer phishing emails or text messages looking for you to confirm your password or update your account information
• Use an offline password manager
• Contact your phone provider and ask about additional security measures that may be available
• If you lose mobile service on your device, contact your service provider immediately

Investment Scams

The fraudster persuades the victim to invest in investments with inflated returns. The investments are later determined to be worthless or non-existent. The victim suffers the financial loss.  

Overpayment Scams

A fraudster contacts the victim who is selling a product. The fraudster pays the victim with a cheque in an amount above the asking price. The victim is directed to send the excess funds elsewhere. The cheque is fake. The victim suffers the 

financial loss.

Romance Scams

A fraudster gains the trust and affection of the victim. Eventually the fraudster asks the victim for money, typically for a crisis. The victim continues to send money until they realize it is a fraud or no more money is available. The victim suffers the financial loss.

Romance scams happen in Waterloo Region. 

In 2019, the Canadian Anti-Fraud Centre received 972 complaints related to romance scams, which included 682 victims who lost over $19 million to scammers pretending to be in love.

Waterloo Regional Police have received reports of online romance scams where a victim was reportedly scammed out of $500,000 (USD). Similarly, in another instance, a female victim was defrauded $1 million (CDN) over the course of four years. In both cases the victims believed that they were in a relationship, but never met the individual who they were corresponding with online.

A complainant’s mother is currently in the hospital. The complainant found paperwork in the mother’s possession indicating she may have been the victim of a $125,000 relationship fraud. 

The following are safety tips to consider when engaging online with an unknown individual

• Be wary of someone who professes their love to you who you haven’t met in person
• Do an image search of the person to see if their photo is taken from a stock image
• Be cautious of someone who avoids meeting face-to-face
• The scammer may express distress or an emergency that requires you to send them money very early on in your communications. Do NOT send money.
• Look for inconsistencies in their online profile and what they tell you 

Debit Card / Credit Card Fraud (Payment Card Fraud)

The fraudster uses a device to tamper an Automated Bank/Teller Machine (ABM/ATM) or Point of Sale payment terminal ('debit machine') to capture data from a payment card and/or Personal Identification Number (PIN); then uses the information to make purchases.

• Know the Red Flags and verify every order request received
• Before shipping merchandise, verify the information provided by the customer (telephone number, email address, shipping address etc.)
• Be aware of request for priority shipments for fraud-prone merchandise
• Verify priority shipping requests when the shipping address and the billing address do not match
• For suspicious orders, contact your processor. Verify the security measures to prevent victimization and reduce unwanted chargebacks.
• Never accept overpayments to forward funds to a third party
• Merchants who accept CNP orders can lower their risk of fraud by using the automated verification tools supported by their payment processors.

Counterfeit Currency

 The fraudster produces imitation money to look like real money. The victim suffers the financial loss.