Staying One Step Ahead: Protect Yourself from Financial Fraud

Financial fraud is on the rise, and scammers are getting smarter, faster, and more sophisticated. With scam methods evolving rapidly, it’s important to learn what to watch out for. March is Fraud Prevention Month nationwide, so it’s a great time to check your security habits.

According to Statistics Canada, reports of cybercrime-related fraud incidents have surged nearly 95% since 2019, showing how much criminals now rely on technology to target Canadians. The Canadian Anti-Fraud Centre (CAFC) tracks more than 30 different types of scams, from romance scams to investment fraud to identity theft, each type preying on trust, urgency, or confusion. 

So, how can you stay safe? Let’s break down the most common financial scams and what you can do to protect yourself.

Credit Card Fraud

With more people using credit cards to buy online or in stores, fraudsters are increasingly finding ways to use stolen personal information to open accounts or make unauthorized purchases.

  • TOP TIPS:

Online Shopping: Be sure the site you use is an official one. Check the URL carefully, look for its website address to begin with https:// If prices seem too good to be true, they might just be!

Disable Autofill: turn off your browser’s autofill options, so that if your device is stolen or hacked, a fraudster can’t access your credit cards information.

Set Up Alerts: Enable real-time transaction alerts to monitor credit card activity.

Review Statements: Look over your statements carefully for unknown transactions.

Identity Theft and Impersonation Scams

Scammers often impersonate trusted institutions like banks, government agencies, or other service providers.

  • TOP TIPS:

Be alert: If you aren’t expecting a call from your bank or financial advisor, it may be a scammer. Don’t give any personal information to the caller. Hang up and call them back (look for contact information on their website, or on your debit/​credit cards).

Shred Sensitive Documents: Personal or financial information on those documents you’re ready to recycle? Best to shred before tossing them away.

Check Credit Reports: Have an annual look to detect unauthorized accounts in your name.

Phishing, Smishing & Social Engineering

Many frauds rely on psychological manipulation. Whether through fake text messages (“smishing”), deceptive emails, or urgent phone calls, the goal is always the same: convince you to act quickly before you notice red flags.

  • TOP TIPS:

Check spelling & grammar: Double-check emails or texts for grammar or spelling errors, which can often be a sign of a scam. Scrutinize the email address to make sure it matches the company or person sending the email.

Don’t click on that link: Often a ​‘verification’ link is a way for scammers to steal information.

Block and Report: Report phone calls, emails, and text messages as scams and block them.

Investment and Cryptocurrency Scams

Promised high returns with low risk? It’s probably a scam. This fraud type often involves crypto assets, fake trading platforms, or unregistered investment advisors. They frequently leverage high-pressure tactics or ​“friends and family” referrals.

  • TOP TIPS:

If it’s too good to be true, it probably is. Start your investment journey by connecting with a trusted financial advisor, from a reputable company like CU Financial Management.

Online investing? Choose a company that is registered with the Canadian Investment Regulatory Organization (CIRO), like Qtrade*.

Protecting yourself from fraud isn’t difficult, here are some general things to do to safeguard your money and information.

General Fraud Prevention Checklist

  • Use strong, unique passwords for online banking and financial accounts. Change your passwords regularly.
  • Enable multi-factor authentication (MFA) wherever possible.
  • Update your devices regularly to protect against security vulnerabilities.

Online & Digital Safety Checklist

  • Never click suspicious links in emails or texts. 
  • Use secure (not public) Wi‑Fi networks, especially for banking or online shopping. 
  • Install reputable antivirus and anti-malware software.
  • Monitor your inbox for ​“password reset” emails you didn’t request.
  • Be cautious with online marketplaces or buy/​sell groups. Check the seller or buyer’s profile first before sharing personal information like addresses or emails. 

What To Do If You Think You’ve Been Targeted

  • Stop all communication with the suspected scammer immediately.
  • Contact your bank or credit card provider to stop payments or freeze your account.
  • Report the incident to the Canadian Anti-Fraud Centre (antifraudcentre​.ca). 
  • Document everything: screenshots, emails, transaction receipts.
  • Consider placing a fraud alert on your credit file through Equifax or TransUnion.

Awareness Is Your Best Defence

The good news? You don’t need to be a cybersecurity expert to keep yourself safe. A mix of awareness, healthy scepticism, and some simple protective habits can make all the difference.

*Online brokerage services are offered through Qtrade Direct Investing. Mutual funds and other securities are offered through Aviso Wealth. Qtrade Direct Investing, Qtrade Guided Portfolios and Aviso Wealth are divisions of Aviso Financial Inc.