This article is Part 3 of our four-part series on “Investing in your financial well-being.” The series line-up is as follows:

1. Money matters - addresses the fundamentals of financial planning, budgeting and investment.
   
   

2. Smart savers - focuses on effective saving habits and tools that can help Canadians maximize their financial resources.
   
   

3. Financial fraud - will provide crucial insights into protecting oneself from financial scams, a growing concern in the digital age.
   
   

4. Retirement ready - will guide readers through preparing for a financially secure retirement, a topic of paramount importance for individuals at any stage of their career.

Together, these articles are meant to not only inform but also empower our CSS Pension Plan members to take control of their financial destiny, fostering a community of informed, savvy and resilient individuals ready to face the financial challenges and opportunities of the future.

The series will be a comprehensive guide to achieving and maintaining financial wellness.

• Your first action item from Part 1 was to take the Financial Literacy Self-Assessment Quiz.
• Your action item for Part 2 is to complete the Retirement Savings Course (a free online educational course developed by the Association of Canadian Pension Management).
• Your action item for Part 3 is to complete the learning module “Fraud protection” available from the Government of Canada.   
  
  

With the increasing sophistication of scams, it’s vital to stay informed about fraud prevention.

Part 3: Protecting yourself in the digital age

This article delves into common scams targeting individuals and businesses, how to recognize them and steps to take to protect yourself from becoming a victim of financial fraud.

Common financial scams

1. Phishing scams - these scams involve fraudsters posing as legitimate organizations or people to steal personal information. They often use emails, text messages, or phone calls to trick individuals into providing sensitive data like passwords or credit card numbers. 
   
   

2. Investment scams: Fraudsters promise high returns with little risk to lure victims into bogus investment opportunities. Common types include Ponzi schemes, pyramid schemes, and “pump and dump” schemes.
   
   

3. Bank imposter scams: Scammers impersonate bank representatives to gain access to your account. They might use spoofing technology to make their calls appear legitimate or send emails asking for login credentials.
   
   

4. Business email compromise: This scam targets businesses by hacking into email accounts to initiate unauthorized transfers of funds. It often involves impersonating a company executive or vendor.
   
   

5. Identity theft: Fraudsters steal personal information to open accounts, make purchases or commit other crimes in your name. This can happen through data breaches, phishing, or physical theft of documents. 

Learn more about the top 10 financial scams targeting consumers. 

Recognizing financial scams

• Unsolicited contact: Be wary of unexpected emails, calls or messages asking for personal information.
• Too good to be true: Promises of high returns with no risk are often red flags. 
• Urgency and pressure: Scammers often create a sense of urgency to prompt quick decisions without proper verification. 
• Suspicious links and attachments: Avoid clicking on links or downloading attachments from unknown sources. 
  
  

Steps to protect yourself

1. Educate yourself - stay informed about the latest scams and how they operate. Learning best practices with respect to cyber security, like recognizing phishing attempts, is key to keeping your personal information safe. Resources like the Financial Consumer Agency of Canada provide valuable information on staying secure. 
   
   

2. Verify contacts - always verify the identity of anyone requesting personal information. If you receive a suspicious email, a simple and effective way to protect yourself is to check the sender’s email address. Malicious actors often pose as legitimate sources, but you can verify authenticity by looking closely at the “from” address. Legitimate companies usually use email addresses with their official domain name (example: @csspension.com). Be cautious of emails from addresses with random letters and numbers or free email domains, as these are often signs of spam. When in doubt, contact the institution directly using official contact details. 
   
   

3. Use strong passwords - create complex passwords or passphrases, mixing letters, numbers and special characters. Aim for at least 12 characters and update your passwords regularly. This is one of the best ways to keep your information secure online. Use two-factor authentication where possible. Remember, your passwords are private – never share them with others. 
   
   

   

4. Monitor accounts - regularly check your bank and credit card statements for unauthorized transactions. If you notice a transaction you didn’t make or approve, notify your bank, credit union or credit card issuer immediately. After noticing any suspicious activity, it's also wise to update your passwords for added protection. You may also wish to sign up for credit monitoring or ID protection services from one of the national credit bureaus in Canada to help you spot signs of fraud right away. 
   
   

5. Report suspicious activity - If you suspect you’ve been targeted by a scam, report it to the appropriate authorities, such as the Canadian Anti-Fraud Centre (CAFC). The CAFC also recommends contacting your local police force if you have been a victim of a scam, fraud or cybercrime as soon as possible. The CAFC supports law enforcement by sharing information gathered through reports, which helps link crimes, advance investigations, and even forecast potential threats.

Conclusion

Financial fraud is a growing concern in the digital age, but by staying informed and vigilant, you can protect yourself from becoming a victim. Understanding common scams, recognizing warning signs and taking proactive steps are crucial in safeguarding your financial well-being. 

For more information on financial fraud prevention, visit the Financial Consumer Agency of Canada. 

At CSS Pension Plan, the security of our members' and employers' data is paramount. Learn more about the steps we take to protect your data and ensure your information remains secure.