As the crisp November air settles in, it’s the perfect time to focus on enhancing your financial knowledge and security. Financial Literacy Month aims to improve financial literacy by helping Canadians and their families manage their finances wisely and save for the future. Overall, the goal is to help Canadians build financial resilience, enabling you to navigate financial decisions confidently, even during challenging times and a growing digital economy.
Safeguarding Your Financial Future: The Crucial Role of Identity Protection
At Sigma, we believe that identity protection is an integral part of financial literacy. Your financial well-being isn’t just about managing your money wisely – it’s also about protecting your identity from those who might exploit it for their gain.
Identity theft can have far-reaching consequences on your financial health. Criminals who gain access to your personal information can open credit accounts in your name, make unauthorized purchases, and even commit crimes while posing as you. These actions can severely damage your credit score which can take years to fully recover. In fact, studies show that the difference between a poor and exceptional credit score can cost you nearly $400,000 over your lifetime in higher interest rates.
How to Spot and Stop Common Scams in Canada
Being financially literate also means staying informed about the latest financial scams. This knowledge is particularly critical for older consumers with high credit scores, who are increasingly targeted by fraudsters. Some common financial scams in Canada to be aware of include:
1. CRA (Canada Revenue Agency) Scams
These fraud attempts typically either try to deceive you into thinking you’re speaking to someone from a government or other institution or trick you into sharing compromising personal or financial information. The CRA flagged that Canadians were receiving texts and emails from scammers pretending to be government officials, with fake links to claim deposits such as the Climate Action Incentive Payment.
What should you do?
According to the CRA, if a caller claims to work for the government and demands your banking information or an immediate payment, you can ask for their name, work section and office location, and verify their identity by calling the CRA directly at 1-800-959-8281 before moving forward. You can also check out the CRA’s tips to protect yourself against fraud for more information about what to do if you’re targeted by a CRA scam.
2. Banking Scams
These scams typically involve criminals posing as representatives from your bank or credit union, attempting to trick you into revealing sensitive financial information or transferring money. Scammers often use sophisticated tactics, such as spoofing official phone numbers or creating convincing fake websites. They may claim there’s an urgent issue with your account, unauthorized activity, or a need to “verify” your details.
What should you do?
If you receive an unexpected call, email, or text claiming to be from your bank, don’t provide any information or take immediate action. Instead, hang up and contact your bank directly using the official phone number on your bank card or the institution’s verified website. Remember, legitimate banks will never ask for your full PIN, password, or request you to transfer money to a “safe” account.
3. Romance Scams
Romance scams are a type of fraud where scammers create fake profiles on dating sites, apps, or social media to build a relationship with victims and ultimately trick them out of money. They spend weeks, months, or even years building trust and an emotional connection with their targets. They may claim to be working overseas, in the military, or in other professions that explain why they can’t meet in person. Eventually, they ask for money, usually for emergencies, travel expenses, or business opportunities.
What should you do?
Be wary of profiles that seem too good to be true – or if you suspect the photos might be of someone else – and if they try to move your relationship too quickly. Any request for money – especially through untraceable methods like wire transfers or gift cards – should be considered a red flag. If you suspect you’re being scammed, stop all communication immediately and report the incident to local police and the Canadian Anti-Fraud Centre.
Supporting Your Path to Financial Wellness
As we celebrate Financial Literacy Month, we want to remind you that we’re here to help protect your personal information—a crucial step in achieving your financial goals. Our comprehensive identity protection services are designed to provide peace of mind as you navigate your financial journey.
At Sigma, we believe that protecting your identity is an important part of your overall financial health.
Remember to stay vigilant, stay informed, and stay safe.
