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Recognizing and Preventing Fraud

Recognizing and Preventing Fraud
Only we as consumers can protect ourselves from fraudulent scams. Thousands of Canadians are victims of fraud each year, costing an estimated 10 billion dollars annually

The impact of fraud can be significant and devastating: loss of retirement savings, homes and even businesses. While we’d all like to believe that fraud couldn’t happen to us, however, victims vary greatly in age and economic backgrounds. Fraudsters are relentless and savvy.  

The best way to protect yourself from fraud:  

  • Awareness and recognition of fraud 
  • Discuss fraudulent scams with everyone in your life 
  • Report fraud when it is suspected or occurs
From the Competition Bureau of Canada:  

Thousands of Canadians of all ages and from all walks of life are defrauded each year. There is no typical fraud victim in Canada. Fraud targets Canadians of all ages and from all walks of life. 

Recognizing fraud is the first step to better protecting yourself. Fraudsters are professional criminals that know what they are doing. Fraudsters rely on some basic techniques to be successful. These include: 

  • Developing professional-looking marketing materials 
  • Providing believable answers to your tough questions 
  • Impersonating government agencies, legitimate businesses, websites, charities, and causes 
  • Pretending to be your ordinary supplier 
  • Hiding the true details in the fine print 
  • Preying on areas of vulnerability, including those needing help with loans or finding employment 
  • Asking for fees in advance of promised services 
  • Threatening legal action to collect on alleged contracts 
  • Falsely claiming affiliation with reliable sources, such as legitimate news sites to support their products or services and exchanging victim lists with other fraudsters. 
Think you’re fraud savvy? Take this quiz. 

When it comes to fraud: recognize, reject and report. 

Please share this article with your loved ones.