Fraud involves deception through the use of elaborate or even unsophisticated scams designed to steal money, or to profit somehow over a breach of trust. “Identity fraud is the biggest fraud out there,” said Shelly Dahlman, the Branch Manager of CIBC in Assiniboia. Dahlman was speaking about the different methods fraudsters might employ during a Lunch and Learn at the Assiniboia Chamber of Commerce on January 23.
Identity theft is the acquirement of an individual’s personal information for criminal means. Identity theft is an act of thievery and could involve the impersonation of someone by using their credit and debit cards, or other items associated with the victim. Criminals could use personal information to gain access to bank accounts, transfer funds and make purchases. Ingenious and highly motivated fraudsters might even open bank accounts in the victim’s name then apply for loans and credit cards.
Low-tech identity theft has involved dumpster diving or mail theft with the objective of uncovering private data to use for unlawful means. However, phishing is an updated, computer-based technique in fraud. Online swindlers might imitate legitimate businesses. They’ll ask for passwords or banking information. “Pay attention to the fine details,” Dahlman advised, also telling her audience to be aware of any questionable emails requesting personal information. “Watch out for spelling and formatting details,” she cautioned. “Make sure you’re protecting yourself.” An effective way of detecting fraud from an email originating from a purported government agency or business is to hold the mouse over the address to see if emailer is legit. Also, Dahlman recommended her audience to have a second email to use whenever a person is buying or selling items over the internet, which will assist in keeping personal information intact.
Dahlman also emphasized the importance of protecting pin numbers from unlawful sources. If the targets of bank fraud wish to reclaim their lost funds, they can do so if they haven’t released their pin numbers to their online hoaxers. “You’re guaranteed 100 per cent for online fraud as long as you haven’t given out our pin number,” Dahlman affirmed. Therefore, securing pin numbers is crucial. “If you have to write your pin numbers down, disguise them,” she advised. Dahlman further counselled her spectators to avoid using obvious sequences for passwords and pins, such as 1,2,3, 4. “Use thoughtful numbers and sequences,” Dahlman suggested.
Cheque fraud remains one of the oldest and common kinds of financial fraud. “Reduce the amount of cheques you use,” Dahlman proposed, further recommending people who lived in communal living situations such as senior residences not to use cheques at all.
Fraudsters are discovering newer and creative ways to steal money. Dahlman talked about the emergency scam, when a grandparent accepts a phone call from a swindler alleging to be a grandchild in financial trouble. “I have personally seen this lots of times,” Dahlman disclosed. “Ask them something personal so you know it’s them,” she said. The grandchild’s location can be confirmed by asking another family member. The story should also be reviewed to see if either the request or the emergency makes sense. Cash should never be sent unless the identity of the caller is positively identified.
Other scams have involved Amazon gift cards. The particulars of each scam could vary, but the arrangements often match. Scammers will connect with the victims by phone, email or social media. They will create a sense of urgency by saying they require payments through gift cards because of a personal issue of great severity or an emergency. The con artists will ask for the claim code on the gift card by phone, text or email prior to disappearing with the victim’s money.
