Scammers are everywhere!
For those who are unfamiliar with their flawed tactics, they have set traps. Your card information could end up in the wrong hands with just one false move. The next thing you know, you've received a notification for a $2000 transaction that you never made.
However, as a wise Canadian, you may escape all of those con artists by using a secured credit card service in Canada.
Additionally, you can learn about the typical fraudulent approaches to successfully avoid being scammed. Understanding the current scams and how these people go about executing them is the best way to keep yourself and your funds protected.
1. Phishing (3 Types)
Phishing refers to attempts to obtain sensitive data from you, including passwords or card details. Their purpose is to trick you into unintentionally installing harmful software on your computer so they can hack your data easily.
Here are some types of phishing to know:
The most popular phishing technique targets people via email (as a bank, operator, etc.) by giving a link to download an attachment or do a task.
By Voice Alteration
Scammers might call you posing as tax operators or CBSA (Canada Border Security Agency). They threaten you with a certain issue and demand you resolve it immediately by disclosing information about your accounts or paying the penalty.
They typically request wire transfers or prepaid cards as payment, making them tough to trace.
You might receive a message about a prize win or a discount on your favorite items. All you have to do is click the link they have attached or call on the number they have given. Once you click on the link, that is when the hacking begins. Calling the phone number could easily be on the other end, waiting to snatch your information for ATM use.
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2. Donation Scams
Scammers are working hard in full swing. They’re writing stories and scripts by adding every emotional dialogue they can find. Why? Because it’s easier to guilt-trip someone using emotions and even easier to ask them for help as a result of those emotions.
- Donation scammers take advantage of the generosity and kindness of people.
- They may send you an email, talk to you over the phone, or even try to persuade you with a pamphlet on the street.
- Their motive is to play with your mind by telling emotional stories.
In fact, the FTC in the United States reported shutting down a top fundraising organization that scammed 67 million people in the name of child help and veteran support for $110M.
3. Identity Theft
Identity theft entails someone utilizing someone else's identity or information while purporting to be another person. For instance, credit card fraud occurs when a scammer uses your credit information to make purchases, but you are the one responsible for paying the bill.
Here’s an actual script that has been going on via telephone:
Scammer: Hello, I am “x” from your credit card company. Depending on your good credit card history and timely payments, we have decided to offer you a 0% interest rate on your future payments.
You: OMG! That’s great. I’m so glad to hear that.
Scammer: Congratulations! Now to proceed with a new interest rate, I’m going to pull out your recent statements to ensure there is no mistake and the new interest rate applies to your profile.
You: Cool. Go Ahead!
Scammer: Perfect! Please, confirm your credit card number to avoid any errors.
Scam Alert - They won’t ask you for the card details if they're legal and authentic. Want to hear another approach used by these criminals? Listen here.
13 Money Protection Tips
Building your finances requires effort, time, discipline, and sacrifice. It’s tough to imagine a con artist hacking into your life and stealing from you so readily. But it happens. And it happens to the best of us. Hackers won’t bat an eyelash about stealing from you. And the “it’ll never happen to me” mindset certainly won’t protect you. As per the scamming statistics, Canadians lost $381M to scammers in 2021.
Hackers and scammers are only becoming more sophisticated with the use of technology. Many of them are experienced programmers and developers and only need a small window of opportunity to gain access to your private information. Extra precautions need to be taken to protect your money.
- The first tip is to go with your instinct because your hunch that something is fishy is usually right.
- Don’t open any email or link from an unknown resource.
- You can Google the website name of the email or link to see its legitimacy.
- Check the lock symbol of the link.
- Verify the HTTPS of the link.
- Trust your judgment and do your research, yet still avoid opening any sketchy links.
- Don’t call back to a missed unknown call; that might be a new scamming trick.
- Keep your social media private and avoid sharing any details or hinting at personal information.
- Don’t pick up unknown calls because if it’s important or from someone known, they will call back or leave a message.
- Scammers might do background research on all your social media profiles to create an identity you can fall for.
- Verify the identity of the organization.
- Don’t send money without an authentic recommendation.
- Check their website and run a check on the charity navigator.
Here are frequently asked questions about credit card fraud:
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Credit Card Scams - The Takeaway
We live in a digital world. And that the digital world is full of highly intelligent people who know how to manipulate it. More to that, the technology that they have access to is only becoming more and more sophisticated, making our finances and personal information more vulnerable to attacks. Following the tips laid out in this article is the best way to protect yourself from credit card scams and identity theft.
How else are you protecting your finances? Do you have the right insurance products in place? Are you prepared for an unexpected illness, accident, or possibly worse? How will your family maintain their way of life if you aren’t able to provide for them anymore? That is where Insurdinary comes in. Our licensed agents are experts in the field of all things insurance and want to help you secure your finances, home, belongings, and of course, your life.
Visit us online and explore the many ways we can help you save money. Prefer to speak to an agent? We can do that too. Call us at 1-877-574-7475. We look forward to working with you.