Digital investment tools and new technology have enabled fraudsters to target large numbers of Canadians.
The Financial and Consumer Affairs Authority of Saskatchewan is warning residents to be vigilant when considering investment opportunities, to watch for warning signs of fraud, and to protect themselves from financial predators.
“Knowledge is the best defense against scams,” Financial and Consumer Affairs Authority Securities Director Dean Murrison said. “Promising risk-free investments or pressuring someone to make a quick decision are classic tactics fraudsters will use to lure you in. These scam operators are skilled and experienced, and it is easy to fall prey to their tactics. It is crucial that the public takes steps to protect themselves.”
Here are some red flags to watch out for:
* If it sounds too good to be true, it probably is.
* High returns on a low-risk investment.
“This is only available for you” pitch.
* Pressure to make a quick decision.
* Request for personal financial information.
Here are some things you can do to protect yourself:
* Check the registration of the person or company selling or advising about investments. The CSA National Registration Search is a simple and free tool for investors to use to check registrations.
* Check the disciplinary history for the person or company to find out if they have broken regulatory rules in the past. It is easy to do, using the Canadian Securities Administrators Cease Trade Orders database and the list of disciplined people and companies.
* Know exactly what you are investing in. Take time to research the investment and see if it actually exists.
* Seek professional advice about the investment.
* Do not give out personal financial information to strangers.
* Appearances can be deceiving: a sleek website, big words, or a polished presentation doesn’t mean that it’s not a scam.
If you have questions or concerns about investment fraud, contact the FCAA Securities Division at 306-787-5936.
For more information about investment fraud, visit https://fcaa.gov.sk.ca/consumers-investors-pension-plan-members/investors/investment-fraud.
12 tools in a fraudster’s toolbox: a dozen dirty tricks used by scammers
(The following article, which outlines the techniques used by fraudsters, is posted on the AARP website (www.aarp.org). The Gazette is reproducing the article here because of its value in recognizing how crooks manipulate their victims over the phone or online.)
By KATHERINE SKRIBA
AARP (www.aarp.org)
Criminals hunger for your Social Security number, date and place of birth, mother’s maiden name, and other identifiers.
They siphon information from data breaches, the dark web and public sources such as social media sites and employee directories. Using subterfuge, they have no qualms about trying to pry it directly out of you. This personal data fuels a long list of financial crimes. Here are a dozen of the most common tactics used by scammers to fool victims and perpetuate fraud.
1. Spoofing
Does caller ID show the same area code and prefix as yours? That incoming call could be from anywhere — even a foreign country. Spoofing is falsifying data on caller ID to disguise who’s on the line. In a bid for authenticity, the spoofed number could belong to a legitimate government agency or a business known to you.
2. Phishing
So-called “phishing” emails, calls, texts and letters try to trick you into sending cash or disclosing personal information. Or, the correspondence aims to allow a bad actor to infiltrate your computer device and steal sensitive information. Microsoft, for example, has warned that cybercrooks send phishing emails from rnicrosoft.com—note the “r” and “n” were combined to appear at a glance as an “m.” The word phishing — which dates to 1996 — combines “fishing” and “phreaking,” the latter a term for using an electronic device to avoid paying for phone calls, says Merriam-Webster. Phreaking likely was born from the marriage of the words “phone” and “freak.”
3. Fake profiles
Anybody can disguise his or her identity on social media, dating platforms or other sites. In 2019, the Pentagon warned about an increasing number of impersonator accounts on Twitter that hijacked the identity of Marine Gen. Joseph Dunford, then chairman of the Joint Chiefs of Staff. That prompted the Air Force chief of staff to chime in: “The same goes for me — I won’t ask for money, your email account or other personal information. Please continue to report impostor pages.”
4. Fake photos
Images can be copied or stolen from the internet — or altered — to lend credence to a bogus profile or website.
5. Fake entities
Phony businesses, charities, political action committees and the like — they’re sheep’s clothing for the wolves at your door.
6. Fake claims
Bad actors use a variety of scripts to persuade you to open your wallet and drain your financial accounts. Examples: “You’ll be arrested if you don’t …” or “You’ve won a prize, but first must pay ….”
7. Fake names, credentials and badge numbers
Names, titles and such may suggest authority, but in reality be phony baloney.
8. Computer pop-ups
Pop-up warnings can show up on your computer. Alarms may sound. Click on a suspicious link or open an attachment and malware — that’s software used for malicious purposes — can compromise your computer system and steal your data. Never call the phone number that appears on a computer pop-up.
9. Robocalls
About 58.5 billion robocalls — a record — bombarded phones in the U.S. in 2019, and 25.9 billion, or 44 percent, were scam calls, according to an industry estimate. Huge numbers of internet-based calls can be made every day at very little cost to con artists, even those overseas.
10. Lead lists
These are rosters of people who have fallen victim to cons and, as such, potentially are soft targets for more mischief. Criminals swap and sell what they callously call “sucker lists.”
11. Secrecy
Crooks often insist their targets keep silent about what they’re being instructed to do. They’re trying to prevent a family member or friend from stopping a scam in its tracks.
12. Persuasion
Criminals excel at blarney and use flattery and charm to ingratiate themselves and gain your trust. Alternatively, they may threaten violence to frighten you to act. The goal is the same: to compel you to cough up cash or sensitive data. And the perpetrators