Tag Archives: scams

Cybersecurity tips to keep your Personal Finances safe

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By Beau Peters

Special to Financial Independence Hub

How we manage our personal finances has changed over the years, notably the transition to handling more of our financial tasks online. From banking to paying bills to applying for loans to budgeting, all these things are carried out primarily online now.

We love the convenience of doing these things online. However, there’s a greater chance of your financial data being compromised. But if you can adopt these cybersecurity practices, better financial management and security will result.

Educate yourself on Phishing and other Scams

To protect your personal finances from security threats, you must know what they are. Educating yourself on how your financial information could be potentially stolen and used in harmful or criminal activities is essential.

For example, phishing is when a person is contacted by someone that seems legitimate via email, phone, or text message. Because the person seems like they’re a legitimate contact or work for an honest company, people are more inclined to give up the personal information they’re asking for. Phishing scams surged in the wake of COVID-19 due to the urgent need for clarity.

To avoid having your finances compromised in a phishing scam, learn what different phishing communications look like. Look closely at the details and tone of the messages. And trust your gut if you feel like “something is off” with any communications you get.

Educate yourself on these common scams as well:

  • Overpayment scams;
  • Employment scams;
  • Lottery and prize fraud;
  • Debt collection scams;
  • Family emergency/kidnapping scams.

The more you know about potential security threats to your personal finances, the better. Continue Reading…

8 ways to protect Seniors from Financial Fraud

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By Mikayla St. Clair

Special to the Financial Independence Hub

There are tons of financial scams aimed at taking advantage of senior citizens. One of the key reasons the elderly are targeted for scams is that many of them grew up when deals were made and based on a person’s word and character. A handshake, many years ago, was enough to trust someone. Many elderly and senior citizens grew up in an era when people were more trustworthy, and scams like financial fraud were not as prevalent as today. There are other reasons why the elderly are targets for financial fraud, and understanding how thieves go about stealing from senior citizens will go a long way in prevention. Here are eight ways to protect seniors from financial fraud.

1.) Shred sensitive documents

A good shredder can go a long way in preventing financial fraud, but it only works if you use it. Many people fail to shred sensitive documents and simply throw them in the trash. Thieves aren’t above going through your trash in hopes of gaining your social security number and other information they can use to open fraudulent accounts or gain access to accounts already open. Shredding the personal documents of seniors helps to prevent others from gaining access to their sensitive information and creating fraudulent accounts in the senior’s name.

2.) Check Credit reports regularly

It’s essential to check the credit reports of older adults under your care. Credit reports should be reviewed twice a year or annually at a minimum. Look for any errors, suspicious charges, or accounts that you don’t recognize. Correct these errors immediately and close any unauthorized accounts. Using a professional credit monitoring service to monitor a senior loved one’s credit is also an excellent way to protect the elderly from financial fraud.

3.) Be cautious of new relationships, friends, and family

Seniors can be more trusting than younger people, especially if they are lonely. Many thieves and fraudsters use loneliness as an entry-point into senior’s life to gain access to financial information or trick them into giving them money. It’s also important to be cautious of friends and family members who may have an addiction or severe financial problems. Sadly, many cases of financial fraud against the elderly are committed by a family member or friend.

4.) Use a Power of Attorney if necessary

In some instances, it may be necessary to take full control of a senior’s finances through a financial power of attorney. A financial power of attorney may be necessary when a person has a mental condition such as dementia or Alzheimer’s. Seniors with these disabilities are often targets because of their health.

A financial power of attorney can give you full control of a person’s finances. If the senior is a family member, discuss the matter with others in the family to determine the best choice for managing the person’s financing.

5.) Watch for changes in Spending

Keep an eye on the spending habits of any older adult in your care. Continue Reading…

Be the first line of defense: top tips to prevent financial fraud

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By Brent Reynolds, Capital One

Special to the Financial Independence Hub

As social media becomes ever prevalent in our lives, we have become increasingly accustomed to sharing personal details with friends, family and coworkers. While there’s certainly no harm in sharing vacation details or family photos with your network, this culture of sharing can lead to troubling consequences when it extends to personal financial information.

In the spirit of Fraud Prevention Month – an educational campaign each March that encourages Canadians to recognize and reject fraud – I’d like to offer a few tips to help empower Canadians to be their own first line of defense.

Protect your personal details

Our recent fraud prevention study found 47% of Canadians have shared their credit card number over the phone, via email or through the mail. One in five Canadians (22%) also admit to sharing their banking information via email, where the risk of phishing is high.

When it comes to sharing your personal information, always be cautious. Whether it’s over the phone, in person, through the mail or on the Internet, always know who you are sharing your personal or financial information with and why. If a call or email seems questionable, end the communication and visit the company’s secure website to contact them directly.

Select a strong PIN and protect it

While it may seem harmless to share your PIN with family members (in fact, 40% of Canadians admit to doing it), a PIN should never be shared with anyone. Select a secure and difficult-to-guess PIN that isn’t based on personal information like a birthday, address, SIN number or telephone number. Make sure you choose a unique PIN for each card. And, when accessing an ATM or paying with your card, be aware of who is around you and cover the keypad when you enter your PIN. Finally, if you’re going to store your PIN somewhere, make sure you choose a secure location and never write it on or store it near your card.

Take advantage of any features your card issuer offers

Continue Reading…

How to avoid Fraud in your Retirement Plan

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By Jeanine Skowronski

Special to the Financial Independence Hub

Believe it or not, your retirement plan can be at risk for fraud. In fact, in the 2015 fiscal year, the (US) Department of Labor closed 2,441 civil investigations into retirement plans and recovered US$696.3 million for direct payment to plans, participants and beneficiaries. Retirement fraud can occur in several ways: employees with access to your workplace benefits may skim from the top. Or, beyond that, you may be tricked into taking on risky or non-existent investments outside of your day job.

For businesses, avoiding fraud all comes down to implementing solid internal controls — that’s per the Internal Revenue Service, which actually has an Employee Plans Compliance Unit (EPCU). For consumers, it comes down to vigilance. Here are some personal finance insights to help you avoid fraud in your retirement plan:

1.) Check your Retirement accounts regularly

Most employees set up their employer-sponsored 401K account and forget it. Or they give their quarterly statements a passing glance before chucking them aside. (Note: It’s important to shred all sensitive financial documents before discarding.) However, failing to log into your account regularly means you’re missing out on spotting potential red flags.

Continue Reading…

Tax evasion schemes land “De-taxers” in jail

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David Rotfleisch-03-500W
David Rotfleisch

By David J. Rotfleisch

Special to the Financial Independence Hub

When “de-taxers” use best business practices such as franchising and friends and family of multi-level marketing (MLM) techniques, you know that even fringe thinkers are watching and learning from the likes of “Dragon’s Den” and “Shark Tank.” Entrepreneurialism, it seems, has caught on in the tax evasion industry.

They’re running seminars and courses, and selling books, CDs, and DVDs, to teach fringe thinkers and gullible Canadians that it’s their God-given right not to pay taxes and here’s how to do it:  commit fraud by evading tax. They are “educational,” setting up schools to do this.

And they do this for fees, of course.

Two de-taxer founders now in jail

De-taxers have been on Canada Revenue Agency’s radar for a long time and the founders of two different tax evasion schemes have been jailed recently. Tax protestors have gone from nuisance to serving jail time, plus hefty fines, in short order.

Continue Reading…