Scammers are becoming more sophisticated, looking for ways to bilk you out of your hard-earned cash. From postal scams to fake charities calling for contributions, to wire transfer scams, there are a number ways that fraudsters can try to get your personal financial information, or get you to pay for something.
Realize, though, that these scams are very convincing. Most of them are carefully thought out, and even smart, educated people can be taken in by them. Whenever you receive a call asking you for money, or a piece of mail describing dire actions that might be taken against you if you don't address something right now, it's a good idea to be suspicious. Here are 3 ways that you can protect yourself from scams:
1. Research
Before you send money anywhere, for any reason, look into it. One of the growing scams is for someone to pose as someone you know, and then ask for you to wire money to help them out of a tight spot. Here's the thing: Such a person could get information about who your friends are, who is in your family, and information about where you travel from social media.
Ask a question that only the other person would know. Or, better yet, tell the caller that you will call back in a few minutes. Then, call the phone number that you have for the supposed person (don't use the phone number that shows up your caller ID). You might even call the person's parents, or his or her spouse, just to verify the information.
Also, be aware that some scams use the names of legitimate companies to further draw you in. Look up the actual customer service or contact phone number, on the official web site and see it it matches up to what appears on the caller ID, or what appears in the correspondence you receive. If there isn't a match, call the true phone number, and ask. Don't ever be pressured into sending money, or agreeing to send money, without first doing research.
2. Be Wary of Giving Out Personal Financial Information
You also need to be very careful about giving out personal information, and financial information. Realise that your bank doesn't need you to recite an entire identification number, account number or credit card number. For most, four or five digits is sufficient. If someone calls you, asking for this information, or emails you asking you to send it, don't comply. Most legitimate financial institutions won't contact you this way and begin asking for identifying information or financial information. Don't share it unless you know for sure who you are talking to, because you called an official number. Even then, find out why they need the information, and be sparing with information that isn't strictly necessary.
3. Complain
If you are a victim of fraud, make sure to complain. This is especially important if your identity has been stolen. You need to make sure that your credit card accounts are properly taken care of, and that the credit bureaus have been notified. You will need to get replacements for your Canadian credit cards. You should also notify authorities. It will help bolster your assertions of identity fraud, and it might even do some good. The Royal Canadian Mounted Police has a helpful page that can help you report scams and fraud.
Image source: cellanr via Wikimedia Commons
Most problems could be solved just by following those first two. I think people fail to realize that they are falling for such scams until it is too late, but a little research and being wary of handing out information to just anyone are the best ways to keep from falling victim in the first place.
Thanks for shairng!
My identity was stolen a couple of years ago and someone tried to use my credit card at various stores, as well as applying for additional cards. Things looked suspicious to the merchant so they didn’t allow them to buy anything. Thank God! I don’t think I will ever know how they stole my identity, as I never give information out to unknown people or organizations. In the end everything worked out fine, but there were a few very frustrating months. Sometimes even these methods don’t work.