November is Financial Literacy Month in Canada, a time dedicated to improving financial awareness and decision-making. At LCTaylor, we’re proud to support this initiative, especially when it comes to protecting Canadians from financial fraud.
This year, fraud prevention is more important than ever. The COVID-19 pandemic has created new opportunities for scammers, many of whom are targeting people who rely on government assistance programs like the Canada Emergency Response Benefit (CERB) and the Canada Recovery Benefit (CRB). With so much uncertainty, it can be difficult to tell the difference between legitimate communication from the government and fraudulent calls, emails, and messages.
Here’s what you need to know to spot financial fraud, protect yourself, and take action if you become a victim.
What Is Financial Fraud?
Financial fraud occurs when someone deceives you for financial gain. This could be an individual, a group, or even a company that misleads you into sharing personal information, sending money, or making poor financial decisions.
The Most Common Financial Scams
- Identity Theft – A fraudster steals personal details like your Social Insurance Number (SIN), date of birth, passwords, or banking information to open fraudulent accounts in your name. You could be left with debt you didn’t create—but your creditors will still expect repayment.
- Confidence Scams – Someone gains your trust and then exploits it. They might impersonate a government official, a financial institution, or even a family member to convince you to send money or share sensitive information. Example: A scammer posing as a Canada Revenue Agency (CRA) officer calls and pressures you into paying a “tax debt” that doesn’t exist.
- Pressure Scams – Fraudsters put you in a stressful situation where you feel pressured to make a snap financial decision. Example: A door-to-door salesperson claims to be checking your water quality. Once inside, they tell you your system is unsafe—convincing you to purchase an expensive, unnecessary upgrade on the spot.
- Online Scams – Fraud is moving increasingly online. Fake emails, texts, and websites impersonate banks, government agencies, or even your employer. Clicking a link or entering your details can give fraudsters access to your financial accounts, passwords, and personal information.
How Can You Protect Yourself?
Fraudsters rely on speed, confusion, and fear. They pressure you to act quickly—before you have time to think. But by following these key steps, you can protect yourself:
- Slow down and verify:
- If someone calls claiming to be from the CRA, your bank, or another trusted institution—don’t engage. Hang up and call the agency back at their official number.
- Never assume a call display is accurate—scammers can fake phone numbers.
- Never share personal information.
- Your bank, the CRA, and other legitimate organizations will never ask for your SIN, credit card details, or online banking passwords over the phone or via email.
- If you did not initiate the contact, do not provide personal or financial details.
- Don’t let anyone pressure you into a decision.
- If someone demands immediate payment, asks for gift cards as payment, or says a special offer is “only available right now”—it’s a red flag.
- Take your time to verify details, no matter how urgent the situation may seem.
- Be cautious of unexpected emails and messages.
- If you receive an email or text that looks like it’s from your bank, government agency, or a company you do business with, don’t click any links.
- Instead, go directly to the official website and log in from there.
What to Do If You’ve Been a Victim of Fraud
If you suspect fraud, take action immediately. The faster you respond, the better your chances of limiting the damage.
- Report the Fraud
- Municipal: Contact the Winnipeg Police Service to report the incident.
- Provincial: File a report with the Consumer Protection Office of Manitoba.
- National: Use the Canadian Anti-Fraud Centre website to report the scam and access resources on fraud prevention.
- Contact your bank or credit card provider.
- If your account details have been stolen, your bank can help you freeze transactions, dispute fraudulent charges, and issue new cards.
- Change your passwords and PINs.
- If a fraudster has obtained your login credentials, update them immediately.
- Be prepared for financial consequences.
- In some cases, financial fraud can leave you with debt that you’re unable to repay. If this happens, options like a Consumer Proposal or Bankruptcy may help you recover.
We’re Here to Help
Financial fraud can happen to anyone, and recovering from it can feel overwhelming.
At LCTaylor, we’re here to help. We understand how devastating financial fraud can be, and we offer compassionate, judgment-free advice to help you recover.
Contact us today for a free, no-obligation consultation. Whether you need advice on managing debt, recovering from fraud, or filing a Consumer Proposal or Bankruptcy, our team of Licensed Insolvency Trustees is here to guide you every step of the way.
Stay informed, stay vigilant, and protect your financial future.