Protecting Your Identity and Finances from Cybercrime: Tips for Canadians

Canada Financial Literacy Month is here, with this year’s theme focusing on Managing Your Money in a Changing World. In the midst of digital advancements, it’s crucial to understand the risks of cybercrime and safeguard yourself from identity theft and fraud. In this article, we will explore ways to shield yourself from cybercriminals and secure your financial future.

Cybercrime: A Growing Threat to Canadians

With the digital landscape constantly evolving, cybercrime is increasingly on the rise. In 2022, there were over 19,500 reported cases of identity theft in Canada, resulting in an estimated $530 million in losses. However, experts believe the actual amount could be significantly higher due to underreporting.

Understanding Cybercrime

Cybercrime refers to activities committed through the Internet or computers, generally resulting in fraud. Fraudsters can utilize stolen data to open bank accounts, acquire loans, and drain your accounts. Victims might not realize the breach occurred until weeks, or even months, later.

Common Types of Cybercrime

1. Mass marketing fraud: Fraudsters use emails, phone calls, or text messages to impersonate legitimate businesses and organizations.
2. Identity theft: Fraudsters steal personal identification documents to impersonate you and commit financial fraud.
3. Phishing, smishing, and vishing: Fraudsters use email, text messages, and voicemail to trick victims into sharing personal or financial information under the guise of legitimate enterprises.
4. Deep fakes/AI: With the help of artificial intelligence, cybercriminals can create seemingly authentic communications or impersonations.
5. Scams: Scammers use various methods to build trust and obtain sensitive information or investments from their victims.

Combating Identity Theft and Cybercrime

Protecting yourself from identity theft and cybercrime is vital to prevent devastating consequences. Consider the following 12 steps to secure your personal and financial information:

1. Be cautious and verify contact: Only share sensitive information over the phone or the Internet if you’ve initiated contact.
2. Secure your documents: Keep all personal and financial information in a safe place when expecting visitors or service providers.
3. Guard your Social Insurance Number: Refuse to disclose this sensitive information unless entirely necessary.
4. Ignore urgent requests: Double-check the authenticity of any request for funds or information before responding.
5. Securely dispose of documents: Shred or otherwise securely destroy any personal documentation that contains sensitive information.
6. Use complex passwords: Choose strong and unique passwords for each account.
7. Watch what you share online: Minimize the personal information you share online and keep your privacy settings secure.
8. Employ credit protection: Subscribe to credit monitoring and protection services provided by credit bureaus.
9. Check your homeowner’s insurance policy: Ensure that it covers identity theft protection.
10. Fortify your devices: Install robust security systems on all devices.
11. Be cautious with public Wi-Fi: Avoid sensitive transactions on open networks.
12. Update your passwords regularly: Make it a practice to change your passwords every few months.

When to Seek Help

When victimized by online fraud or a scam, recovering from the financial duress can be long and arduous. Filing a police report is essential to bring the perpetrators to justice, but the chances of recovering lost funds are slim. If cybercrime leaves you overwhelmed with unsustainable debt, our team of Licensed Insolvency Trustees at Allan Marshall & Associates can help you explore your options. Contact us today for a free consultation at 1-888-371-8900. Taking immediate action is crucial to securing your financial future and achieving financial wellness.