Financial scams can happen to anyone. Fraudsters may contact you by phone, email, text message or social media, and they often impersonate organizations or people you know and trust. Scams can be difficult to recognize, especially when fraudsters create a sense of urgency or use personal information to make their messages seem legitimate. The good news is that knowing what to look for can help you protect yourself.
Scams take many forms, but they often share some common warning signs.
Be cautious if someone:
If something feels unusual, stop before you act.
Fraudsters continually develop new approaches, but several types of scams are particularly common.
Phishing messages are designed to look like they come from a legitimate organization, business or person. A message might claim that there's a problem with your account, a payment or a delivery and ask you to click a link or provide information.
Don't use links in unexpected messages to access your financial accounts. Instead, visit the organization's official website or use the phone number you normally use to contact them.
Fraudulent text messages may claim that you've received a refund, owe money, have a delivery problem or need to verify an account. Be especially cautious when an unexpected text asks you to click a link or provide personal information.
A fraudster may pretend to be from your financial institution, a government agency, a business, the police or even a family member. The caller may know some information about you, which can make the request seem legitimate. Don't assume a caller is genuine simply because they know your name or other personal details.
Romance scams often begin through social media, dating platforms or online communities. After establishing a relationship and building trust, the fraudster may ask for money or financial assistance. Be particularly cautious if someone you've met online asks you to send money, invest on their behalf or provide access to your financial accounts.
Investment scams can involve promises of unusually high returns, guaranteed profits or exclusive investment opportunities. Fraudsters may use professional-looking websites, fake testimonials or social media advertisements to appear legitimate. Before investing, independently verify the person and organization offering the investment. Don't rely solely on information provided by the person contacting you.
A fraudster may pretend to be a family member or someone close to you who urgently needs money. They may claim to have been involved in an accident, arrested or stranded somewhere. Don't let urgency prevent you from verifying the story. Contact the person directly using a phone number you already have rather than replying to the unexpected message.
A few simple habits can reduce your risk of becoming a victim of fraud.
If someone unexpectedly contacts you about your money or personal information, don't feel pressured to respond immediately. End the conversation and contact the organization using a trusted phone number or website.
Your financial institution should never need you to disclose your online banking password or PIN. Never share security codes sent to your phone or email unless you are certain why they are being requested and who you're dealing with.
Don't click links in unexpected emails or text messages, particularly if they ask you to log in, make a payment or provide personal information. Instead, navigate to the organization's official website yourself.
Use unique passwords and enable multi-factor authentication wherever it is available. Keep your operating system, apps and security software up to date.
Regularly review your bank and credit card accounts for transactions you don't recognize. The sooner you identify suspicious activity, the sooner you can take action.
If you're unsure whether something is a scam, ask someone you trust before sending money or information. You can also contact your financial institution using an official phone number and ask for guidance.
There is no shame in asking.
If you've sent money, provided personal information, shared a password or believe someone has accessed your account, act quickly. Contact your financial institution using its official contact information and explain what happened.
Depending on the situation, you may also need to:
Don't be embarrassed or afraid to report a scam. Fraudsters are skilled at manipulating people, and being targeted doesn't mean you were careless.
It's important to understand how your financial institution communicates with you. For example, YNCU states that its financial advisors will not ask members for their passwords or PINs. If you're uncertain whether a communication is legitimate, don't respond to it. Contact YNCU through a trusted channel and ask whether the communication was genuine.
Scams evolve constantly. Fraudsters adapt their tactics to current events, new technologies and the ways people communicate. For current information about fraud trends and reporting, consult the Canada Anti-Fraud Centre and other official Canadian sources. Learning to recognize the warning signs is one of the best ways to protect yourself — but if something does go wrong, remember that you're not alone. Contact your financial institution as soon as possible and take action.
This article is for general educational purposes only and does not constitute financial, legal, cybersecurity or other professional advice.