By Jasmin Brown

BDO Debt Solutions

Watching Out for Fraud & Scams

May 15, 2023 | 9:03 AM

“The views and opinions expressed in this article are those of the author and do not necessarily reflect the position of Pattison Media and this site.”

It is becoming more and more common for people to report frauds or scams as a cause of financial difficulty. In addition to the negative financial impact of falling victim to a scam, victims of fraud also experience feelings of shame, foolishness, frustration, and embarrassment. They often have a fear of being judged. However, it is not that hard to believe that we are seeing more victims, because scammers have become sophisticated, highly skilled and use a variety of practiced techniques that prey upon the vulnerabilities of many people. Fraud losses nearly doubled in Saskatchewan in 2022 compared to 2021.

Common Frauds & Scams

There are many practiced techniques that scammers use to get money from individuals fraudulently. Common scams to watch out for are:

· Investment scams such as cryptocurrency scams or ponzi schemes;

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· Calls advising that any of your personal information has been compromised;

· Online employment scams (high pay for little work, unsolicited job offers);

· Online purchase scams (websites that look and feel the same as legitimate sellers and make offers for products at huge discounts);

· Emails or texts claiming to be financial institutions, Canada Revenue Agency, or legitimate companies that are attempting to get your personal information;

· Charitable organization scams that pressure you to send money on the spot and sometimes sign up for automatic monthly donations by credit card;

· Prize offers, where people are told that they have won, or have a chance to win something, but first must often pay an advance fee;

· Recovery offers where a false agency offers to assist victims that have lost money in a scam to recover the funds for a fee;

· Romance scams where the potential partner lives far away, gets serious quickly, avoids in-person or video contact, and asks for money for emergencies, medical bills or travel.

Tips for Avoiding Frauds & Scams

To avoid frauds and scams it is important to have a heightened level of awareness. Some important tips to follow are:

· Know that there are no “get rich quick” schemes – if something seems too good to be true, it probably is;

· Be skeptical of people claiming they will give you “guaranteed returns”;

· Watch for offers that require an upfront fee or gift cards before providing you with a prize, debt relief, employment, or windfalls;

· Get independent advice if an offer involves money, personal information, time or commitment;

· Do not hand over money, personal information, or sign anything until you have had the opportunity to do your homework;

· Log on to a website that you are interested in directly rather than clicking on links in emails or text messages;

· Never spend money or give credit card or banking information to anyone you do not know or trust;

· Do not wire money to a stranger, even if you feel that you have been developing a relationship online;

· Be on alert for unsolicited calls and emails, where they contact you.

What to do if you have been a victim of fraud

· Gather the information pertinent to the situation

· Report the incident to your local police department

· Advise the bank, credit card issuer, or companies that are involved

· Report the scam to the Canadian Anti-Fraud Centre

· Get the appropriate mental health support that you need to process the emotional distress that often accompanies these situations

If falling victim to a scam has impacted your financial health and increased your debt to an unmanageable level, reach out to a Licensed Insolvency Trustee to discuss your options. A Licensed Insolvency Trustee will meet with you in an empathetic, non-judgmental environment to understand your situation and offer you with solutions to help you get a fresh financial start.

If you are having trouble making ends meet each month, finding the right debt solution can help. Visit the BDO Debt Solutions website for more information about bankruptcy, or call 1 855 BDO DEBT to book a free, no obligation consultation.

Jasmin Brown is a Senior Vice President overseeing the insolvency practice in Saskatchewan. She is committed to providing creative and practical debt solutions with empathy, understanding and professionalism to help people overcome their financial difficulties.