How to avoid consumer fraud

November marks Financial Literacy Month in Canada. To help ensure you don’t get scammed out of your hardearned money, here’s an overview of how to detect some of the most common types of consumer fraud.

Identity theft

Identity theft occurs when someone steals your personal information, such as your name, social insurance number and bank account information. A few ways to safeguard your information include:

• Use complex, secure passwords on all your online accounts

• Shred credit card receipts, utility bills and bank account statements

• Leave important ID documents at home in a safe place If you don’t know why someone is requesting your personal information, it’s always a good idea to ask them for clarification.

Debt collection fraud

This type of fraud happens when scammers pose as collection agencies and demand payment of fake outstanding debts.

Fraudulent debt collectors will:

• Withhold information from you, including the exact amount of the so-called debt and the name of the creditor

• Pressure you to pay with cash, a prepaid debit card or by money transfer

• Ask for personal information, such as your bank account or social insurance number Never share any financial or personal information unless you’re 100 per cent certain you’re dealing with a real collection agency.

Tharity fraud

This kind of fraud occurs when phony fundraisers request donations for a charitable organization. Fraudulent charities will:

• Pressure you to donate immediately

• Only accept cash, gift cards and wire transfers

• Refuse to provide detailed information about the organization To avoid a charity scam, ask for information in writing before you donate. Lastly, you should always trust your gut instinct. If something feels off, it probably is.