Financial scams and fraud come in many different forms. Sometimes they arrive in the form of a text message, email, or phone call, and often these forms of fraudulent communications are designed to look like they are coming from your bank.
According to the Canadian Anti-Fraud Centre, a common type of financial fraud in Canada involves scammers posing as bank employees in order to trick customers into disclosing their banking or personal information.
Sometimes these frauds involve a scammer phoning their target and pretending to be a bank employee who needs their help as part of a “fraud investigation.” Scammers, posing as bank employees, may also try to convince someone that their bank needs their physical debit or credit card, and offer to pick it up from their house. Many of these scams are designed to get you to respond to questions or requests that a bank would never ask.
In fact, one of the best ways to protect yourself from these kinds of scams is to learn what your bank would never ask you to do.
Your bank would never call you to ask for personal information
When you call your bank to ask a question or to perform a service, the bank employee on the other end of the phone may ask you some personal details to confirm your identity before providing you with services.
However, a bank would never call you and then ask you to provide personal information, such as your debit PIN or online banking password. So, if someone calls you claiming to be from your bank and asks you to provide personal or account information, hang up and call the number on the back of your bank card.
Your bank would never ask you to keep a secret or be dishonest
Some frauds involve scammers talking their target into sending money. To get access to your money with as little intervention as possible, scammers will sometimes instruct you not to tell branch staff why you are withdrawing or sending money. Scammers will sometimes even provide you with a phony cover story to tell the branch employee – such as that the money is for a family member overseas. One common type of fraud where the scammer instructs you to keep a secret is the so-called Grandparent Scam.
Remember that it's important to always be honest with branch staff as they are the first line of defense in helping to protect your money.
Your bank would never threaten to cancel your services or rush you into doing something
Many scams involving fraudulent text messages or emails will falsely claim that your account is locked, or threaten to close your account unless you click on a link and provide more account details.
Any time you receive a message purporting to be from your bank prompting you click on a link or perform an action in a specified period of time or else “your money will be lost or your account frozen,” that's a red flag that the message is fraudulent.
Your bank would never ask you to help with an investigation
One of the more common scams is known as the Bank Investigator Scam which typically involves receiving a phone call from a scammer posing as an employee of the fraud department at a bank.
In the case of this fraud, the scammer often provides a fraudulent name and employee number and tells you either that your accounts have been compromised or that the bank is investigating a series of fraud cases that have been committed by staff at your branch. The scammer goes on to ask you to assist with a joint law enforcement investigation into the compromise, suggesting that it is vital this information is kept confidential.
In some cases, to help encourage participation, the scammer offers compensation. They will then try and convince you to disclose your banking information under the guise of helping with the investigation. The scammer will then use this information to remotely gain access to your computer and ultimately your bank accounts. You may even see money deposited into your account; however, this is often the scammer moving funds from your other products (e.g. line of credit or credit card). Neither your financial institution nor law enforcement organizations will ask citizens to help with a fraud investigation, nor would they try to offer financial compensation for doing so.
Your bank would never ask you to purchase gift cards
In a number of scams, the scammer will pose as an employee from your bank – sometimes through a caller ID spoofed phone number – and ask you to purchase gift cards on their behalf to help them out of a made-up situation.
Your bank would never request access to your computer
Under no circumstances would your bank ask you for remote access to your device. If you receive a call from someone who says they are from your bank and they need you to download software onto your computer for any reason, hang up the phone.
How to avoid falling victim to one of these scams
Don't assume: Though your call display might say the call is coming from your bank, don’t assume the caller is legitimate. Scammers often use call spoofing technology so that your call display shows the name of a company or financial institution to make you believe their request is authentic.
Protect your personal information: When you call your bank, a bank employee will ask basic questions to confirm your identity before providing you with any services. However, they will never call you and ask you for your passwords or your PIN on the phone. If you feel uncomfortable with the call or feel like you are being asked questions that feel too personal, hang up.
How can you protect yourself from a scam?
Understand your responsibilities as an account or card holder. This information is provided by your bank and outlines your commitments.
Enable two-factor authentication: Look in the security settings of your email provider, social media platforms, and banking apps and enable two-factor authentication or two-step verification wherever it’s available. This offers a higher level of security for your online profiles, but it's rarely the default set by providers. For more information on how TD uses two-step verification to protect your online and mobile banking, click here.
Get educated: The Canadian Anti-Fraud Centre can help you learn more about common fraud scams so you can avoid them. You can also visit the TD Fraud Hub to learn more about ongoing fraud trends and ways to protect yourself.
Stay informed: By using free services like TD Fraud Alerts, which TD customers are automatically enrolled in if the Bank has your current mobile phone number on file, you'll receive text messages notifying you if there’s suspicious activity detected on your TD credit or debit card.
If you've been the target of a scam:
Report it: If you or a family member has been the target of a fraud or scam, report it to your local police, as well as the Canadian Anti-Fraud Centre.
Talk about it: If you've been the target of a scam, share your story. The more people who know about these scams, the harder it may be for fraudsters to take advantage.
Want to learn more about your money?