We all get emails and phone calls from legitimate companies and organizations that we do business with, but phone fraud is on the rise so it’s important to figure out if you’re being contacted by the legitimate company or by a criminal.

How the scam works

Phone fraud is a type of phishing scam. Criminals will call you or leave voicemail messages to try to trick you into revealing personal information or into sending money or gift cards.

In some variations of the scam, you’ll receive a call or a voicemail from a criminal who is posing as a government agency or member of law enforcement. The message says you have an overdue balance or outstanding debt or that there is a warrant out for your arrest. In other variations of the scam, the criminal may pose as a bank employee asking you to assist them with an investigation into fraudulent activity on your bank or credit card account.

Sometimes criminals will send emails warning of a security alert and directing you to call a local or toll‑free number where an automated attendant will ask you to punch in personal information, such as your credit card number, social insurance number or online banking password. After you do that you may be disconnected without speaking to anyone, but the criminals will have your information.

How to spot the scam

Phone scams can take several forms and the calls and voicemails may sound very authentic, but there are often red flags that the communication is a scam:

• Very often the calls and voice messages use threatening and aggressive language to frighten and bully you into paying the phony debt or providing your login credentials. Or the message might claim that you’ve won a prize or have qualified for a special deal.
• The calls or messages include warnings that they’ll contact police if you don’t reply.
• The caller demands that you pay your outstanding debt in gift cards, bitcoin or by wire transfer.

How to protect yourself

Banks take extensive steps to protect the personal information you entrust to them and to help you protect it as well.

• If you are dealing with a legitimate company, they know who you are and will address you by name in an email or phone call.
• Banks and government agencies will never request gift cards or prepaid cards in payment of a debt or bill.
• Government agencies will never contact you and tell you that your Social Insurance Number (SIN) is blocked.
• Police officers will never present themselves at your residence to demand a payment.
• In some cases, your bank may contact you by phone or leave you a voicemail if they suspect fraudulent activity on your accounts. As part of a legitimate conversation with your bank, you may be asked verification questions so the bank can ensure that they are speaking to the right person. You will not be asked to verbally provide any Personal Identification Number (PIN) or banking password or enter you PIN or password on your telephone keypad. As part of the verification process, your bank will never ask you for your SIN.
• Avoid using the phone number provided in the email or in the voicemail you receive. You can validate that the call is legitimate by contacting your bank using the phone number on the back of your card, on your statement or a published number you have looked up yourself.

What to do if you think you might be a victim of phone fraud

If you receive an email or voicemail from someone you suspect may be a fraudster, do not respond using the phone number provided. Instead, contact that organization at a phone number you know is accurate, appearing on a debit/credit card or bank/credit card statement; on a bill; or published on a known, legitimate website and let the organization know the details of the suspected fraudulent incident.

If at any time you are not comfortable with the questions you are being asked over the phone, do not respond and hang up. No reputable organization will take issue with that. Then call the organization back on a phone number you have looked up yourself.

If you think you have provided personal or financial information to a criminal, contact the organization involved right away. If you have provided some of your banking or credit card information, contact your bank or financial institution immediately and they will advise you on what you should do. You can also call your local police department.