March is fraud awareness month, so lets start with something that has come up recently. Online GIC scams.
A fraudster sets up a fake website, posting as a legitimate bank, in this case, they presented themselves as PC Financial. They paid Google to have their page show up at the top for certain search terms, such as “best GIC rates.”
On their page, they offer GIC rates too good to be true, and investors, looking for better returns in this difficult economy, fall for it. Thinking they are sending money to a secure financial institution, they wire hundreds of thousands of dollars to a bank account, with their savings never to be seen again.
Unfortunately, this approach worked. Many Canadians have fallen as victims to this scam already. As fraudsters become more sophisticated, leveraging online tools, including AI, to develop better looking websites and more convincing communication. This recent news report details the sad story of several Canadians falling for this scam.
Simple practices could avoid issues like this. If you see a rate, contact the financial institution directly. Make sure you are on their website. Look at where the funds go. If you are looking to invest with PC Financial, and they ask you to wire funds to BMO, think, does this make sense?
And the best rule as always, if it is too good to be true, it probably is. If you find a large institution is offering returns far above everyone else, approach it with skeptically, and with caution.
