Fraud Prevention Month: Recognize, reject and report fraud

Fraudsters are getting smarter every day. That is why understanding how to safeguard your data and respond to suspicious activity is more important than ever. Knowledge and awareness are power in the fight against fraud, and this article serves as your guide to recognizing, rejecting and reporting fraud.

Common scams reported in Canada

Scammers often try to create a sense of urgency, pressuring you to act quickly and share your information. They usually target sensitive details like your Social Insurance Number (SIN), credit card or bank account numbers. Some common schemes include:

• Threatening calls: Fraudsters may demand payment for fake debts or use intimidating tactics to scare you into providing your SIN. 
• Phishing scams: These scams lead you to fake websites that ask for your personal or government credentials.

In this article, we will explore trusted Government of Canada resources to help you stay informed and protected—not just during Fraud Prevention Month, but all year long.

 ⚡ Lightning fact

In 2024, the Canadian Anti-Fraud Centre processed over 49,000 fraud reports. More than 34,600 people fell victim to scams, leading to a staggering $638 million in losses across the country.

 Spotting scams – what you need to know

Service Canada will never ask for immediate payment through e-transfers, cryptocurrency, prepaid credit cards, or gift cards. Stay cautious of unexpected messages or calls claiming to be from Service Canada or 1 800 O-Canada.

Watch out for:

• requests for personal information like your SIN, credit card or bank account details via email, text, or calls from unknown numbers; and
• messages asking you to click on links to deposit benefits or pay taxes.

Service Canada and 1 800 O-Canada only contact you if you’ve requested information or signed up for notifications. They do not make unsolicited calls or send unexpected messages.

 Why protecting your SIN matters

Your SIN is confidential and required for:

• working in Canada;
• accessing government programs and benefits like Employment Insurance or the Canadian Pension Plan; and
• filing your income tax return.

If someone else gets hold of your SIN, they can commit identity theft, access your finances or even obtain employment in your name. That’s why you should only share your SIN when necessary.

 How can identity fraud happen?

• Identity theft: Scammers use your SIN to impersonate you and access sensitive services.
• Unauthorized employment: Someone could use your SIN to get a job, leaving you to deal with potential tax or legal issues.
• Credit fraud: Criminals might open credit accounts or take out loans in your name, damaging your financial reputation.

💡 Quick tip: You are required to provide your SIN to your employer within three days of starting a new job. However, if someone claiming to offer a “job opportunity” urgently demands your SIN and other sensitive information before you can begin working, it’s likely a scam. Stay vigilant!

For a deeper dive, you can read through the Social Insurance Number (SIN) Code of Practice.

 Preventing fraud

Here are some key steps you can take:

1. Limit sharing your SIN: Only share your SIN when legally required, such as for employers, financial institutions or the Canada Revenue Agency. Avoid giving your SIN to landlords while you’re still negotiating your lease and avoid giving it to stores or volunteer organizations.
2. Store your SIN securely: Do not carry your SIN in your wallet or purse. Keep it in a safe place. Securely store documents containing your SIN (such as tax forms) and shred them when no longer needed.
3. Be cautious online and on the phone: Never share your SIN or personal information by email, text or phone unless you initiated the contact and trust the recipient. Watch out for phishing scams where fraudsters pretend to be government officials or financial institutions.
4. Monitor your bank accounts and credit report: Regularly review bank statements, credit card activity and your credit report for unusual transactions. You can request a free credit report from agencies like Equifax and TransUnion.
5. Act quickly if you notice suspicious activity: Contact Service Canada immediately if you think your SIN has been misused. Report unusual transactions or communications to the appropriate authorities.

What to do if your SIN is compromised

If you believe your SIN has been stolen or misused, take these steps:

1. Contact Service Canada: Visit a Service Canada Centre or call to report the incident. We can issue a new SIN if there is proof that someone has used it fraudulently, and we can guide you on next steps.
2. Report to law enforcement: File a police report to document the fraud.
3. Monitor your credit report: Place a fraud alert on your credit report to prevent further unauthorized activities.
4. Notify your financial institutions: Inform your bank to secure your accounts and watch for suspicious transactions.
5. Continue staying alert: Be vigilant for ongoing signs of fraud, like bills or notices for accounts you didn’t open.

Final thoughts

Protecting your SIN is essential. By following these tips and staying informed, you can reduce the risk of fraud and safeguard your financial well-being. Remember, vigilance and quick action are your best tools against identity theft. Knowledge and awareness are power!

For more information, check out the Protecting your SIN page on Canada.ca.