Fraud prevention is important for Canadian business owners and real estate brokers. Being skeptical, understanding scammers’ tactics, and taking the right precautions will help protect your business. Here are three ways to stay ahead of fraud risks.
1. Recognize Common Scams
Knowing the most common scams helps you identify and avoid them. Here are two scams that are frequently targeted at businesses:
Example 1: Directory Scams
In a directory scam, a fake company contacts you to update your business information for a directory listing. They claim you’ve previously purchased an ad, then send an invoice for a listing you didn’t agree to… If you challenge the charge, they’ll claim to have a recording of your consent, but it’s usually an edited version to threaten you.
Verify any directory offers by calling your regular supplier and carefully reviewing contracts or invoices. Report threats to the police or the Canadian Anti-Fraud Centre.
Example 2: Phishing Scams
Phishing scams try to steal your sensitive information, such as credit card numbers or passwords. They do this by pretending to be trusted organizations and communicating with you by email, phone, text, or social media.
Be cautious of unsolicited messages. Double-check email addresses, avoid suspicious links, and don’t reply or open attachments from untrusted sources.
2. Safeguard Transactions and Client Data
Protecting sensitive information ensures trust and smooth operations. Here’s how:
Verify Client Identities
For real estate brokers and sales reps, verifying client identities is a simple step to prevent fraud. You can protect your business against identity theft by requesting government-issued IDs and confirming details. Learn more from FINTRAC.
Report Suspicious Activities
Report unusual transactions to FINTRAC to help prevent fraud and money laundering. Staying alert helps protect your business and supports industry efforts to combat financial crime.
3. Educate Your Team and Clients
The more informed your team and clients are, the less likely they are to fall victim. Here’s how to stay educated:
Train Employees Regularly
Make fraud prevention a regular part of your team’s training. Keep them updated on the latest scams and best practices, and help them spot and report suspicious activity.
Communicate with Clients
Share fraud prevention tips with clients, informing them of potential scams and ways to protect their information. An open dialogue builds trust and shows your commitment to safeguarding their interests.
Trusted Resources for Fraud Prevention
Here are three resources to help you stay educated on fraud prevention:
- Competition Bureau Canada’s Frauds and Scams – Learn how to protect your business and test your knowledge.
- Canadian Anti-Fraud Centre (CAFC) – Offers information on scams and how to report them.
- Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) – Provides guidance on identifying suspicious activities and complying with anti-money laundering regulations.
For Ontario real estate agents and brokers, understanding TRESA (Trust in Real Estate Services Act) helps you build trust with clients and make transactions smoother. To learn more, read What Does TRESA Mean for You as a Broker or Agent?
Conclusion
By staying aware and vigilant, you can reduce the risk of fraud. If you found this article helpful, subscribe to our newsletter for more.
