Top concerns among Canadians regarding financial fraud and effective strategies to combat them
Experts in banking suggest that keeping voicemails short, enabling multi-factor authentication when possible, and setting up account alerts are key strategies to prevent financial fraud, particularly those involving artificial intelligence (AI).
In a recent survey conducted by the Royal Bank of Canada (RBC), Canadians shared their concerns about financial fraud. AI emerged as a top concern, with nearly 90 percent of respondents believing that AI could increase vulnerability to fraud. RBC also noted that over 80 percent felt that AI could make it harder to detect phone fraud, particularly through voice cloning and impersonation scams. This information was shared in a Nov. 4 press release.
RBC recommended that Canadians protect themselves by activating alerts and multi-step verifications for their personal accounts, where available. They also advised against sharing unnecessary personal information and keeping voicemails brief and generic to prevent scammers from gathering sensitive details.
“If you receive a sudden request from a seemingly legitimate source to transfer money or share confidential information, it’s important to stay calm and avoid acting impulsively,” RBC advised. “If an offer seems too good to be true, it’s likely a scam.”
Additional recommendations include creating strong passwords with a minimum of 16 characters, refraining from using public Wi-Fi for online banking, and disregarding or deleting unsolicited emails and texts containing suspicious links or requesting personal information.
RBC highlighted that some Canadians may be overly confident in their ability to detect AI-related fraud, with almost 65 percent expressing confidence in recognizing scams enabled by AI technology. This observation was made by RBC earlier this year.
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An RBC spokesperson mentioned, “With the increase in voice cloning and deepfakes, scammers now have more sophisticated tools to carry out phone and online scams. While awareness of these scams is high, it’s crucial to take steps to protect oneself from fraudulent activities.”
The recent RBC poll also highlighted Canadians’ primary financial concerns, including worries about the cost of living, expenses versus savings, cash flow, and long-term financial stability.
