Are you at risk of a cyber attack?

Transcript

Tony Maiorino:

The Canadian Anti-Fraud Centre reported a record-breaking $638 million lost to fraud in 2024, and cyber-related fraud in Canada is rising every year.

There were around 46,000 reported incidents in 2024 alone. Canadians are facing daily fraudulent threats on multiple fronts, from emails to text messages to phone calls and credit cards. And as our world becomes more reliant on digital tools, cyber criminals are lying in wait. So how can Canadians protect themselves?

Hi, I’m Tony Maiorino and welcome to Matters Beyond Wealth. With me today is Christian Rivest, Vice President of Customer Success at Sigma Loyalty Group, a technology leader in consumer identity protection. Thanks for joining me to talk today about all things cybersecurity and fraud and why this matters beyond wealth.

Christian Rivest:

Thanks so much for having me on, Tony.

Tony Maiorino:

So Christian, can you tell us about some of the latest scams and trends that you’re seeing in the cyber world?

Christian Rivest:

So scams today aren’t the poorly worded emails that we saw 10 to 15 years ago. Fraudsters are organized. They’re increasingly using technology at their disposal, such as AI, to make their scams look more authentic, more believable. Examples we’re seeing are things like delivery notifications or texts that are mimicking bank alerts, investment scams that target Canadians on social media and impersonation scams. So, people pretending to be trusted authorities or even loved ones. I think the one thing that stands out to me through everything that I’ve seen in the space is the new use of deep fake audio and video. So scammers now have the tools and technology to replicate someone’s voice to make a phone call sound real.

It’s really the speed and the sophistication of these scams that’s making it harder and harder for Canadians to know what’s legitimate, which is why prevention and education are so critical right now.

Tony Maiorino:

Wow, you’re painting a picture that actually made the hair on the back of my neck stand up a little bit. So for Canadians, what are the most common ways that they’re targeted in identity theft and cyber fraud today?

Christian Rivest:

It’s really through the channels they’re using every day—think emails, texts. These channels, they’re fast, they’re easy, they’re inexpensive for fraudsters. And what they’re taking advantage of are our instincts to react quickly. For example, a text that’s saying your package can’t be delivered until you click on a link. Now, we do a lot of different things online in terms of shopping and other parts of our lives and that effort to really be immediate with our actions is something that fraudsters are able to take advantage of. I think another thing outside of what’s visible to us is just what’s happening in the background, another major driver is large-scale data breaches. So companies are being hacked every day. Millions of names, emails, passwords, even financial details end up on sale on the dark web. What criminals are doing is they’re using this information to open fraudulent accounts, take out loans, even impersonate you with enough detail to fool institutions. So it’s no longer about falling for a scam. Sometimes our information is being compromised without us even realizing it. And that’s what makes things like ongoing monitoring so important.

Tony Maiorino:

Now, I’m sure, you know, everybody needs to be aware of this, but are there certain groups like older Canadians, newcomers, young adults that can be more vulnerable to these crimes? And maybe to double-click on it, why is that?

Christian Rivest:

Yeah, you said it best. We all need to be aware of this. It’s really not an issue that’s targeted to a specific segment. It’s really nationwide and global. But each group is vulnerable in their own way. Using the examples that you offered up, looking at older Canadians, they often have more savings and may not be as comfortable with digital technology. It makes them prime targets for things like a grandparent scam, which is something we spoke about in our monthly newsletter to our customers last month. It’s really where fraudsters pretend to be a loved one that’s in trouble. So they impersonate a grandson who’s been arrested for a speeding ticket or something along those lines. It’s really taking advantage of that vulnerability of that older population. And newcomers to Canada, for example, they’re still learning how institutions within Canada communicate. So scammers are able to exploit that uncertainty—pretending to be immigration officials or government agencies. And then younger Canadians, you’d think that they’re not susceptible because they’re too tech savvy to be tricked, but really, they are the ones that have reported the most loss from scams as of 2024. So when you think about younger Canadians, they’re chronically online – everything that they’re doing is happening online. And there’s a sense of confidence in terms of clicking on that link and falling for certain things like shopping scams or fake job postings that’s actually led to this demographic to be one of the main drivers of scam loss in Canada.

Tony Maiorino:
Yeah, there’s some chilling stats out there. So can you share any insights, obviously anonymous or stories that highlight kind of the personal toll that cyber fraud takes on individuals?

Christian Rivest:

So maybe start with an example of the grandparent scam because it is so topical now with, as I mentioned, the use of technology like deep fake audio that fraudsters are using. One story that really stuck out with me is a retiree who believed that they were helping their grandson in an emergency. She transferred thousands of dollars only to find out it was a scam. Now, the money mattered in that situation, but really what matters most was the trust was broken. She no longer felt safe answering her phone or trusting unexpected calls. So that shame can be worse than the financial loss in a lot of these instances and that’s really something that sticks out to me, it’s kind of how that emotional toll of these of these scams and things and the acts that these fraudsters are taking, the toll that it’s having on the psyche of Canadians. Another case involved a young professional whose identity was stolen and multiple credit accounts were opened in their names without them knowing. So even after closing the accounts, it took months of stress, calls, paperwork to restore their credit rating, and this is someone who’s looking to buy a home. It really highlights that fraud doesn’t just disrupt someone’s bank account, it really affects their emotional well-being and their confidence.

Tony Maiorino:

Yeah, I think when you talk about, you know, the confidence and the shame, I think that’s a big reason why we wanted to have you on our podcast today was really, there’s nothing to be ashamed about. This happens to everybody and I think the more we talk about it, you know, hopefully we’ll lessen some of that. I know you mentioned this information being available, the dark web is something that you’re reading about on, you know, news channels you’re hearing about it on news broadcasts. It sounds like it’s coming from like a Hollywood movie or something like that. So maybe for our listeners talk a little bit about what the dark web is and why should we be worried about it.

Christian Rivest:

You’re right, when you hear the term “dark web”, really does sound like science fiction, but I can promise you it’s very real.

Basically what the dark web is, it’s a hidden part of the internet. It’s not indexed by search engines and it requires special software to access. What this area of the internet that’s not seen and not accessible without these special software’s, what it’s become is a marketplace for stolen data. So, if your personal information is leaked in a data breach, so a company that you’ve shared information with has been part of a major data breach. There’s a good chance that your data is ending up on the dark web. Every piece of personal information that you have, so your SIN number, your passport number, all of these elements, they have financial value tied to them. So criminals are buying and selling this data and using it to commit fraud, not just immediately, but years down the line. So they can sit on this data that they’ve purchased about you, build a profile out on you and wait for five years before they do anything with it. So I think that’s why tools like dark web monitoring become so valuable because it’s not really about scaring people, it’s about giving them visibility to where their information is and allows them to act before anything happens in terms of loans being taken out in their name or other sorts of fraudulent activity.

Tony Maiorino:

So if someone’s life is hacked, if you’ve had the unfortunate situation where your information has been stolen, can you walk us through what it might look like to piece things back together and where can we go to get help?

Christian Rivest:

It can really feel like your life’s unraveling in this instance. So imagine logging onto your online banking and you see accounts that you didn’t open, or you’re getting calls from creditors about debts that you never took on, your credit score’s dropping, there’s bills piling up in your name and you feel powerless.

Most people don’t know where to start. So what we’ve offered in the market is a product called FirstReport. So FirstReport really pairs all of these elements that we’re talking about from the dark web monitoring aspect, scam prevention, credit bureau monitoring. So if we’re talking about data breaches in the market, we’re giving you visibility into whether your data has been exposed on the dark web, but also helping you monitor the credit bureaus where creditors go and actually open up these accounts where you can see whether these accounts are being opened up years down the line. We’re really offering those tools to help you monitor.

Most importantly, we talk about the shame and the not knowing what to do in these instances—professional restoration services are really the critical piece. If you’ve become a victim of identity theft, you can call into our service centre and you’re connected with specialists who have decades of experience in this space. And these specialists can help customers walk through step-by-step, the process of closing fraudulent accounts, contacting credit bureaus, and rebuilding their financial reputation. So what it’s really doing is turning a completely overwhelming situation into one where you have a guide and an advocate in your corner.

Tony Maiorino:

Yeah, I think that’s really important. You know, so, speaking a little bit about that, so you find out, you start remediation, but what long-term damage can a victim of fraud or identity theft or one of these types of activities, what long-term damage could they face?

Christian Rivest:

Yeah, that’s a really good point. So oftentimes the consequences of identity theft, they outlast the initial incident. So financially, your credit score can be damaged for years, which can affect ability to qualify for a mortgage, car loans, or even employment in industries that check credit history. And then emotionally, we talked about the stress that lingers too, right? So victims often describe feelings of being anxious every time they get a new email or a bank notification. Some stop using online banking altogether, which impacts how they live their day-to-day lives. And as I mentioned, because stolen data can circulate indefinitely, there’s always the fear that it could happen again. So you’re constantly living on edge with this feeling that you can become a victim again down the line. So it really is a long-term issue, it’s difficult to resolve as well. The more activity that a fraudster can take out in your name and more accounts that they’re able to open fraudulently against you increases the amount of resources and time that it takes to actually resolve the issue and get yourself back to a place where you were prior to the incidents occurring. So I think that’s again why ongoing monitoring and long-term support are so important. And really resolving one incident is only one part of the journey.

Tony Maiorino:

Yeah, for sure. And I know that there are things that we can do as individuals, like making sure we’re changing passwords and having a monitoring system in place. And with elderly people having passwords, if they get a phone call, I’m in trouble, I need help. OK, well, what’s our family password? So those are things we can do individually. But what do you believe is most urgently needed in Canada? You know, maybe from a legislation perspective or you know, those kinds of things to protect individuals from cyber fraud.

Christian Rivest:

Yeah, there’s definitely more that needs to be done. I mean, there definitely needs to be more education so Canadians know how to recognize scams and feel confident reporting them. And I know there has been more and more, as we see through our partnerships with Canadian Fis (financial institutions), more education around the scam space. So that’s an important first step.

Reframing the feeling of shame and making sure that Canadians are aware that this is something that’s happening and making the issue visible to them is really that first step.

From a legislation perspective, I mean, there should be tighter collaboration between the banks, the telecoms, government agencies to identify scams and shut them down faster. So especially when fraudsters are using Canadian phone numbers or pretending to be Canadian financial institutions. So recognizing these scams and having a way to shut them down faster is definitely important. And I think that proactive tools need to become mainstream. So I think things like scam detection, identity monitoring, credit bureau alerts—they shouldn’t be niche products. Identity theft and scams affect us all.

Tony Maiorino:
Yeah, I completely agree, I think those are some changes that are desperately needed. So as individuals right now, we talked about some of the things just a couple of seconds ago around passwords and updating stuff. But what other things can we do to better safeguard our personal information and our identities online?

Christian Rivest:

First step, always be skeptical. Be skeptical of unsolicited calls, texts, or emails—if communication you’re receiving is creating a sense of urgency or pressure, pause before reacting. That’s my best advice. You always have to take that added step to make sure that you’re not acting in a sense of urgency. As you mentioned, some other tools are using a strong, unique passwords and even considering a password manager, using two-factor authentication on any place where you’re online is a really important step and it’s a very easy first step to take. If something feels off, trust your instincts, that’s the advice I always give when I speak on this. One tool we’ve actually built is AI powered scam detection service. What you’re able to do is you’re able to upload a suspicious text or email and get an instant score on its likelihood of being a scam. The purpose of that is kind of continuing that conversation of giving customers an extra moment to get that confidence before clicking a link or sharing information.

Tony Maiorino:
Yeah, I think that’s, you know, absolutely great advice and really key. You know, it’s interesting, I was at an event where a cyber expert was asking what was the most important online password that Canadians have. And I think everybody in the audience said their banking credentials. And he responded back, well, it’s probably your email credentials because that’s where ‘I forgot my password’ goes. Would you agree with that?

Christian Rivest:

100 percent—I couldn’t have said it better myself. If someone gets access to your email and your password, as you mentioned, every forgot password email is going back into that inbox so someone can access your inbox that you’re using that’s tied to a lot of your accounts. So, your online banking, other important institutions. Now they have access to these accounts online. So it really is a place that people don’t really think much about, right? They’re always worried about specific information and specific places like your online banking, but your email is a gold mine for fraudsters.

Tony Maiorino:

Yeah, amazing. Well, listen, Christian, thank you so much for joining me today and delving into this world of cybersecurity and why this matters beyond wealth.

Christian Rivest:

Thank you.

Tony Maiorino:

You can find out more about Christian and the Sigma Loyalty Group on their website at sigmaloyaltygroup.com . If you enjoyed this episode and you’d like to support the podcast, please share it with others, post about it on social media or leave a rating and review. Until next time, I’m Tony Maiorino. Thank you for joining us.

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