The Internet has made it easier than ever to bank, shop, communicate with others and find information about almost anything at any time. But as Internet use among Canadians continues to rise, more criminals are using the information that they find online to commit identity theft and financial fraud.

Educating yourself about the latest online scams, the types of information criminals are after, and the current security measures available can go a long way to ensure you don’t become a victim of online crime.

Social Networking Sites

The recent popularity of social networking sites has provided fraudsters with a new target for their scams. A recent survey by Ipsos Reid found that by the end of 2007 nearly a third of all Canadians had created an online profile using a social networking site such as Facebook or MySpace. The survey also found that Canadian users spend an average of 5.4 hours a week visiting such sites.

While such sites are a great way to keep in touch with friends and family and reconnect with old friends they can provide fraudsters with easy access to confidential, personal information.

Social networking sites promote open communication and encourage the exchange of information. Such sites can give people a false sense of security, causing them to let their guard down and share personal information that they normally would keep private.

The following tips can help you protect yourself when using social networking sites.

• Limit the amount of information you share publicly. Never post your phone number, address or birth date online as it could be used to commit identity fraud.
• When creating a profile on a social networking site, only accept friend requests from individuals you know.
• Check the privacy and security settings of your social networking site. Don’t rely on the site’s default privacy settings as it may give strangers complete access to your profile page.

File Sharing Networks

File sharing networks, often called “peer-to-peer” or “P2P” sites, are also popular with online criminals because they allow users to anonymously upload and download media files across global networks. Beyond the legal issues relating to copyright infringements, downloading files on peer-to-peer sites is extremely risky because criminals can distribute objectionable or illegal files and viruses that are disguised to look like innocent downloads of popular songs or movies.

Using file sharing websites is a high-risk activity but, if you do choose to do this, the following tips can help protect you and your computer:

• Regularly update your antivirus software to ensure it is up to date with the most recent version available.
• Set your antivirus software to run an automated weekly scan to identify any malicious files that may have been inadvertently installed on your computer.
• If using a file sharing website, be sure to change the program’s default settings. Always manually determine which folders and subfolders you will share with your network.

Other common tactics used by fraudsters include:

• Trying to trick you into downloading software that can monitor what you do and where you go online. This software can also steal your log-in information and passwords.
• Sending e-mails or leaving phone messages that seem legitimate but, if you respond, take you to a phony website or message centre to try to get you to reveal your personal information.
• Reaching a large number of people by directing scams at users of popular websites. The scams are often designed to fit in with the theme of the website: like targeting popular social networking sites where friends and family share information.

During Cyber Security Awareness Month, to test your knowledge of online threats and for more tips on how to protect yourself and your computer please visit the Stay Safe Online section of the Canadian Bankers Association website.

Do you have an idea for a future fraud prevention tip? Send us an e-mail with your idea to FraudPreventionTips@cba.ca.

Canada's banks take the issue of privacy, security and fraud prevention very seriously. They work hard to prevent their operations and customers from being used for any kind of financial crime and to raise awareness about the ways that customers can protect themselves.

As a consumer, you also have an important role to play in preventing fraud. October is Cyber Security Awareness Month, and Canada’s banks have teamed up to provide information on some of the newest ways criminals are using the Internet to commit financial fraud, and how you can protect yourself.