FRED:  Welcome to the Scotiabank Podcast. I’m Fred Ketchen, Director of Stock Trading for ScotiaMcLeod. These regular podcasts call on some of Scotiabank’s most knowledgeable experts to help you make the most of what you have. Here we’ll discuss strategies designed to put you in the financial driver’s seat.

In this podcast I’m joined by Steve Hawkins, Scotiabank’s Chief Information Security Officer. Steve is going to talk with us about the importance of protecting yourself from online fraud, how to recognize it, what to do if you receive any suspicious e-mails or other online activity. So, Steve what exactly is online fraud?

STEVE:  Well, Fred online fraud is the act of obtaining your user credentials to sign on to internet banking to steal your money or obtaining your credit card information so that could be used to make purchases that you end up paying for. There are different techniques used to gather that information some of which are known as phishing or spoofing or via viruses that attempt to log key strokes on computers. They send phony e-mails that ask you to provide sensitive, personal, financial or account information. You may be asked to supply the information in a return e-mail in a separate form attached to the e-mail or by visiting a phony website which is impersonating a real banking site using a link contained in the e-mail message. Information is then used to access your accounts directly including withdrawing money or opening new accounts in your name using your information. According to Industry Canada, 3 in 10 Canadians who use the internet at home report having received phishing e-mails. According to Symantec, almost a quarter of Canadian city dwellers have fallen victim or know of someone who has fallen victim to online fraud or identify theft.

FRED:  So then, how do I recognize e-mail fraud?

STEVE:  Well, fraudsters use sophisticated techniques to dupe customers and often try to mimic the bank’s existing communications processes. They’re not easy to recognize but there are some signs that can indicate the e-mail may be suspect. Be cautious of unsolicited e-mails with urgent appeals for security or personal information. The tone of the e-mail can suggest a sense of urgency or somewhat threatening; for example, if you don’t provide this information, we’ll close your account. The e-mail may contain spelling mistakes, although this isn’t as prevalent as it used to be and remember that Scotiabank, like many of the large banks, will never ask you to provide sensitive, personal or financial information in response to an e-mail.

FRED:  Good advice, Steve. So that means, what should customers do if they receive a suspicious e-mail?

STEVE:  If you have a suspicious e-mail, do not click on the links inside the e-mail. Customers can confirm the validity of the e-mail or other requests from their bank by contacting their branch or calling their bank’s customer service number. Also, banks typically have an e-mail address set-up specifically for suspicious e-mails. When in doubt, air on the side of caution. If something doesn’t feel right, don’t do anything with it before checking it out.

FRED:  What sort of security precautions should someone expect in their on-line banking operations?

STEVE:  First, let me start by saying that online security is a shared responsibility between customers and their financial institutions. Banks take the security of customer information extremely seriously. Canadian internet banking systems are secure and the banks use sophisticated technology and layers of security procedures and processes to help protect the system from intrusion and accounts from unauthorized transactions. Security features and enhancements like session time outs, additional pass codes for certain transactions, and recording the date and time of the last log-in are used to assist customers in keeping their banking secure. Also, on-going monitoring systems are in place to monitor the security of on-line banking transactions seven days a week, 24 hours a day. And also, for example, Scotiabank customers have the ability to do secure messaging within the online banking communications centre of our site. Ensuring communications with us are always private.

FRED:  That prompts the question then, how can customers protect themselves online?

STEVE:  Fred, it all starts with the password. So, it’s important to use a hard-to-guess password. Combinations of numbers and letters are best. Avoid easy-to-guess personal information like birthdates and names. Keep your passwords and codes secret. Don’t share them with anyone, not even your family members. Avoid doing financial transactions on public computers, in cyber-cafés, libraries, and other places. If you have an express sign-on feature that saves your bank card number, only use those features on personal computers that you control. When you’re banking from your home computer, you need to make sure it’s secure by enabling automatic updates for the operating system and install and run anti-virus personal firewall software and keep it up-to-date as well. Sign on to your bank account periodically and view your account details to see if there are any transactions that you don’t recognize. If you have questions about a transaction, let the bank know immediately. Don’t respond to pop-ups, e-mails or other internet requests that ask you to reveal personal information about yourself or your bank accounts. Stay current. Most bank web sites have detailed information on what responsibilities of the banks are and the responsibilities of the individual are when it comes to safe on-line banking. Consumers should make sure they’re familiar with this information and check it periodically for updates. Most financial institutions have detailed information on the public websites on how people can keep their information safe.

FRED:  Well, given all of that kind of information, Steve, what should people do if they think they’ve been a victim of online fraud?

STEVE:  Customers should call their bank immediately to report online fraud. The phone numbers are available on the bank’s websites.

FRED:  Thanks, Steve for sharing this very important information with us. I’m sure that our listeners have found this helpful in protecting themselves from falling victim to online fraud.

Thank you for joining us. I’m Fred Ketchen. For more information on our Wealth Management Services, please visit your local Scotiabank branch. We’ll help you make the most of what you have.