As a financial advisor, you could be the first line of defence regarding credit card fraud, says Greg Pollock, president and CEO of Advocis.
“Financial advisors are in a good position to talk about the issue of credit card fraud with their clients,” Pollock says. “It is part of that ongoing personal and financial conversation that helps build a trusting relationship.”
The following simple steps can help you keep your clients’ finances secure:
> Promote good habits
At the end of your next client meeting, take a couple of extra minutes to make sure your clients are taking the proper preventative steps to minimize the risk of fraud.
Advise them to double-check their monthly credit card statements for illegitimate charges and to shred all documents bearing credit card information before disposing of them.
> Provide travel advice
If your clients are travelling outside the country, Pollock says, advise them of the steps they can take to ensure their credit is protected.
Your clients should notify their credit-card provider that they will be travelling in foreign lands, so credit card transactions should not be red-flagged. This step can help clients avoid having their credit suspended.
Advise clients that they may not need to take all their credit cards with them when they travel. “Tell them to just take the cards they need.” Pollock says. That can minimize risk in case a client should lose his or her wallet.
> Promote online safety
Ann Cavoukian, Ontario’s privacy commissioner, recommends you tell your clients to use a specific credit card devoted exclusively to online purchases.
In the event that that card is compromised, the source of the problem will be easier to find. This step will also enable your client to use his or her other card while the problem is being resolved.
Experts also recommend using a card with a relatively low credit limit for online purchases, which limits the extent of potential fraud.
> Make sure they’re forewarned
Ensure your clients are skeptical about offers of banking products on the telephone and online.
The Royal Canadian Mounted Police have noted that criminals are targeting three groups in particular with regard to credit fraud: students, new Canadians and people who have experienced previous credit problems.
In one scenario, the victim is enticed by promises of a credit card offering a low interest rate — for a fee. Once the victim decides to pay, the card never arrives, and the money is lost.
Also, arm your clients against “phishing” scams by emphasizing that they should never provide their banking information in response to emails that appear to come from a bank.
Making sure your clients are protected, Pollock says, is well worth the extra few minutes of your time.