Protect yourself from AI scams, cybercrime, and identity theft

Artificial intelligence (AI) can make everyday digital tools more helpful, but it can also help fraudsters create convincing emails, text messages, websites, images, audio, and videos. A message may appear to come from a trusted company, while a phone call could imitate the voice of someone you know.

These scams can be difficult to recognize, which is why awareness, good digital habits, and the right insurance protection are increasingly important. Identity theft coverage and personal cyber protection may be available through a home insurance policy, helping eligible policyholders manage certain recovery costs after a covered incident. Coverage varies by insurer and policy.

How AI is making scams more convincing

Fraudsters can use AI to produce polished communications without the spelling mistakes or awkward language that once made some scams easier to spot. They may also use information shared online to personalize a message with details about a person’s workplace, family, interests, or recent activities. 

Common AI-enabled scams may include:

• Deepfake calls and videos. AI-generated audio or video may imitate a relative, friend, company representative, or another trusted person.¹
• Personalized phishing. Fraudsters may use information from social media to make an email or text message appear relevant and legitimate.¹
• Fake websites and advertisements. AI can help scammers produce realistic storefronts, product descriptions, company logos, and customer reviews.
• Account impersonation. A compromised or copied social media account may be used to contact friends and family with urgent requests for money or information.²
• False investment and purchase opportunities. Fraudsters may use fabricated testimonials, images, or videos to promote offers that do not exist.

A familiar voice, realistic image, or well-written message is not proof that a request is legitimate.

Warning signs of a cyber scam

Scams can arrive by email, text message, phone call, social media, online advertisement, or messaging app. Fraudsters often try to create fear, excitement, or urgency so that the recipient acts before confirming the request. 

Be cautious if someone:

• Asks for money, gift cards, cryptocurrency, account access, or a verification code.
• Pressures you to act immediately or keep the request secret.
• Claims that an account has been compromised and directs you to an unfamiliar link.
• Requests personal or banking information unexpectedly.
• Asks you to move a conversation to another messaging platform.
• Offers a price, prize, investment, or refund that seems unusually generous.
• Sends a password-reset notice or login alert you did not request.
• Contacts you from a slightly altered email address, web address, or social media account.

Even if the request appears to come from someone you know, pause and verify it independently.

How to protect yourself from AI scams and identity theft

A few consistent cybersecurity habits can make it harder for fraudsters to access your accounts, money, and personal information.

• Verify unexpected requests. Contact the person or organization using a phone number, application, or website you already trust. Do not rely on the contact details in the suspicious message.
• Create strong, unique passwords. Avoid reusing the same password for email, banking, social media, and shopping accounts. A password manager can help securely create and store unique passwords.³
• Turn on multi-factor authentication. This adds another verification step if someone obtains your password.
• Protect verification codes. Never provide a one-time security code to someone who contacts you unexpectedly.
• Limit what you share publicly. Birthdays, travel plans, workplaces, relatives’ names, and other personal details can help fraudsters create a convincing story.
• Check links and website addresses. Look for misspellings, extra characters, unusual domains, or shortened links before opening a page or entering information.
• Keep devices updated. Install operating-system, application, browser, and security updates when they become available.
• Monitor financial and online accounts. Review transactions, credit inquiries, login alerts, and account-recovery details regularly.
• Secure your home network. Change default router credentials, use a strong Wi-Fi password, and avoid accessing sensitive accounts through unsecured public Wi-Fi.
• Talk with family members. Consider agreeing on a private family question or safe word that can be used to verify an urgent call, text message, or video request.

What to do if you think you have been targeted

Act quickly if you clicked a suspicious link, shared personal information, sent money, or noticed unusual activity.

1. Contact the affected provider. Call your financial institution, credit card company, email provider, or other service using a trusted number.
2. Secure your accounts. Change the affected password and any other account that uses the same password. Turn on multi-factor authentication and review recovery email addresses and phone numbers.
3. Record what happened. Save emails, texts, screenshots, receipts, transaction details, website addresses, and the date and time of the incident.
4. Check your devices. Update your security software and follow trusted technical guidance if you downloaded a file or application.
5. Protect your credit. Contact Equifax Canada and TransUnion Canada if your identity or credit information may be affected.
6. Report the incident. Report identity fraud or cybercrime to local police and the Canadian Anti-Fraud Centre. Suspected fraud can be reported even when no money was lost.
7. Contact your insurance provider. If you have identity theft or personal cyber protection, notify your insurer or broker promptly and ask what documents and next steps may be required.

The Canadian Anti-Fraud Centre accepts reports through its online reporting system and by telephone. If you’ve been affected, preserve any documents and communications related to the incident. You should also contact the appropriate authorities and credit bureaus.

How insurance may help after identity theft or a cyber incident

Good digital habits can reduce risk, but they cannot prevent every incident. Depending on the insurer, policy, selected coverage, and circumstances, identity theft or personal cyber protection may help with eligible expenses or support services such as:

• Assistance restoring an identity and credit records
• Professional, technical, or legal support
• Costs for replacement documents, postage, correspondence, or notarization
• Lost wages associated with resolving an identity theft incident
• Response support following eligible online fraud or a cyberattack
• Certain data-restoration expenses
• Certain cyber extortion-related expenses

Some insurers may also provide access to specialists who can help the policyholder understand what happened and navigate the recovery process. 

Insurance does not prevent a scam from happening, and not every financial loss, payment, or cyber incident will be covered. Limits, deductibles, definitions, conditions, and exclusions may apply. A licensed insurance broker can explain:

• Whether identity theft or personal cyber protection is already included
• Whether optional protection is available
• Which members of the household may be covered
• Which incidents, expenses, and services are eligible
• What limits, deductibles, and exclusions apply
• Who to contact if an incident occurs

Reviewing these details before an incident can help a household understand what support may be available when it is needed. 

Review your protection with Orbit Insurance Services

Cyber scams continue to evolve, but the first line of defence remains the same: pause, verify the request independently, protect your personal information, and act quickly when something does not seem right.

Current Orbit policyholders can contact an Orbit insurance broker to review their home insurance policy and discuss available identity theft coverage and cyber protection. Canadians shopping for home insurance can also contact Orbit Insurance Services to request a quote and explore coverage tailored to their needs.

Contact Us

1. Canadian Anti-Fraud Centre
2. Office of the Privacy Commissioner of Canada – Identity theft
3. Canadian Centre for Cyber Security — Password managers
4. Canadian Anti-Fraud Centre – Reporting fraud