How financial advisors can prevent fraud when data is currency

Scams today often bypass technical barriers and exploit trust instead. A message might seem familiar, come with an urgent instruction, or warn of dire consequences for doing nothing. These tactics are meant to catch people off guard, and they often work.

October marks Cybersecurity Awareness Month in Canada, a reminder that the digital side of wealth management deserves as much attention as the financial side. For advisors, this means treating client information as carefully as client assets. Both are valuable, and both are vulnerable.

Fraud has evolved to be personal

Modern criminals watch for patterns and strike when people are distracted or under pressure. A note that appears to come from a known contact, a sudden demand for action, or a connection formed online can all be used to manipulate someone into sending money or revealing private details.

A prime example is the rise of romance scams. In Canada, reported losses from these scams reached $58 million in 2024. They often start with a virtual introduction, followed by emotional pressure and requests for money, typically to help the fraudster solve a crisis or capitalize on an investment opportunity. Victims believe they’re helping someone they care about, unaware they’ve been targeted until the funds are gone.

These ploys abuse trust, not just technology, which makes them harder to spot. They also feel personal, and that’s why they succeed.

Your role as an advisor in fraud prevention

Clients share sensitive information with you: account numbers, financial history, future plans, and more. That alone makes them appealing to scammers. When something goes wrong, you’re often their first call.

While a scam may not start in your office, your preparation and response can significantly influence the client’s experience. Rigorous security habits lower risk and show you take their privacy seriously, prompting trust that their financial lives are protected on every front.

As an advisor, being proactive about cybersecurity is one of the best ways to ensure client information stays where it belongs.

Habits that reduce risk and protect client data

Effective safeguards are repeatable and easy to apply. They don’t require new software or complicated processes, just awareness and follow-through. Be sure to:

• Confirm instructions with clients by phone before acting on transfer or withdrawal requests.
• Encourage clients to enable multifactor authentication across their accounts.
• Store sensitive information within approved systems.
• Treat urgency, secrecy, and unexpected requests from clients as signals to pause and verify.

Talking about fraud with clients

Many clients assume scams only happen to people who aren’t cautious. Others may think they’re not wealthy enough to be a target. Both assumptions are wrong.

Including fraud in regular planning helps normalize the topic and creates room for clients to speak up if they’re unsure about a message or something they’ve been asked to do.

These conversations don’t need to be technical. They can start with simple questions or suggestions, such as:

• Have you seen any unusual messages lately?
• Do you use multifactor authentication on your accounts?
• Let’s take a minute to talk about how we keep your information safe.

Check-ins like these can help prevent mistakes and reinforce your role in protecting the client’s broader financial well-being.

How Manulife Wealth supports you

Client data is currency. We secure it through encrypted systems and platforms, fraud detection tools, and ongoing advisor education. The resources can help you anticipate risks and provide the means for you to act decisively when issues surface.

Technology can block some threats. Your judgment, awareness, questions, and relationships with your clients are key to stopping the rest.