Your 2024 Guide to Frauds and Scams
In the past, when we traversed the money trails, our senses were better able to jump at a sign of potential danger lurking in the tree line. Identifying frauds and scams used to feel like this, and we were able to pick out those “red flags.” Now, with emerging technologies, scammers are only becoming smarter, and these “red flags” aren’t really there any more.
This March marks the 20th anniversary of Fraud Prevention Month, led by the Financial Consumer Agency of Canada (FCAC). The theme this year is "recognize, reject, and report." Fraud tactics have evolved from traditional methods like telemarketing and mail scams to sophisticated approaches using social media, Artificial Intelligence, and data scraping. Here’s how you can protect your information and money by recognizing, rejecting and reporting frauds and scams.
Recognize
Frauds and Scams from the Financial Consumer Agency of Canada
For Fraud Prevention Month, the Financial Consumer Agency of Canada (FCAC) highlights many of the scams from their collaborators like, Canadian Bankers Association, Ontario Securities Commission, Canadian Association of Insolvency and Restructuring Professionals, the Office of Superintendent of Bankruptcy, and Immigration, Refugees and Citizenship Canada. These groups often work closely with fraud and scam cases, and below is our summary of their highlights:
AI Voice and Face Cloning Scams: Scammers use AI to create realistic voice or video impersonations, tricking individuals into believing they're communicating with someone they know, leading to financial fraud or misinformation.
Debt Relief Scams: Unlicensed debt advisors promise unrealistic debt elimination solutions, charging upfront fees for services they cannot legally provide, exploiting individuals facing financial difficulties.
Newcomer Scams: Scammers pose as government officials or offer fake investment opportunities, preying on newcomers' unfamiliarity with local business practices, demanding fees or personal information under false pretenses.
Fake Emails: Scammers send deceptive emails urging recipients to invest money or disclose personal information, often leading to financial losses or identity theft. Delete suspicious emails and avoid clicking on any links or providing personal information to unknown senders to protect against phishing attempts and malware.
Fake Computer Virus: Scammers contact individuals claiming their computer is infected with a virus and offer to fix it remotely, aiming to obtain sensitive information or install malicious software. Never grant access to your computer to unsolicited callers and seek professional assistance from reputable sources for virus removal or antivirus software installation.
Fake Prizes: Individuals receive unsolicited phone calls or text messages falsely claiming they've won a prize, prompting them to provide personal information or engage in further communication. Delete suspicious messages and refrain from responding or providing personal details, as legitimate prize notifications typically do not request personal information or involve unsolicited contacts.
Top Three Common Scams in Canada from the Better Business Bureau
As of December 31, 2023, the Government of Canada has reported 62,365 accounts of fraud, 41,111 victims of fraud, and $544M lost to fraud. The Canadian Better Business Bureau (BBB) releases a report every year that highlights the year’s scam statistics. If you want to read the full report, you can find it here. If not, here's our summary of the key highlights and insights from the 2023 BBB Scam Tracker Canada Risk Report:
Scam Susceptibility and Losses: In 2023, 61.1 per cent of Canadians reported susceptibility to scams, marking a significant 30.3 per cent increase from the previous year. The median dollar loss remained consistent at $300, indicating that while more individuals fell victim to scams, the financial impact remained unchanged.
Top Scams: Investment and cryptocurrency scams emerged as the most prevalent, with a staggering 82.6 per cent of victims reporting monetary losses, highlighting the allure and subsequent risks associated with these schemes. Employment scams ranked second, followed closely by home improvement scams, emphasizing the importance of due diligence when exploring job opportunities or undertaking home renovations.
Demographic Trends: More females (59.8 per cent) reported scams compared to males (38.8 per cent) or non-binary individuals (1.4 per cent), with susceptibility rising across all gender groups. Individuals aged 18-24 reported the highest median dollar loss ($374), underlining the vulnerability of younger demographics to fraudulent schemes.
Lastly, The Royal Canadian Mounted Police will often make a news release for new scam threats, so give them a follow on social media, or check in with their website periodically so you can stay informed.
Reject
Preventive Measures for the 2023 Top Scams in Canada
Employment scams can be avoided by conducting thorough research on job offers, guarding personal information, and remaining vigilant against overpayment schemes.
Advance fee loan scams can be identified by recognizing red flags such as guaranteed loans or upfront fees, prompting individuals to exercise caution when dealing with lenders.
Home improvement scams can be mitigated by rejecting high-pressure sales tactics, verifying the legitimacy of businesses, and obtaining multiple quotes before proceeding with any renovations.
Online purchase scams necessitate careful scrutiny of website security features and avoiding impulsive purchases advertised on social media platforms.
Preventive Measures You Can Do Right Now
Financial transactions are often conducted online and fraudsters and scammers continue to evolve their tactics, making it important for us to be proactive in safeguarding personal information and money. Here are five strategies you can do right now to keep yourself safe:
Create Strong Passwords: Use unique and complex passwords for each financial account, avoiding personal information and opting for at least 12 characters with a mix of random characters, numbers, and phrases.
Enable Multi-Factor Authentication (MFA): Utilize MFA whenever possible to add an extra layer of security.
Protect Your PIN: Change your PIN regularly and avoid using easily guessable information like birthdays or social security numbers. And don’t use your PIN as your phone password (we know you’re out there).
Secure Credit Card Information: Avoid sharing credit card details via email and only use secure websites for online transactions. Be cautious with public computers and be sure to clear browsing history after use.
Check Your Credit Report: Regularly review your credit report for errors or unfamiliar accounts, which could indicate identity theft. Report any discrepancies to Equifax and TransUnion, and notify the Canadian Anti-Fraud Centre if fraud is suspected.
Here’s a few other strategies to keep in mind:
Shred personal and financial documents before putting them in the garbage
Retrieve your mail on a regular basis to limit possible mail theft
When you move, notify the post office and your bank and service providers
In the Moment
We might not think about it, but many of us encounter scams every week, whether it’s a phone call, email, text message or social media post. Usually, we can identify them because they’re not disguised very well, but sometimes when the circumstances are right, they might not feel as obvious. For example, you could get an email that appears to be from Amazon saying there was an issue with an item you ordered, and you have actually ordered an item from Amazon. How can you tell the email is real, or a scam? Here are a few things you can keep in mind when scams reach you:
Email Addresses: Verify the sender's email address for any discrepancies or unfamiliar domains.
Logos: Pay attention to any inconsistencies or alterations in logos that may indicate a fraudulent communication.
Phone Numbers: Be cautious of unfamiliar or suspicious phone numbers, especially if they pressure you to take immediate action.
Links: Refrain from clicking on links embedded in emails or messages from unknown sources, as they may lead to phishing websites or malware downloads.
Attachments: Avoid opening attachments in emails or messages from untrusted sources, as they may contain malicious software or viruses.
Seek Second Opinions: If you're unsure about the legitimacy of a communication, seek advice from a trusted friend or family member.
The last thing to remember for rejecting frauds and scams is there is often psychological manipulation in play. Scammers and fraudsters might put you under pressure with time sensitive requests. They might also trick you into thinking you made a mistake. They can also toy with your emotions and act like they are angry or sad to try and manipulate you. So, here’s us giving you permission to be a little mean if you have to: hang up the phone and block suspicious messages.
Report
You are not in trouble if you have been scammed and you are not stupid if you’ve been scammed. Many of us are afraid to seek help for these very reasons. You can report scams and frauds as you notice them and if you’re a victim. Contact the Canadian Anti-Fraud Centre toll-free at 1-888-495-8501 or through the Fraud Reporting System online. If you see a scam online, most platforms have a button to report it directly that might say something like "Report Account," "Report Post," or "Report Ad." If you spent money on something and think it was a scam, report the incident to your financial institution. If it's identity fraud, place flags on all your accounts, change passwords, and report the fraud to credit bureaus like Equifax and TransUnion. You can also report the incident to your local police and obtain a file number for future reference. Just remember to stay calm and gather all information related to the fraud, including documents, receipts, and copies of emails or text messages. Remember knowledge is your best defense against frauds and scams, and unfortunately many scammers are smart, just like you.
The Government of Canada has a whole section on scams and frauds that includes even more details than we’ve shared in this post, and also contact information for you if you think you’ve been scammed. Find the link to their website here.
Bonus!
Hello there! I helped write this blog post and now I’m breaking the fourth wall (lol). I’m a support staff for Money Path, my full time position being with MetroWorks. I just wanted to share something with you that’s related to frauds and scams. There’s a YouTuber called Kitboga I watch sometimes. With comedy and entertainment, he basically uses chaotic means to waste scammers’ time, while reporting their information if he’s able to get it. He also stays up to date with new scam methods and figures out how they get people’s money and information. I watch his videos sometimes just for fun, and I think many of you might like his videos, too. Here is his channel link, Kitboga, and the description is: “Everyday there are scammers taking advantage of people. I call them to waste their time, walk people through their "script" and lies, report info when I can, and otherwise make light of a dark situation.” Happy watching!
