Fraud Prevention Month 2024 recap

A look back at our 2024 fraud features

In 2023, there were 5,850 reports of phishing and $50.3 million lost to romance scams in Canada alone. 

Phishing is when criminals trick you into giving away your personal information or clicking on seemingly “harmless” links on emails, downloadable attachments or even QR codes.

Safety tips:

• Real organizations won't request personal info via email or text.
• Look out for spelling mistakes.
• Go to the organization's official website to verify or make contact, never use the phone number/email from the suspicious message.
• Don’t reply to spam messages, click links (even to unsubscribe) and open attachments.

Romance scams happen when a scammer tries to convince you to enter a virtual relationship so they can gain your trust and affection through email and social media. They will eventually ask you for money, to join a business venture or receive illegal money from them. 

Safety tips:

• Be cautious if they always have an excuse not to meet in person.
• Use caution if the person wants to quickly move to a private or different mode of communication outside the dating app.
• Don't send money to someone you've never met, especially if they act distressed or angry.

A business scam is when scammers target businesses of all sizes to steal information and/or money. 

Clones or fraudulent websites and social media accounts are created to trick consumers into purchasing fraudulent products or to gain personal and/or banking information. 

Email cloning, compromise and employee impersonation scams happen when scammers use Malware to get into a business’ email server, create an email similar to a business address, or impersonate a business executive to trick other employees or clients into clicking a link, purchasing gift cards or even requesting payroll changes. 

Safety tips:

• Use caution when interacting with websites and social media accounts. Be certain the site you're purchasing from or clicking on is legitimate. If you're worried, call the business to confirm the website or social media account is trusted.
• Change your email passwords often.
• Educate employees at every level to be wary of emails impersonating others. When in doubt, call your employer or employee to confirm the email is coming from them.

In 2023, there were over 11,200 reports of identity theft and fraud, making it the number one fraud of 2023.

Identity theft is when a criminal steals someone’s personal information and uses their identity. This information is usually collected by stealing someone’s mail, dumpster diving, phishing and computer spyware. Identity theft usually leads to identity fraud…

Identity fraud is when criminals use stolen personal information to commit another crime, such as logging into a bank account to steal money, applying for loans or credit cards, buying goods or services and even getting passports or receiving government benefits.

Safety tips:

• Use caution when receiving unknown e-mails, text messages, telephone calls or mail asking you for personal or financial information.
• Check your credit reports and bank statements regularly and watch for unusual activity on your accounts.
• Check your mailbox often and shred your personal documents before throwing them out. 
• Notify your financial institutions or government if you change addresses.

This type of scam happens when someone claims to be an employee of the Canada Revenue Agency (CRA) or Service Canada. They will threaten to have you fined, arrested or deported unless you click a link, share personal information, send money or receive money to gain your banking information. These scams are usually delivered via phone call or text message. 

Safety tips:

• The CRA will never ask for payment or send funds via text message.
• The caller asks for information not associated with the CRA, like a credit card number. 
• Before giving away personal information over the phone, check to ensure the person is a CRA employee. Ask for their name, phone number and office location then hang up and call the CRA back directly to confirm the caller was legitimate. If they were, call the employee back on the number they provided to further discuss the issue.
• Do not provide information to callers offering to apply for benefits on your behalf. You can do so on the Government of Canada website.

Emergency scams are when a scammer uses someone’s fear of a loved one being hurt or in trouble to get money fast. These typically show up in the form of a phone call or text message where the scammer pretends to be a family member or friend who needs bail money, money for a car accident or they’re having trouble returning from a foreign country.

Safety tips:

• Hang up the phone and refrain from texting the number back. Instead, call the friend or loved one yourself using a phone number you already have.
• If they claim to be a law enforcement official on behalf of a loved one and request money or personal information, hang up and call your local police directly.
• Don't just rely on caller ID. Scammers can fake those too!
• Be careful what you're posting online. Scammers can use this personal information against you.

In 2023, there were over 4,000 reports of investment scams and $309.4 million lost, making it the number one scam based on dollars lost last year. 

Investment scams target individuals to invest in fake or deceptive investment opportunities. These opportunities often promise higher-than-normal returns, but investors often lose most or all their money in the end.

Celebrity endorsements and deep fake scams happen when “celebrities” endorse investment opportunities on social media, but the endorsement videos or images are artificially generated. 

Cryptocurrency scams happen when scammers offer you cryptocurrency buy-ins promising a high rate of return in a short amount of time. Instead, the victim will lose their investment and sometimes their personal financial information. 

Pump and dump scams are when a scammer promotes a great deal on a low-priced stock, but they own a large amount of it. As more investors buy shares, the value continues to grow. Once it reaches its peak, the scammer will sell their shares and the shares become worthless.

Safety tips:

• Don't trust everything you see on social media — it can be artificially generated.
• Rather than relying on celebrities, influencers, friends and family when it comes to investments, leave it to the professionals and do your research before investing.
• If it sounds too good to be true, it probably is.

If you or someone you know is a victim of cybercrime or fraud, report it to your local police and the Canadian Anti-Fraud Centre by phone at 1-888-495-8501 or online at www.antifraudcentre-centreantifraude.ca