An Ipsos poll published in February, 2023, found that 43 per cent of Canadians have been the victim of a fraud or scam in their lifetime, and the Canadian Anti-Fraud Centre reported 92,078 fraud incidents in 2022.Getty Images/iStockphoto
We’ve all gotten that suspicious type of call: It may have been an air duct cleaning salesperson, an automated voice telling you your Amazon package was stuck, or a call from Canada Revenue Agency warning that you owe the government money. You may or may not have known it at the time, but they were all scams.
An Ipsos poll published last February found that 43 per cent of Canadians have been the victim of a fraud or scam in their lifetime, and the Canadian Anti-Fraud Centre reported 92,078 fraud incidents in 2022. With more of our interactions taking place online and artificial intelligence tools upping the stakes, it’s getting increasingly difficult to discern when a message claiming to be an organization is real and when it isn’t. According to the Better Business Bureau, more than 68 per cent of all scams reported in the U.S. last year were attempted online.
In an attempt to stay up to date on the latest schemes, The Globe and Mail consulted anti-fraud experts and government agencies to put together a list of the most common scams currently taking place, what to keep an eye on and how to protect yourself.
Emergency scam / Grandparent scam
The emergency scam, also known as the grandparent scam, often happens by phone and most likely to more senior Canadians. A caller will pretend to be a loved one or a family member and claim they’ve been in an accident or charged with a serious offence, such as a DUI. Oftentimes, the phone will then be passed to a second fraudster, claiming to be a lawyer or police officer, who will then demand money to bail the loved one out of jail.
The Anti-Fraud Centre’s Jeff Horncastle told The Globe that one of the most prominent tactics fraudsters use during phone scams is caller ID spoofing, where they alter the caller ID on a phone call, to make it seem like they’re calling from an official number.
What to do next: If you receive a call claiming to be someone you know, hang up and give them a call back on a number you know. If they claim to be law enforcement or a lawyer, call them back through an official number. Be wary if the caller if trying to push you into an urgent decision, or is asking for cash.
I was scammed out of $15,000. Why didn’t I spot the red flags?
Tech support
This scam involves getting a call or an urgent e-mail from a fraudster, who claims that the target’s computer has been infected with a serious virus or malware. They then charge sums of money for repairs, or occasionally convince the victim to give them full access to their computer.
What to do next: It’s extremely unlikely that a reputable company would call you out of the blue about computer issues. If you believe you have an issue with your devices, do a scan through your installed security programs, or call a trusted expert, such as a technician from a computer electronics store.
Air duct cleaning fraud
The target will receive a call advertising a service (such as air duct cleaning or roofing) for an extremely low price and that tries to get credit card information or payment through the phone. Occasionally, the scammers do actually come to a victim’s home to do the work, but this could result in a shoddy job and invalid warranties.
Horncastle said scammers often get away with this since they know a person won’t be able to access the locations to check if the work is done properly, or at all.
“They’re preying on vulnerabilities because they know people are trying to save money, and are offering the service at a substantially lower price than a reputable company would,” Horncastle said.
What to do next: It’s important to do your research. Look up the company offering you a deal and check for a proven track record of good service.
CRA-related scams
These fraud attempts typically either try to deceive you into thinking you’re speaking to someone from a government or other institution, or trick you into sharing compromising personal or financial information. The CRA flagged that Canadians were receiving texts and e-mails from scammers pretending to be government officials, with fake links to claim deposits such as the Climate Action Incentive Payment.
What to do next: According to the CRA, if a caller claims to work for the government and demands your banking information or an immediate payment, you can ask for their name, work section and office location, and verify their identity by calling the CRA directly before moving forward.
Phishing scams
The most common and popular form of e-mail or text scam is phishing, where a user receives a message impersonating a person or organization they’re familiar with – an urgent message from FedEx, Amazon or Canada Post claiming there’s an issue with your package, for example.
The goal of a phishing message is to get the user to either click on a malicious link, or share their personal or financial information. It’s important to take your time when receiving such messages, as scammers are hoping you’ll make a rash decision because the message seems urgent.
“In most cases with phishing, victimization happens quickly,” Horncastle said. “Most victims realize immediately after providing the personal information or clicking on the link that something was a little off.”
What to do next: If you receive a message claiming to be from a person or organization you know, reach out to them through a different communication platform to confirm or deny the message. Avoid clicking on any links in the messages and check for spelling mistakes.
Have I been hacked? Cybersecurity experts share tips for protecting personal data
Fake websites for new immigrants
The federal government flagged fake websites as a vulnerable type of fraud for new and aspiring immigrants to Canada. These fake websites claim to be official government sites, and may offer special travel deals and guaranteed jobs.
“Don’t pay for offers of guaranteed entry into Canada or faster processing of your application. These claims are false,” the government’s site reads.
What to do next: If a website looks fake, look it up on a search engine to see if it has been flagged anywhere for fraud, and double check the URL to verify it’s legitimate.
Contests and sweepstakes
Sweepstakes and contest scams are still running rampant, where Canadians receive a call announcing they’ve won some glamorous contest with a huge prize or free trip. But the (almost always fake) prize comes with some extra tax or fee to claim.
“Don’t be fooled by claims that the offer is legal or has government approval – many scammers will tell you this,” Competition Bureau Canada says on its website. “Instead of receiving a prize, you will lose every cent you send to the scammer. And if you have provided other personal details, your identity could be stolen, too.”
What to do next: Don’t fall for the urgency of the offer, especially if you never signed up for any contests in the first place. If you do follow through with the contest, don’t pay any extra fees or costs to claim a prize.
Extortion
Extortion typically involves an e-mail where a fraudster claims they’ve hacked into the victim’s personal computer and accessed compromising photos or videos. They threaten to release them online unless a payment is made.
What to do next: If this happens to you, report it to your local police and the Anti-Fraud Centre.
Fake airline website scam
Travel agency Flight Centre said hundreds of imposter sites have been popping up online. The fake websites — which can feature prominently on search engines — impersonate Flight Centre to trick customers into spending thousands on fake flights.
What to do next: Though Flight Centre is working to get the sites taken down, check for spelling mistakes and any irregularities in the website design before buying your tickets.
Romance scam
Canadians on dating sites, apps, or other social media are contacted by a fake profile, and slowly builds an online relationship with them. The fraudster then begins asking the victim for money — a flight ticket for a visit or a medical emergency, for example — and then cuts contact after payment is sent. According to the Better Business Bureau, the percentage of people in the U.S. who reported losing money to romance scams has increased more than 300 per cent in the last few years.
What to do next: Be wary of profiles that seem too good to be true — or if you suspect the photos might be of someone else — and if they try to move your relationship too quickly. Any request for money should be considered a red flag.
Emergence of AI scams
A growing number of existing scams have been taking advantage of developments in AI technology. Deepfakes – a type of AI-generated video where a person’s likeness can be mimicked and manipulated – are being made to create fake advertisements featuring celebrities, in an effort to make a fraudulent product look legitimate. And AI chatbots are being used to fake conversations with potential victims – in romance scams, for example.
The Anti-Fraud Centre is monitoring the use of AI in scams, but Horncastle says that prevention is the same: Double-check the URLs, check if a company is reputable and do your research.
How to spot and protect yourself against fraud
Despite the huge range of different scams and frauds out there, Horncastle said that just staying vigilant and keeping yourself informed can make a huge difference. Fraudsters often try and get a potential victim to act fast and without thinking, so it’s important to take your time and make sure everything is legitimate before making any moves.
“Whether it’s two minutes or a week, take as much time as you need to look into whatever’s being offered or presented to you,” Horncastle said.
Do you think you’ve been a victim of a scam or fraud? Report it to the Anti-Fraud Centre here.