Protect yourself from fraud and scams

In this type of scam, the scammer calls you claiming to work for your financial institution, the government, local police or a non-profit organization. Their goal is to get you to give up confidential information or send them money.

In this case, the scammer calls you posing as a tech support employee from a well-known company. They tell you that you need to update a program on your computer. They work to gain your trust, then suggest you download some software while they stay on the line. In reality, the software gives them access to your computer and login information so they can take money out of your account.

Artificial intelligence (AI) is a kind of technology that allows machines to mimic human thinking.

Scammers can use AI to:

• Write texts, emails and messages in the style and language of a certain person or organization
• Imitate a person’s voice
• Create fake images, audio or videos of real people
• Collect personal information from someone’s social media

AI can be used to create images and videos that look and sound real. Watch out for signs that something might be fake, like unnatural body movements, unclear speech, missing details (such as a missing hand) or poor image quality.

Example

You see a video on social media with celebrities advertising investment products that let you get rich quickly.

Scammers can use AI to imitate the voice of someone you know. Think before reacting if you receive a call about an emergency situation, even if you recognize the person’s voice.

Example

You answer a phone call and recognize the voice of a family member. They say it’s an emergency and urgently ask for money or personal information, such as your credit card number or social insurance number (SIN).

AI can be used to create personalized messages based on personal information found on social media. Avoid sharing details about your personal life online, including your interests and hobbies.

Example

You post some photos from your last vacation on social media. A scammer uses your photos and personal details to pretend to be you. They send one of your friends a message that looks like it’s from you, asking for money to cover fake hospital bills.

• Always make sure information you see on social media is accurate by checking reliable sources. Do this even if the message appears to come from a trusted organization or person.
• Create a secret code word with your loved ones. If someone calls asking for money, ask for the code word to make sure it’s really them.
• Always make sure the situation being told to you is real. Look up the official phone number of the organization contacting you, or contact your loved one using the phone number you normally use.
• Limit the information you share on social media.
• If needed, strengthen your security settings for your accounts and devices.

Investment fraud is a strategy used by scammers to trick you into investing your money in no-risk, get-rich-quick schemes.

As cryptocurrency becomes more popular, so do crypto scams. Scammers usually try to get you to invest in something by promising high returns. They might also aim to steal your financial information or crypto assets. Learn more about how to spot cryptocurrency scams.

Pyramid schemes generate profits primarily by recruiting participants and having them recruit more participants, rather than by selling products to customers. Those at the top of the pyramid are the ones who profit the most from this scam. Be careful: pyramid schemes are illegal under the Competition Act, and participants can be prosecuted.

Ponzi schemes promise abnormally high returns to new investors. In reality, they use the money of these new investors to provide returns for existing customers. The scheme falls apart when a large number of members want to withdraw their money at the same time.

One form of mortgage fraud is when an applicant intentionally provides false information to a lender in order to get a mortgage they otherwise wouldn’t be granted. Other forms of this fraud involve industry professionals misrepresenting information to make a higher profit.

Examples of mortgage fraud include:

• Declaring a higher income than you actually earn
• Presenting a fake ID
• Lying about the source of your down payment
• Providing an inflated property appraisal

Scammers post fake job listings online to get you to fill out an application with your personal information. They often use the name of well-known companies to lure applicants. Some listings require you to pay up front for training or equipment, or disguise pyramid schemes as legitimate jobs.

For this scam, the fraudster mails you a cheque in your name along with a letter containing instructions.

• You’re given an opportunity to take part in a mystery shopper campaign where you’ll use and evaluate the services of a money transfer company.
• You’re allowed to keep a portion of the cheque amount as payment for your services, but have to return the rest to the scammer via the money transfer company or Interac e-Transfer®.
• You cash the cheque, which usually ranges from $900 to $4,500.
• You transfer the amount you were asked to return to the scammer.
• Your financial institution then informs you that it was a fraudulent cheque. Since you’ve already deposited the cheque and sent the money to the scammer, you can’t get it back.

• Never cash a cheque with an unknown origin.
• Don’t automatically trust unsolicited emails, text messages or letters from individuals or companies offering you a job.
• Know that a legitimate employer will never ask you to send them a portion of the money you make.
• Be vigilant. If it seems too good to be true, it probably is.

• If you haven’t deposited the cheque yet, bring it to your financial institution as soon as possible.
• If you’ve already deposited the cheque, contact your financial institution and tell them you think you’ve been scammed and deposited a potentially counterfeit cheque.
• File a police report.

Scammers sometimes use social media and dating sites to foster fake relationships, with the purpose of getting the victim to send them money at a later point. They usually claim to live far away and let the long-distance relationship develop over time. Then they invent a fake emergency, like an accident or illness, and request money from the victim. More requests for larger amounts follow.

Victims often lose their life savings and have to deal with the grief and embarrassment that the relationship they believed in was a scam.

The scammer targets a business and hacks the inbox of one of its vendors. They send out emails posing as the vendor, saying their banking information has changed and payments must now be sent to a new account. The business thinks they’re paying their vendor, but the money really goes to the scammer.

• Train your employees
  Employees who handle the business finances must be aware of scams and how to deal with them.
• Verify new banking information
  Confirm all banking information change requests by calling the supplier at the number you have on file.
• Create documentation
  Establish a written procedure for payments, accessible only to authorized employees. Set transaction limits and require manager approval for transactions that exceed those limits.