Fraud and Scams

ATM scams involve criminals stealing debit or credit card numbers and corresponding pin codes when victims use ATM machines. This can result in unauthorized withdrawals from the victim's account. When credit and debit card information is stolen electronically, it's called card skimming. 

How to protect yourself?

• Never give someone your PIN.
• Always cover your PIN when using ATMs.
• Use ATMs in banks or in safe and secure, well-lit locations.
• Avoid standalone ATMs.
• Regularly monitor your bank statements for unauthorized transactions.

If you believe your bank account has been compromised and unauthorized transactions have occurred, you should first contact the bank and then file a police report. You should also contact Equifax and Transunion to have your credit monitored.

If the bank reviews your complaints and takes responsibility for the loss, they will report it to police and there is no need for you to report it.

If the bank determines that you are responsible for the loss, you must get a letter in writing from them and follow up with the police.

How to protect yourself?

• Always cover your PIN when using debit or credit cards.
• Never give out your PIN.
• Avoid giving out personal information over the phone or to businesses you haven't researched.
• Be careful when buying and selling items online through website or news ads. Just because it's posted on a reputable source, doesn't mean it's not a scam.
• Check your monthly bank statements regularly to make sure all transactions are authorized.
• Get a credit check once a year.

Con artists will appeal to your emotions and demand immediate action, affecting your ability to use logic or ask questions.

In one example an upset person calls or texts you stating they are a family member, and they may use the person's name and claim they need money to be bailed out immediately. A second person will take the phone, claiming to be an police officer or lawyer who will give you instructions on how to wire the money or direct you to put it in an envelope that will be picked up by a courier.

How to protect yourself?

• Courts will never ask for cash to bail our someone in custody and will require people to be present in court.
• Be suspicious of calls that require immediate action. Hang up and contact the family member directly.
• Never send cash, cryptocurrencies or any other funds to unknown persons, unverified addresses or bank accounts.

Con artists pretend to work for Canada Revenue Agency (CRA) or Immigration, Refugees and Citizenship Canada. They request that you pay a bill immediately or they may tell you that you have a tax refund. The con artist then asks for personal or banking information which will allow the person to access your money.

In one of these types of scams, the con artists phones you and demands you pay immediately, or you will go to jail or get deported. As fraudsters have become more sophisticated, they may send text messages that appear to be from the CRA or emails demanding payment or information.

How to protect yourself?

Remember, the CRA will not:

• Send refunds by e-transfer or text message.
• Demand or pressure immediate payment by:
  • Interac® e-transfer
  • Cryptocurrency (Bitcoin)
  • Prepaid credit cards
  • Gift cards from any type of retailer
• Threaten to deport or arrest you, or put you in prison.
• Use aggressive or threatening language.
• Set up an in-person meeting in a public location to collect a payment.
• Charge a fee to speak with a call centre agent.
• Ask for personal or financial information in a voicemail or email.

Click here for more tips from CRA on how to recognize scams and protect yourself.

Beware of calls, emails or texts claiming to be from your financial institution. Fraudsters will ask you for personal and banking information, or in a text or email ask you to click on a link.

How to protect yourself?

• Don’t assume that the phone numbers appearing on your call displays are accurate.
• If a caller claims to be from your financial institution, advise them that you will call them back. End the call and dial the number on the back of your debit or credit card from a different phone if possible or wait for 10 minutes before making the phone call.
• Never click on links in emails or text messages.
• Remember that financial institutions will never ask you to turn over your bank card.

A scammer may contact you and ask you for a donation to charity, association, foundation or a good cause. They will use high pressure tactics to get you to donate. They are not associated to the charity they claim to be collecting donations for. These fraudsters prey on the generosity of our community. Also, beware of deceptive crowdfunding ads.

Make sure your donations are going to the right place or charity.

How to protect yourself?

• Refuse high-pressure requests for donations.
• Registered charities don't accept cryptocurrency as a payment method.
• A legitimate charity or fundraiser will give you information about the charity's mission, how your donation will be used and proof that your contribution is tax deductible.
• Ask the solicitor for the registered charitable tax number of the charity to confirm the charity's registration information with the Canada Revenue Agency or by phone at 1-800-267-2384.

Frauds and scams have become more sophisticated, especially in the way social media, text messaging and buy-and-sell websites are being used to deceive community members with legitimate-looking products, links and websites. To help protect yourself from fraud, it’s important to do a little research before clicking on that link via text or online that is promising huge discounts, money and products that seem too good to be true.

Tips to protect yourself when shopping online:

• Don’t click on links from social media or text messages. Instead, go to the online retailer’s legitimate website in another browser.
• Recognize the red flags such as:
  • Websites that are poorly designed and look unprofessional
  • Return and privacy policies that are either unclear or missing
  • Missing contact information
  • Deals that are too good to be true
• Buy from retailers or individuals you know by reputation or from past experience.
• Beware of online retailers that direct you to a third party when you checkout.
• Monitor your credit card statement for any unknown transactions.

Gift cards are a popular and convenient way to give a gift but remember that they are not meant to be used to pay for things such as legal fees or a tax bill. If you get a call from someone pressuring you to buy hundreds or thousands of dollars worth of gift cards, we advise that you hang up – immediately.

The caller may pose as a friend or family member who needs help, someone from the government or your bank, but please know that no legitimate business or organization will request gift cards for payment. If you receive a text or email from your employer to purchase gifts cards, always confirm that first with your boss or supervisor first.

Service scam fraudsters often claim to be either your existing service provider or offer you a service for a lower price. The most common ones are cellphone and internet provider scam calls. Don’t fall for a phone call from someone claiming to be from your service provider. They will request personal information over the phone, including your credit card number. Always locate the official phone number and follow up with a phone call that way.

In this scam, there are often two people involved: one who poses as the driver of the fake taxi, while the other pretends to be a passenger who approaches the victim asking for help. This usually takes place in a parking lot of a plaza or mall. This is also the same approach with a pizza delivery scam.

The fake passenger/pizza purchaser approaches the potential victim claiming the taxi driver/pizza delivery driver will not accept cash as payment for a fare/pizza and asks if the victim can use their own debit card or credit card to pay the fare/pizza, with the fraudster offering to pay them in cash.

The victim then inserts their card into a modified point of sale terminal to pay the fare/pizza, and the machine records the PIN. The fake passenger then gives the victim cash to cover the fare/pizza. Meanwhile, the fake driver swaps the victim's real debit card or credit card for a fake one, which is then returned to the victim. The scammers then use the stolen debit card or credit card and PIN to withdraw funds from the victim's account.

How to protect yourself?

• Never hand your card over or disclose your PIN to anyone else.
• If you do hand over your card, ensure that the card that is returned to you is your card.
• If you are asked to insert or tap your card, beware of fake wireless point of sale terminals or those not connected to the internet. If something seems strange, don’t go through with the transaction.
• If you believe you've been a victim of the taxi/pizza delivery fraud scam or any other type of financial fraud, contact your financial institution immediately and report the incident to your local police.

Fraudsters are using Artificial Intelligence (AI) to manipulate videos and make them appear like celebrities and politicians are endorsing cryptocurrency investments. As fraudsters become more sophisticated, these deepfakes look like real videos and they are often posted on social media platforms luring people and promising them high revenues with no risk.

We encourage all investors in our community to do their research, not trust social media ads and unsolicited messages or emails, ask questions and invest their money carefully.

How to protect yourself?

• Know how to identify deepfakes. Well-known trusted celebrities and politicians will not appear in videos to promote investments.
• If it’s too good to be true, it’s probably not true. Beware of investment ads that promise high returns and no risk.
• Research before investing. Check with regulatory bodies like the Ontario Securities Commission when investing.
• Always keep your personal and banking information safe.
• If you suspect that you have been a victim of an investment scam, report it immediately, and contact your financial institution to secure your bank accounts.

Every year, Canadians lose millions of dollars to romance scams. Scammers often leave victims with emotional distress and feelings of embarrassment. If you’re a victim of a romance scam, you’re not alone. Please report it to your local police and contact your financial institution immediately.

How Romance Scams Work:

A romance scammer creates convincing fake identities on social media, dating sites or other online platforms, often using stolen photos and fake personal information. They create personas that appeal to their victims, often posing as doctors, military, oil rig engineers or entrepreneurs. Once they gain their victim’s trust, they invent urgent financial needs and ask for money through wire transfers, gift cards, cryptocurrency ATMs etc. After receiving the funds, the scammer disappears, leaving the victims in emotional distress.

Red Flags to Watch for:

Be cautious if someone you meet online:

• Professes love before meeting in-person.
• Consistently avoids phone or video calls.
• Makes excuses to not meet in-person, often claiming they’re working abroad.
• Has profiles that are too good to be true.
• Addresses you by the wrong name or sends poorly written messages.
• Shares elaborate, dramatic stories to gain your sympathy.
• Acts distressed or angry to guilt you into sending money.

How to protect yourself?

• Don’t share personal details such as your date of birth, address, work details or financial information with new relationships or strangers.
• Research the person’s identity. Use tools such as Google reverse image search to determine whether they have copied their photos from the Internet.
• Don’t share intimate photos or videos with someone you have met online. These may be used in blackmailing.
• Avoid sending money in any form to someone who has not met in-person.
• Be careful of what you share on social media. Scammers often use these as insights to create their tactics.
• If you believe you’ve been a victim of a romance scam, immediately report it to your local police and contact your financial institution.

For more information and tips on protecting yourself and your loved ones, visit the Canadian Anti-Fraud Centre's page on romance scams.