Common scams
Every day, we hear stories about fraud and think it could never happen to us. Unfortunately, there’s a good chance that it will happen to you, or to someone close to you. Many scams rely on tactics such as catching you off guard, aggressively pushing you for a response, or frightening you into behaving impulsively and responding before considering the repercussions.
Select a scam below to learn more.
Charity and donation
Much like legitimate charities, scammers solicit funds for fake charities through the phone or door-to-door. Scammers take advantage of the generosity and empathy of people by posing as relief organizations following natural disasters, grieving communities, and other world events. Before you donate to any cause, take the time to be safe and contact the charity yourself. The organization can also confirm if they have a fundraising campaign on at the time. You can also check with the Canada Revenue Agency to make sure the organization is a registered charity.
Means of contact
Claiming to be an organization that may or may not exist, scammers can target individuals, use affinity groups such as other charities, religious groups, associations and federations to "phish" for victims.
Tactics used
This technique is also used for raising money through fraudulent crowdfunding.
Means of contact
- Text
- Internet
- Phone
- Online advertising
- In person
Claiming to be an organization that may or may not exist, scammers can target individuals, use affinity groups such as other charities, religious groups, associations and federations to "phish" for victims.
Tactics used
- Uses high pressure tactics to get you to donate immediately
- Uses “people you know” or organizations you belong to as an enticement
This technique is also used for raising money through fraudulent crowdfunding.
Identity
Identity fraud is the most reported of all types of fraud in Canada, but because victims are not responsible for any financial losses, the high numbers can go unreported. Identity fraud is a violation of personal privacy and can have long-term impact on the victim. The stolen information often forms the foundation on which all other private information is tied. The impact can affect your banking, credit, passport or Social Insurance Number, all of which can lead to a wide range of fraud possibilities that can take years to correct.
Means of contact
Various, depending on how or what they do to acquire your personal information.
Description of scam
The scammer uses your stolen information for criminal purposes or to commit other crimes, such as applying for loans and credit cards, accessing your accounts and transferring funds, opening back accounts in your name, or even using your name in an effort to hide criminal activities.
Tactics used
Identity fraud is a serious issue that can spread through many areas of your life. To avoid personal information from being used by others:
Means of contact
Various, depending on how or what they do to acquire your personal information.
Description of scam
The scammer uses your stolen information for criminal purposes or to commit other crimes, such as applying for loans and credit cards, accessing your accounts and transferring funds, opening back accounts in your name, or even using your name in an effort to hide criminal activities.
Tactics used
-
Obtains personal information from activities such as dumpster diving, mail theft, pickpocketing, physical theft etc.
-
Database breaches, phishing, and technology-based theft also provides access to personal information.
Identity fraud is a serious issue that can spread through many areas of your life. To avoid personal information from being used by others:
-
Check your bank and credit cards for irregular charges.
-
Shred all personal and financial documents before you recycle them.
-
Do not leave mail outside in the mailbox. Make sure you check your mail daily, recycle or shred it if it’s addressed mail. Remove and shred addressed mail from shared mailbox areas, such as apartments and public post boxes. If you're going to be away, ask someone to clear your mailbox for you.
-
If you move, have your mail forwarded. It may cost you, but the fee will be less than the harm if scammers have your private account information.
-
Do not carry your birth certificate or Social Insurance Card. Neither of these are required for identification and carry valuable personal information.
-
Ensure that you shred all personal, account, tax and other identifiable, private information.
-
Check your credit report to ensure it is accurate. For information on obtaining a credit report go to the Resource Centre
Immigration
There are a number of immigration scams that target those going through the lengthy immigration process or who are new to Canada. Language barriers can add to the pressure and anxiety around ensuring your documentation is in order. Some offer fee for services, promising faster processing, or help with identification.
Means of contact
Posing as government officials on the phone, scammers try to scare people into thinking they have made an error in their documentation, are in trouble, and/or need to pay outstanding fees. They threaten deportation and other tactics. Another scam is to send an email with a link to a fee for services website to "help" you with your application or promising to speed up the processing time. The forms required for government identification are free. No one can speed up the process.
Tactics used
Means of contact
- Internet
- Phone
- In person
- Text message
Posing as government officials on the phone, scammers try to scare people into thinking they have made an error in their documentation, are in trouble, and/or need to pay outstanding fees. They threaten deportation and other tactics. Another scam is to send an email with a link to a fee for services website to "help" you with your application or promising to speed up the processing time. The forms required for government identification are free. No one can speed up the process.
Tactics used
- Promises faster processing times or other guarantees
- Offers to help with immigration by paying a fee
Job
Many scams target those looking for work or looking for a way to make money fast. From mystery shopping to car wrapping , scammers use the prospect of great money, fast to lure people into "applying" for positions that are actually scams. They will attempt to recruit through unsolicited email or text messages, online advertising, social media or job posting sites. The moment you applied, you became the target of fraud. You will get the job and the scam will progress.
Means of contact
- Text
- Internet/online
- Social media phone
- Fax
The scam starts with the promise of earning big cash, fast for doing any number of jobs with titles like mystery shopper, quality control officer, or financial agent, none of which are legitimate jobs. You apply and receive notice that you've gotten the position.
Along with your offer, you receive a cheque and instructions to deposit the cheque into your account and then transfer a majority of the funds into an account number they've provided. The cheque is often referred to as a signing bonus or to purchase required equipment. Regardless of your role, you'll be asked to make small purchases such as gift cards and then provide the scammers with the codes from the back of the cards. At each step, you'll receive a service survey based on your activities. This is part of the scam as the survey are only a prop to convince you the job is real. Eventually, you will discover that the cheque was fraudulent and that now you owe money to the bank.
Tactics used
There are many variations of this scam but they all promise fast and easy money, and instead lead to the victim to lose money.
- Car wrapping
- Financial agent
- Data entry (prepay for equipment and training)
- Pyramid marketing
- Stuffing envelopes (referral scam)
- Mystery shopper
- Reshipping scams (postal forwarding where you repackage stolen goods)
Read our Fraud Files article for a real-life example of this scam.
Lottery
Congratulations! You've won the lottery/sweepstakes/grand prize. But of course, you haven't won a thing and instead could be on the hook for fees associated with your winnings.
Means of contact
You receive an email or call advising you that you've won a lottery, prize, or vacation. All you have to do to claim your prize is send a small fee or tax payment. There are no prize fees or taxes in Canada. If you won it, it's free.
Legitimate contests don't charge fees for you to collect your prize.
Tactics used
Since you've already won, the scammers want to make it easy. All you have to do to claim your prize is to send a small fee or tax payment
Additional information
Legitimate contests and lotteries do not charge you to collect a prize. This is how scammers get you to send cash or obtain your chequing account or other financial information. Of course, the winnings never arrive.
Means of contact
- Phone
- Fax
- Text message
- Website popups
- Internet
You receive an email or call advising you that you've won a lottery, prize, or vacation. All you have to do to claim your prize is send a small fee or tax payment. There are no prize fees or taxes in Canada. If you won it, it's free.
Legitimate contests don't charge fees for you to collect your prize.
Tactics used
Since you've already won, the scammers want to make it easy. All you have to do to claim your prize is to send a small fee or tax payment
Additional information
Legitimate contests and lotteries do not charge you to collect a prize. This is how scammers get you to send cash or obtain your chequing account or other financial information. Of course, the winnings never arrive.
Online shopping
Online shopping is a favourite pastime for many consumers. But many of the online deals — from inexpensive designer purses to significantly discounted electronic gadgets — are too good to be true. Fraudsters can create accounts on legitimate auction sites, such as eBay, or on an online marketplace, like Kijiji or Craigslist to sell non-existant items.
Means of contact
Scammer sets up fraudulent accounts on sites such as eBay, Kijiji, or Craigslist, with links to spoofed or fake websites, to lure shoppers to purchase from them. They will advertise their products at very low prices, enticing you to buy them.
In the end, if you do get something, it might be of poor quality or a bad imitation of what you expected.
Tactics used
Online fraud is on the rise according to Canada's Better Business Bureau, up 87% since 2015. In 2022, 55% of scams are perpetrated online.
Do your research before you buy any product online. Make sure you know the name of the company, their contact information, and terms and conditions of the purchase. Without this information, it will be difficult to get your money back or in some case, to stop the purchases on your credit card. Read more about subscription traps.
Means of contact
- Internet
- Online advertising
- Online marketplaces
Scammer sets up fraudulent accounts on sites such as eBay, Kijiji, or Craigslist, with links to spoofed or fake websites, to lure shoppers to purchase from them. They will advertise their products at very low prices, enticing you to buy them.
In the end, if you do get something, it might be of poor quality or a bad imitation of what you expected.
Tactics used
- Extremely low prices used as bait to drive traffic to their site. If they do deliver a product, it’s not as advertised.
- Links in the account to websites that look legitimate but are for gathering information in order to gain access to accounts and credit cards.
Online fraud is on the rise according to Canada's Better Business Bureau, up 87% since 2015. In 2022, 55% of scams are perpetrated online.
Do your research before you buy any product online. Make sure you know the name of the company, their contact information, and terms and conditions of the purchase. Without this information, it will be difficult to get your money back or in some case, to stop the purchases on your credit card. Read more about subscription traps.
Pension
Many people as they approach retirement worry about having enough money to last. This anxiety attracts scammers who prey on this feat and promise high return, low-risk investments to seniors.
Means of contact
With pension scams, fraudsters offer to unlock pensions funds and claim to be able to convert pensions into tax-free cash. A typical version of this scam involves transferring lock-in funds to a self-directed RRSP and purchasing funds in a private company who makes a promise to "loan" the owner 70-80% of the funds to be paid back at a later time.
Of course, the investment is worthless and in fact, you may end up paying taxes on the cash you never received. Victims lose their money and their retirement dreams.
Tactics used
Means of contact
- Phone
- Advertising
With pension scams, fraudsters offer to unlock pensions funds and claim to be able to convert pensions into tax-free cash. A typical version of this scam involves transferring lock-in funds to a self-directed RRSP and purchasing funds in a private company who makes a promise to "loan" the owner 70-80% of the funds to be paid back at a later time.
Of course, the investment is worthless and in fact, you may end up paying taxes on the cash you never received. Victims lose their money and their retirement dreams.
Tactics used
- Offers cash in hand tax-free
- Convinces the pensioner to put the retirement funds into a high-return, low-risk investment, which are actually very risky or don't exist at all
Romance
In 2021, romance scams represented the second highest dollar loss, after investment scams. These scams prey on people through dating sites who are vulnerable. They then manipulate and entice these vulnerable people to enter a virtual relationship.
Means of contact
Scammers create fake profiles on social media and dating sites to target trusting people who they then manipulate. The game is to win over the trust and affection of the victim so they will drop their guard. Once this happens, it's an opening to begin the next stage.
Tactics used
Romance scammers will request money for things like travel, to help solve an “emergency,” medical expenses, or for family assistance. They can also request you receive money on their behalf from questionable or unknown sources, or increasingly in cryptocurrency investments.
Additional information
Read our Fraud Files article for a real-life example of this scam.
Means of contact
- Text
- Internet
Scammers create fake profiles on social media and dating sites to target trusting people who they then manipulate. The game is to win over the trust and affection of the victim so they will drop their guard. Once this happens, it's an opening to begin the next stage.
Tactics used
Romance scammers will request money for things like travel, to help solve an “emergency,” medical expenses, or for family assistance. They can also request you receive money on their behalf from questionable or unknown sources, or increasingly in cryptocurrency investments.
Additional information
Read our Fraud Files article for a real-life example of this scam.
Service
You’re relaxing at home when the doorbell or phone rings. Do you open the door or pick up the phone? From cleaning to computers, learn to spot these common service scams.
Means of contact
Scammers try to make a connection and convince you that you need a product, service, repair, or support requiring specific expertise, or at an impossibly low cost, such as:
If the offer seems too good to be true, it probably is. Before agreeing to any services, be sure to do your research:
Means of contact
- Internet
- Phone
- In person
Scammers try to make a connection and convince you that you need a product, service, repair, or support requiring specific expertise, or at an impossibly low cost, such as:
- Air duct cleaning
- Low interest rate and credit cards
- Insurance
- Computer tech support that require access to your computer.
- Cell phone support
- Immigration services
- Often they will focus on a neighbourhood, going door-to-door.
- Unsolicited telephone calls (they may claim to be a Microsoft or other well-known computer company employee).
- Requests for passwords, personal identification, banking or account information.
If the offer seems too good to be true, it probably is. Before agreeing to any services, be sure to do your research:
- Is the company reputable?
- Does the company get good reviews?
- Have there been complaints registered with the Better Business Bureau?
Social engineering
Social engineering is a term used to describe a broad range of manipulative behaviour to trick you into revealing personal or confidential information.
Means of contact
Social engineering fraud leverages human behaviour to trick people into divulging information. Unlike hacking, which involves technical expertise, social engineering exploits human error in order to access private information, networks, data, and other restricted systems.
Tactics used
Social engineers are practiced in the art of persuasion and know that when exposed to these tactics, many people will take actions they wouldn't otherwise.
One of these tactics is to use emotional manipulation. You're much more likely to take a risk when in an enhanced emotional state.
Time-sensitive requests are another tactic in a social engineer's toolbox, as they create a sense of urgency. Gaining your trust is an essential part of the scam.
Additional information
Read our social engineering article to learn more about this tactic.
Means of contact
- Internet
- Text
- Phone
Social engineering fraud leverages human behaviour to trick people into divulging information. Unlike hacking, which involves technical expertise, social engineering exploits human error in order to access private information, networks, data, and other restricted systems.
Tactics used
Social engineers are practiced in the art of persuasion and know that when exposed to these tactics, many people will take actions they wouldn't otherwise.
One of these tactics is to use emotional manipulation. You're much more likely to take a risk when in an enhanced emotional state.
Time-sensitive requests are another tactic in a social engineer's toolbox, as they create a sense of urgency. Gaining your trust is an essential part of the scam.
Additional information
Read our social engineering article to learn more about this tactic.
Subscription traps
Scammers advertise a free trial of a product, or a free gift upon completion of a survey they've provided. In order to receive this product you'll be asked to provide a credit card number to cover shipping and handling.
Means of contact
Using online advertising, scammers promote free trials of a products, or upon completion of a survey, you will receive a gift. These are ways to grab attention but the products are just the lure. The real scam involves getting you to register and then using your credit card to charge future "subscription" fees that can end up costing thousands of dollars. It can be very difficult to stop the delivery and billing of these scams.
Tactics used
Means of contact
- Internet
Using online advertising, scammers promote free trials of a products, or upon completion of a survey, you will receive a gift. These are ways to grab attention but the products are just the lure. The real scam involves getting you to register and then using your credit card to charge future "subscription" fees that can end up costing thousands of dollars. It can be very difficult to stop the delivery and billing of these scams.
Tactics used
- Free offers and gifts in exchange for responding to a survey
- High-pressure sales tactics
- Urgent limited-time offers
-
Trust your instincts. Be skeptical. If it’s too good to be true, don’t sign up.
-
Before you sign up for a free trial, research the company and read reviews. If there are cases of fraud, the Better Business Bureau can be a valuable source of information.
-
Read the fine print. Don’t sign up if you can’t find or understand the terms and conditions. Pay special attention to pre-checked boxes, cancellation clauses, return policies, and any unspecified charges.
-
If you go ahead with a free trial, keep all documents, receipts, emails, and text messages.
-
Check your credit card statements frequently for repeated or unknown charges.
-
If you have trouble cancelling your subscription, contact your credit card provider, your local consumer protection organization, or law enforcement agencies.