TransUnion Canada reports that 5% of all digital transactions in 2023 were flagged as potentially fraudulent, with the rate of suspected digital fraud attempts growing yearly by at least another 39%.
From fake job offers to phishing emails, online scams are everywhere – and they’re getting more sophisticated. There are hundreds of new scams launched online every day, targeting people just like you.
Your personal information is always at risk when browsing social media or shopping online. So, let’s dive into online scams and how to protect yourself from them so you don’t become the next victim.
Key Takeaways
- From phishing emails to fake lottery wins, scammers are becoming increasingly sophisticated.
- To protect yourself, always be cautious of unsolicited messages, verify requests through official channels, and use strong passwords along with two-factor authentication.
- Stay informed and educate those around you, report anything suspicious.
What are the latest online scams in Canada?
Keep in mind that this list is by no means comprehensive, but a snapshot of some of the most common scams as of November 2024.
Phishing and spear phishing
1. CRA scams
Fraudsters will send you either an email or a text message posing as a CRA official. They will tell you you’re eligible for a refund, and give you a link that leads to a fake CRA website. It looks identical to the CRA website, so you enter your login information. Bam, there goes all your personal data.
It’s also worth noting that 2024 has been a year of record privacy breaches for the CRA, so ensure you’re constantly monitoring your CRA accounts.
Watch out for: "Your Tax Return is Ready!" or “You are eligible for a $500 refund. Click here to provide your information.”
2. Delivery service scams
You wake up to an email or text claiming a package couldn’t be delivered due to unpaid fees or incorrect address information with a link. The link takes you to a fake website where you’re asked to pay a fee or input sensitive information.
Watch out for: "Your package from Canada Post is waiting. Pay $2.99 to confirm delivery."
3. Bank phishing
Now that online banking has become much more common, scammers often like to pose as officials from big banks. You might see an email from a bank that warns of unauthorized account activity, with prompts to login via a fake link.
Watch out for: Texts or emails that say "Urgent: Suspicious Login Detected!"
Online employment scams
4. Fake job offer scam
Some job listings aren’t all they seem – even on trustworthy platforms like Indeed or LinkedIn. Scammers post fake jobs on these platforms, usually offering high-paying, remote work. You’ll be asked to provide personal information or pay training, equipment, or application processing fees. These types of scams have increased in recent years, with significant losses reported by Edmonton police services in 2022.
Watch out for: "Work From Home - Earn $5000/Week as a Virtual Assistant!" After applying for a job, never send any money for a background check or a starter kit.
5. Overpayment scam
After getting hired, a scammer will send you a counterfeit check for equipment or payment. Then, they ask you to send part of the money back, or to a vendor. They want you to do this before a check clears, leaving you responsible when it bounces.
Watch out for: "Your first paycheck of $3000 includes funds for your work supplies. Transfer $1000 to our vendor for your equipment."
6. Mystery shopper scam
You get ‘hired’ as a mystery shopper. Your ‘job’ asks you to evaluate services by depositing checks and wiring money as part of the ‘test’. The checks are, of course, fake. And you? You’re liable for the lost funds.
Watch out for: "Congratulations! You’ve been hired as a mystery shopper. Deposit this $3500 check, keep $300 as your fee, and wire the remaining money to evaluate So-and-so services."
Online dating scams
7. Romance scams
Scammers take catfishing to a new level. They will create a fake dating profile on legitimate dating apps, build an emotional connection with you for months, and establish trust. Then, they request help. You care about this person, you may even love them – but you’ve probably never seen them in a video call or heard their real voice.
Watch out for: "I want to visit you, but I can’t afford the plane ticket. Can you send me $1500?"
8. Military scams
Scammers will claim to be a member of the military stationed overseas. They use stories of hardship or love to ask for money for leave, travel, or emergencies.
Watch out for: "I’m stationed in a conflict zone and need $3000 to arrange a flight to visit you."
9. ‘Joint account’ scams
The scammer claims they need your personal details to ‘add you to their accounts’. They don’t want to build a future with you. They’re stealing your identity. Like the Romance scam, you’ve likely never video-called this person or met them in real life.
Watch out for: "I need your banking info to set up our account."
Online shopping scams
10. Fake e-commerce websites
Scammers will create counterfeit online stores that mimic legitimate retailers, offering popular products at a significantly reduced price. Once you make the payment, the products never arrive – and you start seeing mysterious charges on your card.
Watch out for: Any misspellings in the URL, any reviews of the website, or any way you can verify this website is legitimate.
11. Counterfeit scams
For this scam, you will get a product. But it’s an imitation of the product you thought you were buying. Scammers will sell knockoffs as though they are genuine, often at prices comparable to the authentic items.
Watch out for: Branded clothing from an online store you don’t recognize.
12. Non-delivery scams
After purchasing goods online, the seller takes payment. You, however, have been waiting for three months now, and that package just isn’t coming.
Watch out for: Unresponsive sellers. Make sure you check reviews from everywhere you buy from to ensure other customers are getting products – but beware of overly positive reviews.
Online casino scams
13. Fake online casinos
Scammers create a counterfeit casino website that mimics legitimate platforms, enticing players with attractive bonuses and games. Once deposits are made, the winnings are withheld, or the site just disappears altogether.
Watch out for: A 200% welcome bonus with no valid licensing or regulatory oversight posted anywhere on the website.
14. Rigged games
Some unlicensed casinos will manipulate software to ensure players lose more often than statistically probable.
Watch out for: Slot games, in general.
15. Bonus abuse scams
Scammers will also sometimes scam as players. They’ll exploit casino bonuses by creating multiple accounts or use fake identities (or stolen identities), leading to unfair play and potential losses for legitimate players.
Watch out for: A player signing up multiple times to claim a welcome bonus repeatedly, violating the casino’s terms. At the table, they don’t tend to participate in chats, and will often make similar moves as their clone accounts.
Crypto and investment scams
16. Rug pulls
When developers launch new cryptocurrency projects, it will attract new investments. Then, they’ll withdraw all their funds or sell their shares, leaving investors with worthless tokens.
Watch out for: When new tokens gain popularity but the creators suddenly sell all their holdings. Don’t buy into something when a rich influencer tells you to.
17. Fake initial coin offerings (ICOs)
Scammers promote new cryptocurrencies or tokens, collect investments during the ICO, and then disappear –- along with all the money.
Watch out for: Promises of revolutionary products with no verifiable information about the team or project.
18. Cloud mining scams
Companies will offer mining services for a fee, but don’t perform any mining. Instead, they’re paying returns from new investors’ funds.
Watch out for: Services claiming to be Bitcoin but stop payouts after a few months.
Tech support scams
19. Tech support scheme
This is a widespread scheme in Canada. In 2022, Brampton, ON, a man was charged in connection with a transactional computer tech support scam that affected 330 Canadians between January 2020 and February 2022.
Watch out for: Calls or emails out of the blue that offer you help in exchange for granting remote access or banking information to someone you do not know. They will pose as a member of a business you trust.
20. Software support scam
A little different from above, this type of scam actually requires you to download fake or unnecessary software as a solution to often nonexistent problems. This software is usually malware disguised as security tools.
Watch out for: Any downloads of a "free antivirus" or anything that gives you a pop-up warning for viruses.
21. Mobile device scams
These scams target smartphone users (so, most people), often through malicious apps, fake app updates, or SMS messages claiming your phone has been compromised.
Watch out for: Texts telling you your phone has been infected and to install an "urgent update" with a link.
Fake charities and crowdfunding scams
22. Natural disaster relief fraud
Scammers will take advantage of a major disaster (a hurricane, a wildfire, so on) to exploit people’s goodwill. They may even use a name similar to a legitimate charity to enact this.
Watch out for: Email campaigns, door-to-door solicitors, and an overemphasis on appealing to your emotions with fake campaigns involving sick children, veterans, or abused animals. Make sure you verify a charitable organization’s existence and how they process payments directly through them, and not through the ‘agent’ reaching out to you.
23. Fake crowdfunding scams
Someone creates a GoFundMe campaign, or a Kickstarter, claiming they need money for a project or for a loved one who is battling a severe illness. It can be more, but generally, there’s an appeal for help. These will often come with staged photos, fabricated backstories, so on.
Watch out for: The images usually give this away – make sure you reverse image search images to ensure they’re original. A lot of the time, the same images will be attached to multiple campaigns.
Ransomware and malware attacks
24. Phishing email attachments
Scammers will send out emails disguised as legitimate business communications (invoices, job offers). When you open the attachment, ransomware encrypts the files. The attacker demands payment (usually in crypto) to unlock them.
Watch out for: Unsolicited business communications with invoices. If you don’t recognize something, or someone, don’t open it until you can verify it.
25. Social engineering on messaging platforms
This scam performs extremely well amongst gamers and people in gaming communities, as it tends to happen most on Discord – an online messaging platform tailored to gamers but used by many demographics. It can technically happen anywhere there’s a messaging platform, but Discord and Twitch DMs are the biggest culprits.
The scam involves an attacker who has logged into a friend’s account. They send out malicious links or files to everyone on their friend’s list, asking for help for some project or another that they’re working on.
Watch out for: Out-of-the-blue messages and random links/files. Never download anything without checking for viruses first. Don’t ask the scammer to prove themselves by sending anything on another platform – your friend could use a single password for multiple accounts.
SIM swapping
26. SIM swap attacks
Scammers will hijack your phone number to gain access to any accounts you own – bank accounts, crypto, government accounts, and so on. They’ll also be able to navigate SMS-based two-factor authentication this way, leaving your accounts defenseless.
Watch out for: If you suddenly lose service and, shortly after, there are unauthorized transactions on your accounts.
What are AI-powered scams/deepfakes?
2024 is the age of emerging AI technologies and with it, a whole new generation of scammers. With advances in artificial intelligence, scammers have started using deepfake technology to create realistic video and audio clips of people – CEOs, celebrities, even friends or family members. All just to trick victims into giving up money or personal information.
How do they work?
Scammers will create a convincing fake video or voice recording that appears to come from a trusted source. This is called a deepfake, and this type of scam has been weaponized en masse recently (especially against elderly communities and parents with children).
To give you an example, you may get a phone call from a ‘family member’ asking for urgent financial help due to being arrested or in some kind of trouble. They’ll ask for a money transfer and can be very highly persuasive. No one wants to turn down their loved ones in a time of need. That’s why this scam works so well.
That said, there are ways to tell if you’re speaking to a deepfake. Their requests may seem unusual or out of character. They may also ask you for unorthodox payment methods – like a gift card, a wire transfer, or cryptocurrency. They may respond strangely or give vague or strange answers to your questions.
To protect yourself, you’ll want to end communication with this person. However, they reached out to you, cut off communication. Then, you can call or message the loved one in question using a number you know is theirs. Better yet, assuming you know where your loved ones are supposed to be, you can visit them and ask them directly. You will then be able to verify whether the emergency is real.
How to tell if someone is scamming you online
It can be genuinely difficult to tell when someone is trying to scam you, especially when the messages are coming from a supposed loved one. Here are some telltale signs that can help you identify some red flags:
- Too good to be true offers: Some offers simply are too cheap to be true. Watch for language like "limited-time" or “too good to miss”, as it’s likely a scam. Scammers love to play on FOMO. Make sure you’re reading the fine print in everything, because the scam could be baked into hidden fees, unclear terms, and so on.
- Unsolicited contact: Out-of-the-blue messages from strangers should always be ignored, and you should seriously question messages from people you don’t usually talk to if you do know them. These will often include requests for help, so ensure you can verify the information you’re being given before considering any request. Additionally, legitimate companies will not send you unsolicited offers.
- Scare/pressure tactics: Scammers use social engineering to pressure you to act quickly and give immediate responses. They’ll do this often by using fear tactics, using language like "you must send money right away to prevent further action", “your account has been hacked,” “your identity is at risk,” or “act now to avoid losing this opportunity.” These tactics can sometimes be taken further with deepfake scams, too.
- Requests for payment via unconventional methods: Scammers usually ask for payment in gift cards, wire transfers, or crypto. When was the last time a company asked you to pay a balance in gift cards? Never. Don’t do it. Scammers do this because this method makes it harder for authorities to track them; they’re usually irreversible.
- Generic or unprofessional communication: Look out for emails, texts, messages that contain spelling mistakes, awkward language, or a generic greeting like "Dear Customer" instead of using your name.
- Unverifiable website or contact info: Scammers will give you info you can’t verify or a suspicious website. Keep an eye out for URLs with extra characters or misspellings. Steer clear from offers that don’t provide clear contact information or customer service details.
- TMI requests: Any request from an entity you don’t know asking for personal information, especially your social insurance number, should be treated as a scam. Don’t give out your SIN, bank account details, or passwords to anyone you don’t know, especially if it’s not relevant to the service being offered.
- Lack of testimony: The scammer might be unable to give you credible proof of their claims, like verified reviews, testimonials, or business licenses. If they can, watch out for overly positive reviews.
What to do if you’ve been scammed in Canada
If you’ve fallen victim to a scam, it’s important to act quickly to minimize the damage, increase the chances of recovering any lost money, and protect your personal information. Here’s a simple step-by-step guide to help you know what you have to do if you or a loved one has been scammed:
1. Take a deep breath, and stay calm
Being scammed online is often fixable. Scammers rely on you to panic and act impulsively, so take a step back to breathe. Once you’ve gathered yourself, save all the details related to the scam – emails, text messages, screenshots, payment receipts, bank statements, etc. Also, log the conversation with the scammer if you can.
2. Report the scam to local authorities
You’re going to need to report the scam. Below is a helpful list of all the authorities you can report a scam to. You will also want to contact your local authorities, any financial institutions that may be compromised, and the platform you experienced the scam on (Facebook, TikTok, BlueSky, etc).
3. Alert your bank or credit card company to the scam
Once you’ve made the call with your banks, you’re going to want to freeze any accounts that may be compromised. You may even want to go as far as canceling your cards or replacing them.
Take a look at your statements and dispute any fraudulent charges. If you’ve made a payment you do not recognize, request a chargeback or fraud investigation with your bank. Some banks may even offer protection services to help you get your money back.
4. Change your passwords, add 2FAs, and monitor your accounts
If you’ve shared personal or financial information, especially login details, immediately change your online account passwords. This includes your email, banking apps, social media, and other accounts where sensitive data is stored.
Some platforms offer a two-factor authentication (2FA) service. Enable them on any accounts you believe could be compromised. This is a great idea for all services you have going forward – always use 2FA when offered.
Continue to monitor your accounts and statements for any unauthorized transactions. You could consider setting up alerts to notify you of any unusual activity if you don’t already have them.
5. Alert credit bureaus about a possible identity theft
If you suspect your identity has been stolen, place a fraud alert on your credit report. You do this by contacting Equifax Canada or TransUnion Canada, and this makes it ten times harder for scammers to open accounts in your name. Click those links above to contact either credit bureau.
You should also request a credit report to check for any suspicious activity or new accounts opened in your name.
6. Recover your lost money (if possible)
Now that you’ve talked to some people, you will want to file chargeback requests as required. You can often do this online through your bank or credit company’s mobile app or contact them directly by phone (this tends to be the faster option). If you caught the scam quickly, this process should be relatively painless and most transactions should be reversible.
If you used a service like PayPal, eTransfer, or cryptocurrency, you’ll need to reach out to their support teams and explain the scam to them. They will be able to help you through their refund request forms.
Make sure you do this as soon as you can. The longer you wait, the less likely you’ll be able to recover your assets.
7. Watch for additional scams or attempts to exploit you
If a scammer pulled one over on you before, they’ll likely return for seconds. Be on the lookout for any follow-up scams – especially from people impersonating law enforcement, your bank, or any other recovery services, asking for additional payments or personal details.
As a rule, never trust anyone who contacts you out of the blue offering assistance with recovering your money. Keep a note of everyone you talked to – it’s helpful to write down names and agencies.
8. Keep a record of everything that happened
After all is said and done, keep a record of everything. You may need to recall at a later date all the actions you’ve taken to resolve the issue, including emails, phone calls, and reports filed with authorities or your bank/credit companies. Make sure you write down case numbers from police reports or fraud investigations, too.
9. Seek support and education from professionals
Being scammed can be overwhelming and stressful. It can help to reach out and talk to professionals like a counselor to help you navigate your feelings. Additionally, there are victim support services provided by the local authorities that can give you advice, resources, and emotional support as you recover.
Secondly, make sure you educate yourself. Learn about all the scams you can, not just the common ones, to protect yourself in the future. You can check out the Canadian Anti-Fraud Centre’s A-Z list of scams index for all the known scams.
How do I report online scams in Canada?
You can and should report a scam to several organizations in Canada. Here are the key ones:
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- Canadian Anti-Fraud Center (CAFC): This is the central agency in Canada that collects, analyzes, and disseminates information about fraud. They provide a reporting mechanism for victims of fraud and work to raise awareness. You can file online or call them at 1-888-495-8501.
- Competition Bureau Canada: This agency enforces Canada’s competition and consumer protection laws. They deal with deceptive marketing practices, false advertising, misleading promotions, and scams. You can file online or call them at 1-800-348-5358.
- Privacy Commissioner of Canada: If you believe your personal info has been stolen, the Privacy Commissioner is responsible for investigating compliance with privacy breaches and laws. You can contact the OPC directly or call them at 1-800-282-1376.
- Canadian Securities Administrators (CSA): This is an umbrella organization of securities regulators from all provinces and territories in Canada. Each province has its own securities regulator, and this agency can help you reach the branch you need here.
- National Cybercrime Coordination Unit (NC3): This is a specific law enforcement agency focused on cybercrimes like identity theft, hacking, and internet fraud. You can report cybercrimes directly on their website.
In addition to one or all of the above, you will want to contact your local authorities and the platform where you experienced the scam. You’ll also need to immediately contact your financial institutions, especially if the scam involves a financial transaction, and report it to any banks or credit bureaus to protect yourself.
FAQ
What are the most common types of online scams?
The most common online scams are phishing scams, which come in the form of emails, messages, and websites designed to trick you into providing your personal information (login credentials, credit card details).
How can I recognize a phishing email or message?
There are five red flags to a phishing scam: suspicious sender addresses (they look similar to a trustworthy source but are slightly misspelled), urgent language in the content, generic greetings (think "Dear User" or “Dear Customer”), suspicious links or attachments, and spelling/grammar errors.
What should I do if I think I’ve been scammed online?
Stop communicating with the scamming entity immediately and report it to the Canadian Anti-Fraud Center (CAFC) online or by calling them at 1-888-495-8501. They answer calls from Monday-Friday from 10 am to 4:45 pm EST. You’ll also want to contact any legitimate company involved and the authorities, protect your accounts, and warn your loved ones.
How can I protect myself from online scams?
The best ways to protect yourself include using strong passwords and enabling two-factor authentication. Be cautious of unsolicited emails or messages, and double-check website URLs (you really want to look for "https" and a padlock symbol when entering sensitive information).
Are online scams more common on social media?
Social media is a huge platform for scammers, who often create fake profiles or fake advertisements to target users - like phone giveaways, fake job offers, dating scams, and impersonation scams.
How do you know if you are chatting with a scammer?
This can be tricky, especially if they’re impersonating someone you don’t talk to often. However, you can tell they’re a scammer if they place some kind of urgency on their requests (like "this offer is only available for the next 24 hours"). They do this to prevent you from reasoning and to push you into a hasty decision. They may also ask for your social insurance number or credit card details.
What are the latest scams to be aware of?
In 2024, the most common and emerging scams to be aware of are AI-generated scams, or deepfake scams. These are scams that will use realistic video or audio clips of people (celebrities, family, friends) to trick victims into giving up money or personal information.
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