Frauds and Scams

By taking the following simple precautions, you can help protect yourself from this increasingly common type of fraud:

• Cover the keypad when entering your Personal Identification Number (PIN).

• Avoid using a password number linked to you such as your birthday or address.

• Never write your PIN on your card or on a piece of paper in your wallet. This makes it easy for criminals to access your information.

• Always shred personal information, including bank or credit card statements, receipts, insurance forms and/or physician statements

In this type of fraud, a seller posts an item(s) for sale online. A buyer contacts the seller and arrangements are made to purchase the product. The buyer then sends the seller a cashier’s cheque or money order for an amount greater than the price of the merchandise.

From here, the buyer directs the seller to cash the cheque and wire the excess funds to either the buyer or a third party. The seller, believing the cheque to be genuine, deposits it and then wires the amount of the overpayment as directed.

 It is usually after the funds have been wired that the cashier’s cheque or money order is returned as counterfeit.

The bank then holds the seller responsible for the fraudulent cheque, leaving the seller defrauded of both the money and the product.

• Be suspicious if the cheque amount you receive is greater than the agreed upon price of the merchandise you are selling.

• Current technology has improved the quality of counterfeit cheques and therefore makes them

difficult to detect. Be wary if the cheque is drawn from an out-of-country bank account.

• Never agree to accept a cheque for an inflated amount and to reimburse the balance.

• Never agree to wire bank funds to the buyer or forward the funds to a third party.

• Know who you are dealing with when conducting transactions over the Internet and confirm the personal information of the buyer.

• Do not succumb to any pressure at the hands of the buyer or feel you must complete a transaction

when you are not comfortable.

The primary thing to say to yourself when contacted by someone who tells you that you are the big winner or have the chance of a lifetime is: If it sounds too good to be true, chances are, it is.

If you have legitimately won a lottery, you will NEVER have to pay anything to receive your winnings. Be very cautious when being told you have won a contest you cannot recall entering. Your name may be on a list that has been sold.

Be very careful when someone offers you money to help transfer funds. Once you send money to someone, it can be very difficult - if not impossible - to get it back. Here are some examples of money transfer scams:

•In the classic Nigerian money transfer scam, you receive an email or letter asking your help to transfer a large sum of money overseas. 

• You are offered a share of the money if you agree to give them your bank account details to help facilitate the transfer.

• You will then be asked to pay numerous taxes and fees before receiving your ‘reward’.

• You will never be sent any of the money and will lose the fees you paid.

• A variation of this scam involves receipt of a letter from a lawyer or bank representative advising that a long-lost relative of yours has died and left you a sizable inheritance - the inheritance scam

• Scammers can tell such convincing stories that you can be tricked into providing personal documents and banking details to confirm your identity and claim your ‘inheritance’.

• Like the money transfer scam, the inheritance is likely to be non-existent and, in addition to losing any money sent to the scammer in fees and taxes, you risk having your identity stolen as well.

• If you or your business is selling products or services online or through newspaper classifieds, you may be targeted by an overpayment scam. 

•Here, you may receive a response to your ad with a generous offer from a potential buyer, which you accept.

•You receive payment by cheque or money order, but the amount is more than the agreed upon price.

•The ‘buyer’ may tell you that the overpayment was made in error or invent an excuse (e.g., the extra money was sent to cover delivery charges).

•Be suspicious if you are asked to refund the excess amount by money transfer.

•The scammer is hoping you will transfer the refund before you discover that the cheque or money order, they sent you was counterfeit.

•You will lose the transferred money as well as your item if you already sent it.

Covid-19 has made it easier for fraudsters to scam money out of those looking for rentals. Keep these tips in mind when looking to rent a new property:

1. Do not pay with cash. Never provide payment methods that are untraceable such as bitcoin, cash or wire transfer. They are impossible to track. Consider personal cheque, money order, bank draft, or certified cheque instead.
2. Never rent sight-unseen. Arrange to see the property in person when the landlord plans to attend. Ensure the property is the same as advertised online before signing a lease.
3. Meet the landlord face-to-face. Ensure you meet the landlord in person to confirm the rental is not a scam. If the landlord provides excuses to avoid meeting, be wary.
4. Do not provide confidential information such your Social Insurance Number (SIN) or bank information. This can be used for identity theft. A landlord can do a credit check with just your full name, current address and birth date.
5. Do your own research. Search the address of the unit and the landlord’s name, email, and phone number to confirm that the landlord/property management company exists. A landlord should never try to remain anonymous.
6. Be wary of low market rental rates. If the cost of rent seems too good to be true, it probably is. This should cause suspicion. Do not send money without doing your own thorough research.
7. Don’t make hasty decisions. Scammers use high-pressure tactics to get you to send money. This is a red flag. Take your time and do your research.
8. Speak with the current tenants. Connect with those who are currently in the unit to gain information about the rental and ensure the landlord is legitimate. This will highlight any inconsistencies and confirm if the information you have been provided from the landlord is true.
9. Be wary of landlords that request little to no information about you. To rent out a property, a landlord will ask for references and information to conduct a credit check.
10. Ensure a proper tenancy agreement is drafted and signed by both parties. This should include landlord information including the name and address and phone numbers. Also, ensure the agreement states utility information.
11. Property management companies pose less risk. While they may not be the best landlords, they are less likely to be scammers and have plenty of information and reviews available about them online for your research.

If you fall victim to or are aware of instances of rental fraud, call us to make a report. 

Canada Revenue Agency, or CRA, scams come in many forms. You may receive a threatening call, text, or email from someone claiming to be from the CRA. The scammer poses as an agent from the CRA and says you either are entitled to an extra refund and all you need to do is provide your banking details, OR you owe the CRA money and you need to pay it right away.

The CRA will never ask you to provide financial information via email/text/phone, use aggressive or threatening language, arrest you or send police, ask for payments via credit card/gift cards (such as iTunes), collect or distribute payments through interact e-transfer, Bitcoin, Western Union, Money Gram or use text messages to communicate under any circumstances. 

Phone scam

Phone scammers posing as CRA agents will claim one of several possibilities:

• you owe money to the CRA and will be arrested if you do not pay immediately
• a lawsuit has been filed against you by the CRA
• an arrest warrant has been issued for you
• you will be deported if you do not pay the money demanded
• other similar threats to get you to share your personal tax information and/or pay money

Email or text message scam

An e-mail or text message is sent from someone pretending to be with the CRA, claiming:

• your tax calculation has been completed, and you will receive a tax refund by clicking a link and submitting information
• you or your company is being accused of participating in tax-evasion schemes
• several discrepancies have been found with your filed taxes which need to be revised
• you've received an e-transfer from the CRA for what appears to be a tax refund
• an "investigation" has been started on your tax claim

These are fraudulent attempts to gather personal information such as your social insurance number, credit card or bank account information. Under no circumstances should you provide your personal information or click on any attachments or web links if you believe you have been targeted by this type of scam.

This type of fraud increases every year during tax season.

Tips to protect yourself:

• Hang up immediately or delete any texts/emails received and contact local authorities
• Do not click on any links provided
• The CRA’s accepted payment methods are: online banking, debit card and pre-authorized debit.
• If you receive a call saying you owe money, immediately hang up and call the CRA to check

For more info on CRA scams and how to recognize, reject and report visit the Anti-Fraud Centre website OR For more information on how to recognize and protect yourself from more types of scams visit the Canada Revenue Agency

When your credit card, credit card information or personal identification number (PIN) is stolen and used without your permission to make purchases or withdraw money from an ATM, you are the victim of credit card fraud.

Attempts to gain your personal information can be made by going through your garbage/mail, swiping your credit card through a device that copies its information, hacking into the computers of companies and stealing your information, installing devices on payment terminals that record your information, phishing, or using your credit card to make a purchase on an illegitimate website.

Tips to protect yourself:

• Always protect your credit card, PIN and personal information - cover the keypad with your hand or body when entering your PIN
• Create a PIN that is difficult to guess – avoid using numbers associated with your birthday, social insurance number, address, or telephone number
• Keep your credit card in a safe place; do not leave it in your vehicle
• Shred any credit card-related documents
• Only use secure websites when making online payments
• Keep your computer’s firewall up-to-date
• Do not give out your personal information by email or phone unless you are positive it is a legitimate company
• Report lost or stolen cards immediately
• Review your statement monthly and report any suspicious transactions immediately
• Utilize the contactless payment feature (Tap & Go) at point of sale terminals

For more in-depth information on credit card fraud, visit the Finanancial Consumer Agency of Canada OR the Canadian Anti-Fraud Centre for more information on how to recognize, reject and report fraud.

You may be targeted either by email or telephone by someone claiming to be a representative from Immigration, Refugees, and Citizenship Canada (IRCC) saying that you have done something wrong (i.e., failed to complete or register certain immigration documents) and owe fees. This scam is characterized by victims being told if they do not pay they will face deportation, loss of passport, and citizenship.    

Immigration, Refugees and Citizenship Canada (IRCC) will never

• Be aggressive/threaten to arrest or deport you
• Contact clients via the telephone for the purpose of collecting fines to avoid deportation
• Request payments be completed by pre-paid credit cards or through private money transfer services
• Ask you to pay fees using prepaid credit cards, Bitcoin, Western Union, Money Gram, gift cards, or any other similar services, or
• Send police to arrest you for unpaid fees

If you receive a suspicious immigration-related call, you should:

• Ask for the name of the person calling  and call the IRCC Client Support Call Centre to confirm the call was real (1.888.242.2100)
• Report the fraudulent call to Canadian Anti-Fraud Centre
• Report any lost money to police

For information on how to report these types of scams, visit Immigration and Citizenship Canada

Elder Safety is key. Always talk to seniors in your life about common scams and how to reject them.

If you or a loved one receive a call from someone claiming to be your grandchild, an old neighbour or a family friend and they need your help, you may have cause for concern.

In this scam, the person says they’re in some type of trouble – such as a car accidents, they’ve been arrested or are having trouble returning from a foreign country – and they need money. You may also be asked to keep it a secret as they are afraid of other people finding out.

There are often two people involved – one pretending to be the grandchild/old neighbour/family friend, and one pretending to be a police officer or lawyer. You will be asked questions in attempt to gather your personal information and requested to send a money transfer through a company such as Money Gram or Western Union to an unknown contact or to a foreign place.

Variations of this scam exist where someone poses as an old neighbour or friend, however, this type of scam is most often directed towards grandparents.

A typical call can start something like this:

Con-artist: Hi, Grandma/Grandpa.
Victim: Hi.
Con-artist: Do you know who this is?
Victim: John?
Con-artist: Yeah.

Tips to protect yourself:  

• Take time to verify the story.
• Hang up and call the someone who knows about the whereabouts of your grandchild
• Ask personal questions that only your loved one would be able to answer to verify identity before offering help
• Never give out any personal information to the caller
• Never send money to anyone you don’t know or trust

For more information on emergency scams, visit the Canadian Anti-Fraud Centre

A phishing fraud is a type of identity theft that fraudulently attempts to obtain sensitive information such as usernames, passwords, and credit card details via email, text, social media, and pop-up windows and is disguised as a trustworthy company or organization.

If you receive an unsolicited message that claims to be from a legitimate organization, such as financial institutions, businesses, or government agencies, be suspicious. You may be asked to provide or verify your personal or financial information either via email or by clicking on a web link. Once the scammers have collect your information, they can use it to con you out of your money.

Tips to protect yourself:

• Reputable organizations will never ask for your personal information through email
• Look for spelling or grammar mistakes
• Look to see if the colours, text, or format differ in any way from the legitimate website
• Ignore communications from unknown contacts
• Delete suspicious messages as they may carry viruses
• Don’t reply to spam messages, even to unsubscribe
• Don’t open any attachments or click on any links
• Hover your mouse over any link in the message to check if it has an accurate web address
• Update your anti-virus software on all devices
• Never use the contact information provided in the suspicious message when checking on the legitimacy of an email. Only use contact information listed on verified websites

If you have been a victim phishing fraud, contact local authorities as well as your financial institution and report it.

Visit the Canadian Anti-Fraud Centre for more information on how to recognize, reject and report fraud.

This type of scam often begins on social media or on an online dating site where fraudsters attempt to gain your trust and affection in order to convince you to hand over money or personal information. They will ask you to send money, claiming to have a very sick family member or that they’re in a desperate situation and they need your help. When someone you don’t know starts to confess their love for you, this should be your first warning sign.

The con artist will attempt gain a private form of communication from you such as text or email. A red flag should be if the person you’re talking to always has an excuse for why they can’t meet in person.

Tips to protect yourself:

• If you plan to meet up with this person, tell family and friends where you are going and meet in a local public place public
• Do not share personal or financial information with anyone you just met online or in person
• Never send intimate photos or videos of yourself as the scammer may use them as blackmail
• Never, under any circumstance, send money for any reason to a stranger or a foreign place
• Be cautious with people who claim to live close but are “working oversees”
• Do an image search, look for inconsistencies in their profile, and for poorly written/vague messages
• Gather all available information (scammer’s profile name, social media screenshots, dating site, emails etc.) to file a report with the Canadian Anti-Fraud Centre
• It’s very unlikely for someone to confess their undying love to anyone after only a few letters, emails, phone calls or photos

If you believe you have been scammed, report it to your financial institution immediately.

Visit the Canadian Anti-Fraud Centre for more information on how to recognize, reject and report fraud.

This type of scam is generally spread through phishing email that entice you to click on an attachment. If you open the attachment, the ransomware installs itself on your device and encrypt your files.

Generally, a pop-up will then advise you that payment is required to obtain a ‘private key,’ which if not paid, will result in the encrypted files being deleted. You are typically given 24-to-72 hours to pay before the private key is destroyed and your files are lost forever.

Payments is usually demanded in Bitcoin, UKash, Green Dog or another digital payment systems. Scammers claim paying the ransom will unlock the computer and enable the decrypting process, however, it is unknown if payments will result in obtaining the “key” or unlocked files.

Tips to protect yourself:

• Avoid opening email attachments from unknown sources, especially .zip files
• Ensure anti-virus software is active and up to date – schedule regular scans to search and remove already existing malware
• Keep your operating system and software up to date
• Make regular backups of important files
• Be vigilant against clicking on links or attachments within emails

For more information on ransomware scams visit the Canadian Anti-Fraud Centre

Identity theft occurs when scammers collect and/or replicate your personal information to commit fraud. Thieves can make purchases from your accounts, acquire passports, receive government benefits, apply for loans, and more. Your information can be stolen through your trash and mail, or through tactics such as spyware, viruses, hacking, and phishing.

Tips to protect yourself:

• Never provide your personal information over the phone, via text message, email or the internet.
• Regularly check your credit rating/reports – you are eligible for one free annual credit report from your financial institution.
• Avoid the use of public computers and Wi-Fi hotspots to access or provide personal information
• Create strong, unique passwords for each account and password protect your devices and home Wi-Fi.
• Only make payments online through a secure site – the web address will start with ‘https’ and a closed padlock symbol.
• Do not give out personal information on social media.
• Always shield your PIN when making purchases & never lose sight of your card.
• Shred and destroy documents with any personal information.

What Happens with Stolen Information?

Identity Takeovers: Someone appropriates your personal information without your knowledge.

Identification Factories: Places where thieves manipulate and alter real identification information.

Advances in computer technology and in photocopiers have made it easier for thieves to steal information and create identities, while making high-quality forged identifications harder to detect.

These factories create IDs, such as credit cards, driver’s licences and currency.

If Your Identity Is Stolen:

Notify your issuing authority immediately to have your document(s) cancelled and a new one(s)

issued

• Complete Ontario’s new standard “Identity Theft Statement” and send it to the credit issuers and

financial institutions you deal with

• Contact Canada’s two national credit reporting agencies:

• Trans Canada Union: 1-877-525-3823
• Equifax Canada: 1-800-465-7166

• Report the incident to the police

• You may be advised to report the incident to Canadian Anti-Fraud Centre: 1-888-495-8501

Tap & Go card fraud occurs when someone steals your bank or credit card any uses the ‘Tap & Go’ feature to make purchases.

This type of fraud is very common following vehicle break-and-enters because someone has left a credit or bank card in their vehicle,

Tips to protect yourself:

• Do not leave your Tap & Go card in your vehicle
• Always lock your vehicle
• Keep your card in your sight at all times when making purchases

Visit the Canadian Anti-Fraud Centre for more information on how to recognize, reject and report fraud.