There are always scammers in the woodworks, lurking among unsuspecting and particularly vulnerable Canadians who may not have their guard up or are a bit too trusting for their own good. And while there are seemingly endless scams out there, right now the most prevalent tend to involve online-based scams.
According to the Canadian Anti-Fraud Centre, 42,176 Canadians had been a victim of fraud in 2020 and had lost 106 million. Your best bet is to be armed with information about the existence of these scams and know what to watch for in order to protect yourself from being taken advantage of. That’s the purpose of this article, so be sure to heed this advice to avoid being another statistic.
According to the 2019 BBB Scam Tracker Risk Report, these are the biggest scams in Canada as of 2019.
Some scammers will advertise great deals on travel, luring people looking for a low price on a holiday. They may even advertise low prices on timeshare opportunities.
Victims may then may be asked to wire money to the “travel experts”, only to see their money gone without an actual vacation to enjoy. Or they may be asked to send money upfront to cover the cost of administrative fees.
In Canada, travel scams are quite popular. About 2.7% of people are exposed, and over 62% of those exposed to these scams lose approximately $5,000.
Advance fee loan scams often target people with bad credit or who are unable to get approved for a loan with a regular bank. These scammers typically advertise online or may even contact the target demographic via text, email or phone.
They will pose as lenders and tell the victims that they’ve been pre-approved for a loan, however, they will need to pay a “processing” or “administrative” or “application” fee first before the funds are advanced to them. Unfortunately, as a person with bad credit and limited choices, the deal may seem too good to pass up and end up paying the fee.
Once you pay, your money will disappear along with the scammer.
About 6.5% of people are exposed to advance fee loan scams, and 71.1% of them are susceptible to losing money. The median amount of money lost is $1,450.
Romance scammers make up fake profiles on dating sites and try to or contact people they’re targeting through their online profiles on social media. The goal is to develop a relationship of some sort so the victim eventually comes to trust the scammer and even fall in love with them.
The scammer will eventually convince the victim to send them money for various reasons, citing sob stories, such as family emergencies. They may even say they need the money to travel to where the victim is in order for them to meet, which never ends up happening.
About 1.9% of people are exposed to romance scams, and 48.2% of them lose a median of $4,000.
Jobs are typically advertised online, in newspapers, and even on the radio or TV. But in the midst of these legitimate job offers are scams. These people are targeting folks to steal their personal information and money after promising a job.
One way that these scammers funnel money away from unsuspecting job seekers is by forwarding a cheque with a major overpayment and ask that you pay back the excess money to them. Unfortunately, the cheque is fake, so you’ll be left with less money than when you first started. Other scammers may also claim that you need to pay them for a background check before they can hire you.
About 16.3% of people are exposed to employment scams, and 10.2% of them lose a median of $1,550.
Here Are Some Reputable Job Boards To Help You Find A Job
| Jobboom | Learn More |
| Monster | Learn More |
| Canadian Job Bank | Learn More |
| Jooble | Learn More |
| Indeed | Learn More |
| Learn More |
Some scammers look for ways to steal people’s money through cryptocurrency. These types of scams can take many forms.
For instance, you may be asked to pay for something upfront using cryptocurrency and never get your end of the bargain. You may also be lured into an attractive cryptocurrency investment, but wind up losing your crypto or even having cyber scammers hack your account.
Since cryptocurrency is exchanged directly between peers with no intermediary like a bank, there is no one to help if you have a problem. About 2.1% of people are exposed to cryptocurrency scams in Canada, and 48.3% of them are susceptible to losing money. The median amount of money lost through these scams is $3,617.
Online purchases continue to be a popular target for scammers looking to steal money from people. Scams under this umbrella are quite diverse and can include things like fake e-commerce websites, free trial scams, and counterfeit goods.
About 2.3% of people are exposed to online purchase scams, and 85.9% of them lose a median of $102.
If you’ve been a victim of any one of these scams, it’s important you take appropriate action to mitigate any further damage to your finances. Here are some steps you can take:
When it comes to your personal information and your money, always be extra protective. Don’t be too trusting of anyone, even if they seem legit at first. Always do as much homework as you can, and get up-to-speed on the types of scams that are being done.
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Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.
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