In 2022, 90,137 incidents of fraud were reported, with 56,352 Canadian victims and a total loss of $530 million, according to the Canadian Anti-Fraud Centre (CAFC).
Each year, CAFC documents new frauds, trying to stay ahead of scammers who keep coming up with more innovative ways to victimize Canadians for their money.
This month, for example, a First Nations woman in Ontario said that she replied on social media to a Facebook video with celebrity renovation contractor Mike Holmes, asking for help to restore her 100-year-old farmhouse. She received a reply from someone claiming to be with HGTV, a TV network with home renovation shows, who asked for an application form, personal information, and a deposit for the repairs for participation in the show.
As the woman was using a loan from the Six Nations Housing department for her renovation budget, the scam became obvious quickly when officials tried to speak with the supposed HGTV contractor as part of the loan process.
Service scams, such as this one, cost Canadians nearly $20.6 million last year, with 6,255 reports of fraud of this nature and 4,536 victims, according to statistics provided to The Epoch Times by CAFC spokesperson Jeff Horncastle.
Not all scams are reported. The CAFC suggests that less than 5 percent of Canadian fraud and scam victims report the crime. The scams are always evolving with new versions of how they are carried out.
Investment Fraud
Investment fraud, from the cases reported, resulted in the highest dollar value loss for Canadians, at $308.6 million in 2022.
Various versions of investment fraud exist, but most attempts are coordinated and use stock market scams, “pump and dump” schemes (where promoters pump up a stock, boost demand, and then dump the stock for a fast profit), and cryptocurrency scams.
On Jan. 10, the British Columbia Securities Commission warned the public that scammers were posing as staff of the Canadian Securities Administrator, contacting investors and requesting money or payments related to fictitious enforcement actions or investigations.
Extortion, Sextortion
Extortion was the second-highest reported scam in 2022, victimizing more than 2,323 Canadians for more than $19 million.
On Jan. 15, in the most recent version of an extortion fraud, Ontario police warned that a scammer had targeted an individual with graphic text messages of dead bodies and body parts, threatening that if payment was not sent, the victim or family members would be harmed.
Sextortion scams also prompted a warning in 2022. According to the CAFC, “Scammers create fake profiles on social media and pornographic and dating websites.” They use the profiles to “lure” individuals into a relationship, and coerce them into performing sexual activities on camera. The scammer records it, then threatens to share it with other people unless they get paid, or get more similar explicit video footage.
Scammers also pretend to be an employee from the Canada Revenue Agency, pretending Canadians have a compromised SIN number, owe back taxes, have an unpaid balance, or are being investigated. The fraudster then demands money.
Real Estate Fraud
This month, multiple stories have emerged of real estate title fraud, where scammers gain access to a home and its land title record, list it for sale with a real estate agent, sell it, and vanish with the proceeds of the sale.
In dozens of cases now under investigation, thieves have impersonated legitimate property owners by using fake identification. According to investigators, con artists pose as homeowners, usually with homes that have low or no mortgages. The scammers obtain fake identification and pretend to be the homeowners to list the property and sell it. Some scams are so elaborate that actors are hired and paid to pretend to be the real homeowners.
Romance
Last year, more than 1,415 lonely Canadians were victimized by “romance” fraud for a total of over $59 million. According to CAFC, scammers use “advanced methods to appear legitimate and trick people into trusting them.”
These scammers commonly start an online, virtual relationship with someone using a fake profile, and then ask for money for travel or a medical emergency. In some cases, the fraudster asks to send money to an individual, sometimes for money laundering, or convinces the victim to take part in a business venture or investment opportunity.
The top scams based on a number of reports in 2022 were phishing, extortion, and personal information. With the personal info scam, fraudsters pretend to be from a utility company, bank, or government agency and want victims to verify and provide personal information.
The 2022 list of top ten scams included everything from service and investment schemes, to impersonating a bank investigator and counterfeit merchandise. On Oct. 18, 2022, the CAFC issued a new warning of scammers pretending to be CAFC employees, calling to “cancel a transaction” or transfer the call to a bank.
Individuals who receive such a call should always hang up and call back using an official number, suggests the CAFC.
In the merchandise scam, counterfeiters use websites that imitate legitimate manufacturers and sell inferior products, represented as brand name items, at large discounts. Counterfeit jackets, according to CAFC, “have been found to contain bacteria, fungus, and mildew.”
Other Scams
Service scams, according to a CAFC warning on Jan. 19, have a new variation. Fraudsters have been sending fake invoices to Canadians, saying their subscription for antivirus software, tech, or internet support has been renewed. Canadians are instructed to call to cancel service or resolve the issue, and the scammers then ask for “remote access” to the victim’s computer or device to try and steal personal or financial information.
Job scams were also in the top 10. Some of the more unusual frauds included convincing Canadians to wrap their vehicle with a “company” logo to earn $300 to $500 a week. Payment ends up being a counterfeit check. Once the victim deposits the check, they are told to withdraw or send some of the funds to pay a graphics company or other fees.
Also with job scams, con artists pretend to be hiring a caregiver, mystery shopper, data entry clerk, or administrative assistant. All the scams involve sending the victim a counterfeit check and tricking them into cashing it and returning some of the money to the scammer.
According to the CAFC, scammers in 2022 also posed as employers hiring a “financial agent” or “client manager.” Scammers hired individuals as a payment processor, required to receive money from company clients. The resultant e-transfers or wire transfers are then sent through Bitcoin to the “company.” Ultimately, the scam turns the victim into a money mule that “could be arrested for money laundering,” warns the CAFC.
As of Oct. 31, 2022, the CAFC website, which keeps a record of reported scams and frauds, indicated it had helped Canadians recover $2.4 million in funds lost from fraud.
Canadians are warned to protect themselves from scams and fraud by protecting their personal information, researching and verifying that an organization or individual is legitimate, and exercising caution when asked to pay upfront for a fee or purchase. Canadians are advised to protect explicit and personal images and personal computers, and carefully guard online accounts and passwords.
More tips are available on the CAFC website.
