1-800-GOT-SCAM
This article is the first in a series of four.
by Nikita Mohile
"Congratulations! You've won a grand prize of $100,000! To claim it, simply reply and pay a small processing fee."
If you think a text like that seems too good to be true, you're right. This is a common example of a prize scam, a type of fraud designed to lure people into sharing personal or financial information in order to win a prize. And it’s just one of many scams out there. In 2024, the Canadian Anti-Fraud Centre (CAFC) estimated that Canadians lost $648 million to fraud. That figure accounts for only the five to 10 percent of fraud cases that are actually reported.
“There has been a large increase in reported dollar loss every year," says Jeff Horncastle, outreach officer with the CAFC. "We have to assume that fraud is increasing."
Among the many types of fraud, identity fraud is the most common. This occurs when someone uses another person's information to open bank accounts, apply for credit cards, or obtain government identification.
"As soon as your personal information is out there, you've been a victim of identity theft," says Horncastle.
Many fraud attempts happen over the phone, by call, text (smishing), or email (phishing). Some of the most frequent phone scams include impersonation scams, emergency scams, and romance scams. In impersonation scams, the caller pretends to be from the RCMP or the CRA, claiming that there is a warrant for arrest that can be resolved only by paying a fee. In emergency scams, the fraudster may claim to have kidnapped a child or grandchild and demand a ransom. Others may pose as a friend or family member in crisis and ask for money to be sent immediately. Romance scams rely on building a personal relationship before requesting financial help, often with promises of repayment.
“If you have been scammed, no matter how big or small the loss, it’s important to come forward and report incidents, without having a fear of judgement. ”
Other types of scams include charity scams, old-age pension scams, "can you hear me?" scams, or one-ring scams.
Scammers also take advantage of advancing technology, which makes fraud a lot easier. Some use AI deepfakes to generate a familiar voice, and others use spoofing, a technique that alters the caller ID to make it appear as though the call is coming from a trusted source.
Most scams have similar warning signs. Scammers typically ask for personal and financial information over the phone, like tax documents, or bank names and locations. While posing as a trustworthy figure, they will pressure the victim to act quickly, either by offering a limited-time opportunity or by making threats. They also use aggressive language and ask for payment in ways that make it difficult to recover the money, such as through cryptocurrency, payment apps, or wire transfers.
Anyone can be a victim of fraud. To stay safe, avoid giving out personal information, clicking links, or replying to unfamiliar numbers. If your instinct is that something is off, "get the caller's information, go find the official phone number, and make the outgoing phone call," says Horncastle, and "never feel rushed."
If you have been scammed, no matter how big or small the loss, Horncastle says it's important to "come forward and report incidents, without having a fear of judgement."
Report incidents to Durham Regional Police at drps.ca and the Canadian Anti-Fraud Centre at antifraudcentre.ca or 1-888-495-8501. The CAFC uses these reports to assist investigations across the country.
The next articles in this series will cover banking, social media, and cyber scams. Stay tuned!