Every day, scammers devise new tactics to defraud Canadians out of their savings and retirement funds through deceptive and often hard-to-detect schemes. Many of these incidents go unreported, so the full extent of the financial losses remains unclear. However, the Canadian Anti-Fraud Center (CAFC) reported that in 2022, Canadians lost $530 million to fraud and cybercrimes—with a significant portion of this targeting elderly individuals.
So, why are seniors often the focus of financial scams? While people of all ages can fall victim to fraud, elderly Canadians are particularly targeted because scammers perceive them to have more accessible wealth, be more trusting, and often less familiar with online risks. Knowledge and vigilance are your best defenses. In this article, we’ll examine some of the latest scams targeting the elderly, including the CRA scam, predatory lending, debit card scams, and Amazon phishing emails. We’ll also outline red flags to watch for and ways to protect yourself and others from elder financial scams.
Carbon Tax Rebate Scam
This scam, which began appearing in 2024, specifically targets the elderly. Victims receive a text message, allegedly from the Canada Revenue Agency (CRA), offering the Canada Carbon Tax Rebate, complete with a link to claim the payment. When the link is clicked, victims are prompted to provide personal information, which the scammers then use to commit fraud. The CRA has made it clear that they will never send links to receive payments via text or email. If you receive such messages, do not respond or click the link.
CRA Scam Alerts
The CRA text or voicemail scam has been around for some time and remains one of the most aggressive scams targeting seniors. Victims receive a message claiming they owe the CRA a large sum of money and are threatened with arrest if they don’t pay immediately. These calls or voicemails are often very intimidating, threatening legal consequences like deportation, asset liens, and frozen bank accounts. Scammers demand payment via e-transfer, gift cards, or even Bitcoin, sometimes asking for credit card information and PINs. The CRA has reiterated that it will never request payment through these means, and you should hang up if you receive such a call.
Debit Card Scams
These scams are particularly convincing because the scammers often share personal details to gain the victim’s trust. Typically, the victim receives a text message about supposed fraudulent activity on their bank account, which may even list recent transactions. The scammers then ask for the victim’s PIN and instruct them to leave their debit card in the mailbox, promising to deliver a new one. Scammers pick up the card and use it to withdraw funds, often in significant amounts. If you receive such a message, do not respond to it. Instead, call your bank using the number on the back of your debit card to verify any suspicious activity.
Amazon Phishing Email Scam in Canada
This scam is particularly effective because it plays on the widespread use of Amazon. There are two primary versions: the fake order issue and the fake account issue. In both cases, victims receive a message, either by text, email, or phone, about unauthorized activity on their Amazon account. Scammers then ask for personal and account information, which they use for identity theft. To protect yourself, always verify your orders through Amazon’s website or app and contact their customer service directly if something seems suspicious.
Latest Phishing Text Messages and Emails
Phishing scams often claim to be from reputable organizations like banks. Scammers aim to collect personal and financial information from victims by tricking them into clicking links or downloading attachments, which can install spyware or malware. This scam is especially dangerous for seniors who may unknowingly give access to their bank accounts. To avoid these scams, never click on links or download attachments from unsolicited emails or texts, and always verify any urgent claims by contacting the company directly.
Tech Support Scams
One of the more costly scams, tech support fraud often targets the elderly due to the perception that they are less tech-savvy. Victims see a pop-up message on their computer or phone warning of a supposed virus or issue and are directed to call a number for “help.” The scammers then demand payment for their service or request remote access to the victim’s device, through which they access their bank accounts. Some elderly victims have lost hundreds of thousands of dollars to this scam.
Investment Scams
These scams exploit the trust that seniors place in supposed financial advisors, who offer fraudulent investment opportunities. Scammers call unexpectedly, presenting high-return, low-risk investments that don’t actually exist. They pocket the money, and their victims, often seniors, lose tens of thousands of dollars. This type of fraud can also be considered financial abuse.
How to Avoid Scams in Canada
Scammers are targeting Canadians in increasing numbers every year. The best way to protect yourself and your loved ones is through education and awareness. You can safeguard those around you by providing them with a checklist of what to do when faced with an unexpected situation:
- Hang up on unfamiliar callers and ignore aggressive voicemails claiming to be from the CRA.
- Never click on links or download attachments from emails or texts you weren’t expecting.
- Don’t sign anything without consulting a trusted friend or family member.
- Never share your PIN, passwords, or banking information with anyone.
- Never leave your credit or debit cards in the mailbox, and contact your bank directly if you suspect fraud.
Reporting Financial Scams
If you think you’ve been targeted by a scam, contact the Canadian Anti-Fraud Centre at 1-888-495-8501 or report the incident through their fraud reporting system. You can also report online scams to the Canadian Centre for Cyber Security. If you believe a scam poses an immediate threat to someone’s safety or finances, contact your local police department.
By chip.ca
(used with permission)
