Rising Scam Wave: How to Protect Your Money from Sophisticated Fraudsters

Rising Scam Wave: How to Protect Your Money from Sophisticated Fraudsters

Key impact: Canadians are losing thousands of dollars to increasingly convincing scams that mimic legitimate bank calls. If you answer your phone, you could be the next target.

A recent investigation by The Globe and Mail reveals that scammers are using advanced tactics, including artificial intelligence and phone number spoofing, to trick Canadians into handing over their money. In one case, a couple lost nearly $14,000 after a caller impersonated TD Visa and convinced them to hand over their cards.

The numbers are staggering. The Canadian Anti-Fraud Centre reported over $704 million in losses in 2024, up from $645 million in 2023. But experts say this represents only 5-10% of actual fraud because most cases go unreported.

Who is affected

These scams target all Canadians, but some groups are more vulnerable:

• Seniors who may be less familiar with digital security
• People who trust caller ID — scammers can now fake any phone number
• Anyone who receives an unexpected call from someone claiming to be their bank

Victims often face more than just financial loss. Bob McArthur, a fraud victim, suffered severe vertigo attacks after the scam. The emotional and physical stress can be devastating.

How the scams work

Scammers use two main tactics:

1. Phone number spoofing — Your caller ID shows your bank's real number
2. AI voice cloning — They can mimic a family member's voice or a bank employee

The caller will sound professional and urgent. They might say your account has been compromised and you need to "verify" your information. Once you share your card number, PIN, or one-time code, your money is gone.

What banks will and won't do

Banks may refuse to cover losses if you willingly shared your information. Even if the scam was convincing, you could be left to bear the full cost. This is why prevention is critical.

What you should do

Follow these steps to protect yourself:

1. Never share personal or banking information over the phone — No legitimate bank will ask for your PIN, password, or one-time code by phone.

2. Hang up immediately — If someone calls claiming to be your bank, end the call.

3. Call your bank directly — Use the number on the back of your card, not the one the caller gave you.

4. Report suspicious activity — Contact the Canadian Anti-Fraud Centre at 1-888-495-8501 and your bank right away.

5. Warn vulnerable family members — Talk to elderly relatives or anyone who might not recognize these tactics.

6. Stay informed — Scammers constantly update their methods. Check the Canadian Anti-Fraud Centre website for current alerts.

Bottom line

Scammers are using AI and spoofing to make their calls look real. If you get an unexpected call from your "bank," hang up. Call your bank using the number on your card. Never share personal information over the phone. Your money and your peace of mind depend on it.

Source: The Globe and Mail investigation on rising scam tactics in Canada