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Key takeaways:
Fraud isn't only common in Canada — it’s also costly. According to the Canadian Anti-Fraud Centre, Canadians lost more than $638 million to fraud in 2024, but only 5-10% of victims report fraud.1
Fraudsters target people of all ages, and anyone can fall for a scam. A recent Scotiabank survey found that nearly 9 in 10 Canadians have been targeted by fraud. Canadians aged 18-34 are the most likely to have fallen for a scam, while older adults are least likely to implement fraud prevention measures.2 As scams and technologies become more sophisticated, talking with your family members about fraud is more important than ever.
Read on for tips on speaking to your loved ones about protecting themselves and their finances, how to spot scams, and what to do when fraudsters take advantage of a family member.
There are many common scams but in general, scammers are looking for money or personal information. Be wary whenever anyone asks for either online, on social media, in text, on the phone or in person.
Although scams are constantly changing, watch out for this suspicious activity:
High-pressure tactics or an exaggerated sense of urgency might be a warning sign that something is off. Be suspicious of anyone pressuring you to make an immediate financial decision. Also look out for “time-limited” or “one-day-only” deals.
If it seems too good to be true, it likely is. Beware of promises of outstanding returns on investments, including cryptocurrency.
The offer of a prize, like a free trip or a cash bonus, should always raise an eyebrow. Fraudsters may entice you to send your personal information or even a small “shipping fee” to collect your winnings.
Treat any requests for money or personal information as a red flag, including from people claiming to be potential employers, government, a bank or a business. Some criminals pose as officials to intimidate people into sharing sensitive information. Similarly, treat unexpected links in emails or text communications as suspicious.
Requests for money from family members could be a potential scam. Some fraudsters impersonate family in text messages, emails and over the phone.
Open communication is the best way to start helping your loved ones. Here are some tips to help make this conversation easier and more effective:
- Take a non-judgmental, open and supportive approach: It’s important to remember that anyone can be taken in regardless of their age or how good they are with technology. Scammers are getting more sophisticated all the time. Reassure your loved ones that it’s about staying safe, not about mistrusting them, there’s no shame in asking for a second opinion if you’re unsure.
- Ditch the formality: A chat about fraud is more effective if you keep things casual. Introduce the topic frequently to normalize talking about it. If you have personal experiences with a scam, share what happened and how it made you feel. This will help create a safe space for your loved ones to share their stories and experiences without embarrassment.
- Role play scenarios: Make fraud prevention second nature by role-playing various scam scenarios in advance. For example, you could do a practice call your loved one and claim to be in distress. Work out how they might verify whether the call is legitimate and what they could do if it's not. Don't forget to also walk through regular prevention best practices like changing passwords, searching known scams at the Canadian Anti-Fraud Center (CAFC) site, and calling their bank or other institutions directly. For more ideas, check out the fraud simulation activities on Scotiabank's Cybersecurity and Fraud Hub to help guide your conversation.
A fraud awareness plan can help both you and your loved ones avoid scams. Practice the following safety tips as part of your fraud prevention routine:
- Set up secret codewords: Establish a codeword with your family and trusted friends. Pick a unique word or a phrase based on your shared experience and not readily available on social media. This code should not be shared with strangers. If you receive an unusual communication, you can use this to validate the legitimacy of the call or reach out to them through a different means of communication to confirm their identity.
- Slow down and verify: Many scams rely on pushing people to make snap decisions. Use your intuition — if something feels “off,” slow down and take the time to verify who you’re communicating with.
- Don’t share personal or sensitive information online: Beyond credit card numbers, birthdates and full names, be cautious when sharing less obvious data. Many people use their pet’s name in passwords, for instance, or their favorite sports teams.
- Protect devices: Use two-factor authentication on your accounts and strong passwords that blend letters and cases, numbers and special characters, preferably with a password manager. Install software to combat malware, spyware and viruses. Learn to report and block spam calls on cell phones and consider adding your phone number to the National Do Not Call List.3
- Update privacy settings in apps and online: Every social media account has privacy settings, which you can lock down to keep your information secure. Keep apps updated and review privacy settings to secure your cellphone, too.
- Get a second opinion on suspicious communications: Just because you receive a letter, text or phone call doesn’t mean you have to respond right away. (Or, at all.) Make a point of asking verification questions or have a family member take a second look before you respond.
- Monitor accounts: Review bills, financial statements and other accounts regularly to detect irregularities. If your loved one seems to be struggling with paperwork, offer to help with monthly bookkeeping and account review.
- Set up fraud alerts: Many financial institutions have tools to automatically inform you of suspicious activity on your accounts.
- Set up a trusted contact: A trusted contact person has the ability to speak with investment advisors about a loved one’s financial well-being without having any decision-making power.
- Take advantage of fraud-busting learning opportunities: Learn more on Scotiabank’s security hub, then practice your skills in the fraud simulations.
- Stay up-to-date on new scams: Scammers are far less likely to succeed when you're already aware of the scam. Add regular conversations about your latest security concerns to your family routine, just as you might share weather or traffic news.
If your loved one is scammed, there may be damage to more than their bank account. According to Psychology Today, they may also experience psychological trauma, including feelings of humiliation, shame, frustration and worry.4 Fraudsters often try to isolate their targets to increase their chances of success.
If you suspect a loved one has been scammed, approach them with kindness and empathy. Reassure them that there’s no shame in trusting other people and remind them that scams can happen to anyone.
Reporting if your loved one has been scammed is the only way to attempt to recover any losses. It also helps the authorities track down and apprehend scammers, preventing them from harming someone else. Here are the steps to helping your loved one report a victim of fraud:
- Document the incident: Compile any messages, receipts, or other proof.
- Inform financial institutions so they can secure accounts: This could include banks, investment brokerages or the CRA. If you are a Scotiabank customer, call us immediately at 1-866-625-0561.
- Report to the police: It's vital to document fraud. You’ll get a case number so you're able to follow up.
- Submit the case to the CAFC: You can use the Canadian Anti-Fraud Center’s fraud reporting system (CAFC) to report online or call 1-888-495-8501.
The bottom line
Talking about scams with your loved ones is the first step to ensuring everyone stays scam-savvy, but it’s important to keep the conversation going. Make a fraud awareness plan and stay up to date on the latest threats as part of your fraud prevention routine.
