Top 4 Scams to Watch Out For

Grandparent Scams

The first common scam we are discussing today is the grandparent scam which attempts to exploit senior citizens.

A fraudster will call a grandparent and impersonate a family member of theirs, typically a grandchild. In these scenarios they fabricate an urgent situation, such as the grandchild being in trouble and needing money quickly. The fraud artist will request that the grandparent does not tell their parents about the problem. To pressure the grandparent into sending money without verifying information, the fraud artist will use emotional pleas, panic and urgency.

Cryptocurrency Scams

Cryptocurrency scams are the latest in ‘get rich quick’ schemes. They aim to exploit people by building fake investments in which the victim will transfer funds directly into the fraudsters pocket rather than to a legitimate investment portfolio.

The starting point for cryptocurrency scams is often on social media platforms or what appear to be legitimate websites with opportunities to make money quickly. The fraudster will converse with the victim before providing a link to their website, which seems legitimate. The victim will be prompted to make a profile for a crypto-investing platform and transfer funds into the platform. High pressure pitches and over-inflated funds encourage the victim to continue investing more. Sometimes the fraudster will even suggest the victim withdrawals or cashes out a small amount of funds. Once the victim sees they can easily withdrawal, they are hooked and continue to invest more and more money.

The platform will display over-inflated numbers, which is a notable red flag, however, once you are hooked it is difficult to notice the red flags. After the initial small withdrawal, the victim can no longer remove their funds. Once the victim becomes aware they have fallen victim to a scam, the scammers may contact them through an alternative method presenting themselves as specialists who can assist them in recovering their funds – for a fee of course.

Romance Scams

Romance scams commonly attempt to exploit individuals by developing a relationship with a person and then requesting money to help them with a need.

These scams typically begin through dating apps or social media platforms because the fraud artist can easily assume the identity of someone else. Once the fraudster feels they have built a relationship and gained your trust and affection, they will present you with a request for money for an urgent reason like medical expenses, family needs or travel.  It is becoming increasingly common for fraud artists to use a cryptocurrency platform to obtain funds through romance scams.

CRA Scams

CRA scams are a common threat that aim to exploit people by having them believe they are in trouble with the CRA and need to remedy an issue before it becomes a legal matter. In these scenarios the fraudster will pretend to be a legitimate government agency employee.

Fraud artists will initiate this scam through a phone call or email where they claim to be a Canada Revenue Agency or Service Canada employee. They may tell you that your SIN number has been compromised or you have an outstanding balance regarding your taxes. If you refuse to share your personal information with them or send them money, they may threaten that you will be arrested, fined and deported if you do not speak with them.