The Canadian Securities Administrators (CSA), the Canadian Anti-Fraud Centre (CAFC) and the Royal Canadian Mounted Police (RCMP) have joined to issued a statement about the perils of financial fraud. While it is Fraud Prevention Month in Canada, consumers should always be aware of the various traps and scams that proliferate – mostly on the internet.
The Canadian Anti-Fraud Centre shares the top ten frauds of 2024:
| Fraud type | Reports | Victims | Dollar loss |
|---|---|---|---|
| Identity Fraudtable 1 footnote1 | 9,487 | 9,487 | N/A |
| Service | 5,049 | 3,831 | $19.8M |
| Investments | 4,076 | 3,866 | $310.6M |
| Extortion | 3,927 | 935 | $21M |
| Personal informationtable 1 footnote2 | 3,902 | 3,021 | N/A |
| Phishingtable 1 footnote3 | 3,390 | 989 | N/A |
| Merchandise | 3,225 | 2,734 | $9.1M |
| Bank investigator | 2,770 | 1,456 | $16.4M |
| Job | 2,649 | 2,179 | $47.1M |
| Counterfeit merchandise | 1,245 | 1,222 | $0.4M |
Other data regarding the illegal activities include:
- In 2024, Canadians reported losses exceeding $310 million to investment fraud.
- Over 4,000 investment fraud cases were reported to the CAFC in 2024.
- Spear phishing and romance scams, frequently used in online investment fraud, are among the top ten reported frauds by the CAFC in 2024.
- Twenty-three per cent of Canadians say they have been approached with a possible fraudulent investment; a five-point rise since 2020.
- Investment fraud incidence is trending upwards among Canadians aged 55 and under.
- There is an increase of fraud attempts targeting those with little to no savings, and those who are new to investing.
- Forty-six per cent of Canadians report encountering investment opportunities on social media.
- Thirty-four per cent of Canadians would report an investment fraud to the police/RCMP; eight per cent would go to their local securities commission/regulator.
In general, be skeptical of any pitch, solicitation are attempt to provide investment advice. Obviously, if it sounds too good to be true, it probably is. And do not click on any text or email that is requesting some sort of action. Just do not do it unless you are absolutely certain it is verifiable.