Charity scams take advantage of people’s generosity and kindness by asking for donations to either a fake charity or impersonating a real charity.

Scammers collect money by pretending to be a real charity and will approach you on the street, at your home, over the phone, or on the internet. The scammer may exploit a recent natural disaster that has been in the news, or will play on your emotions by pretending to be from charities that help sick children.

All registered charities in Canada are overseen by the https://www.canada.ca/en/revenue-agency.html and are listed in their database.

HOW TO PROTECT YOURSELF:  

• If you have any doubts at all about the person asking for money, do not give them cash, credit card or bank account details
• Never give out your personal information, credit card number or online bank account details over the telephone unless you made the telephone call or the telephone number came from a trusted source
• Search the Canada Revenue Agency database to check the charity is legitimate

Cryptocurrency is a digital currency, created using encryption algorithms. You need a cryptocurrency wallet to use cryptocurrencies. Cryptocurrencies are legal in Canada, but it is not considered legal tender. Businesses can choose to accept cryptocurrency at their own risk. In Ontario, the Ontario Securities Commission (OSC) is an independent Crown corporation that regulates Ontario’s capital markets. The OSC administers and enforces compliance with the provision of Ontario Securities Act and Commodity Futures Act.

All cryptocurrency asset-trading platforms registered in Ontario are listed on the Registered Crypto Asset Trading Platforms page on the OSC’s website.

New cryptocurrencies are launched through Initial Coin Offerings (ICO). ICOs can be harnessed as pump and dump scams. A fraudster may seeking to raise money by promising a new coin/crypto platform will generate huge returns, and then disappears with investors’ funds by selling all the tokens at once. Often cryptocurrency developers will pay famous actors or internet personalities to promote a coin or platform to attract investors. Those committing frauds may use fake images, videos or websites to claim that public figures have endorsed their scheme.

Get your cryptocurrency from well known and reputable exchanges. Purchase any hardware wallets directly from the manufacturer. 

HOW TO PROTECT YOURSELF: 

• Investors are encouraged to check the registration of any person or business trying to sell cryptocurrency or offer cryptocurrency investment advice 
• In Ontario, visit the “Check Before You Invest” page on the OSC website
• Be wary of any individual or company that only takes cryptocurrency as a form of payment 
• Always keep your personal and banking information and digital wallet safe 
• Use multi-factor authentication

Dating and romance scams will try to lower your guard by appealing to your romantic and compassionate nature. One common example of this fraud will start on a legitimate dating website where the scammer will build a relationship with you over a few emails or messages and eventually will share a story about a sick family member or a story of despair. They will ask you for money to help them with their situation either directly or in a subtle way. Once they get what they want, they disappear.

In other cases, you will be lured with gifts or flowers. The scammer will tell you about money they want to share with you, or they need to transfer out of their country. In order to make the transfer happen, the scammer will ask for your banking details, money for an administrative fee, or claim that need paid to free up the money.

HOW TO RECOGNIZE:

• A person you recently started talking to needs money
• The person disappears after you gave them money
• The person is luring you with gifts and flowers
• The scammer wants to share money with you
• The scammer wants to transfer money out of their country and will asks for your banking information, money for an administrative fee or they need paid to free up the money first

HOW TO PROTECT YOURSELF: 

• Never send money or give financial details
• Only use legitimate and reputable dating sites
• Check website addresses carefully as scammers often mimic real web addresses
• When you are chatting in an online dating site do not give out any personal information
• ASK YOURSELF: Would someone I have NEVER met really declare their love for me after only a few letters or emails?

Employment and job scams target people looking for a job. The scammers often promise a high income, and sometimes they even guarantee it for little or no effort.

You might get an email with a job offer where you use your bank account to receive and pass on payments for a foreign company.  Alternatively, you might be offered a job as a “secret shopper” hired to test the services of a cheques cashing or a money transfer company. Some “job offers” promise that you will receive a percentage commission for each payment you pass on. Sometimes, scammers only want your bank account details to access your account. They might also send you counterfeit cheques along with instructions for you to cash the cheques and transfer a portion of the sum over a money transfer service.

WORK-FROM-HOME scams are often promoted through spam emails or in online or newspaper advertisements.

• Most of these advertisements are not real job offers.
• Many of them are fronts for illegal money-laundering activities or pyramid schemes.

GUARANTEED EMPLOYMENT or INCOME scam claims to guarantee you a job or a certain level of income.

• The scammer usually contacts you by a spam email
• The job offer or income often involves paying an up-front fee for a “business plan,” certain start-up materials or software

Is a range of scams promoted as BUSINESS OPPORTUNITIES.

• You may be required to make an upfront payment for something that does not work, or is not what you expected, or to recruit other people to the scheme.

HOW TO PROTECT YOURSELF:

• Never send your bank account or credit card details to anybody you do not know and trust
• If you cash the cheque and it turns out to be counterfeit, you could be held accountable for the entire monetary loss by your bank
• Do not make any decisions without carefully researching the offer 
• Seek independent advice before making a decision
• Ask Yourself: did I get all the details in writing before paying or signing anything?

The grandparent scam often targets seniors. The person will receive an unexpected telephone call from someone claiming to be a relative, usually a grandchild, niece or nephew. The caller will usually sound upset because of an emergency and ask that you send money immediately. 

Some of the false emergencies include:

• The person calling has been arrested
• They were in a car accident
• They are stuck in foreign country
• They are in a hospital

Sometimes two people will be on the telephone call. One person pretends to be the relative in an emergency needing money and the other person pretends to be a police officer or lawyer.

The telephone call may sound like this:

Caller: “Hi, Grandma/Grandpa.” 

Senior: “Hi.”

Caller: “Do you know who this is?” 

It is at this point the senior will say a name, which is usually the name of a relative. Sometimes the caller sounds a lot like the relative or grandchild. The caller will then use the name provided to pretend to be that person.

The caller will ask the senior to pay a bond or a bill, with either cash or a wire transfer immediately. That is a key indicator – immediately and urgently. The caller will always tell the senior not to tell anyone, especially family members and bank employees. This should be an automatic red flag. If the caller says there is a “legal gag order” they are lying because it is part of the scam.

Many victims of this scam will go to the closest bank or financial service business to get cash or send a wire transfer. Sometimes the victims are coached about what to say to bank tellers and bank managers in case they are asked about the reason for the withdrawal or transfer. In some cases, a person will show up at the victim’s residence pretending to be a police officer or a courier to take the cash.

Identity theft happens when someone has taken possession of your bank account, credit card, driver’s licence, social insurance number, or other personal information. Once an identity has been stolen in this manner, the scammer can cause a lot of harm and damage that will leave you with financial, legal and psychological costs.

With your identity, a scammer can open new bank accounts, purchase cellphones, take out a mortgage, apply for loans and credit cards, make purchases, obtain passports and receive government benefits.

HOW TO RECOGNIZE:

• Purchases not made by you appear on your monthly bills
• Bills arrive on accounts you do not own
• You receive calls from a collection agency about unknown debt
• Credit card and/or bank statements do not arrive
• Your credit report shows mystery debts

HOW TO PROTECT YOURSELF: 

• If any documents are lost or stolen, IMMEDIATELY notify the issuer and the police 
• Shred all sensitive documents with your personal information before throwing it into the garbage
• Always protect your bankcard and credit card PIN and never give it to anyone
• Change all of your passwords 
• Only carry documents you absolutely need
• Never give personal information over the phone, internet or mail unless you initiate the contact 
• Place alert flags on your accounts
• Report the fraud to Equifax and TransUnion credit bureaus.

Many internet scams happen without the victim noticing. Scammers can use the internet to promote fraud through unsolicited or junk emails, known as spam.

It is likely a spam email if it comes from a sender you do not know, is not specifically addressed to you, and promises you some benefit.

PHISHING scams trick you into providing personal and banking information to scammers.

• Phishing emails can carry viruses that can infect your computer
• Do not open any attachments or follow any links in phishing emails
• The emails you receive might look and seem legitimate, but scammers can easily copy a logo or an entire website of a legitimate organization
• Delete phishing emails

MALICIOUS software, also referred to as malware, spyware, key loggers, Trojan horses, or Trojans, pose online security threats. 

• Scammers try to install this software on your computer to gain access to files on your computer and other personal details and passwords.
• They may trick you into clicking on a link or pop-up message in a spam email.
• They may get you to visit a fake website set up just to infect computers.

RANSOMWARE is a type of malware that prevents you from accessing your device, and the data stored on it. 

• The scammer will encrypt your files unless you pay the demand.
• The scammer will lock your device, encrypt, steal or delete information until payment is made.

ANTI-VIRUS SCAM is an offer to repair your computer over the internet.

• A scammer will pretend to work for a legitimate company and tell you that your computer is having issues and needs repaired.
• The scammer will ask for remote access to your computer and will be able to access your files and information.
• Or they will need payment to install software.

HOW TO PROTECT YOURSELF: 

• Do not reply to spam emails
• Do not click on a link or call a telephone number listed in a spam email
• Check the contact details provided in the email are correct
• Call your bank or financial institution to ask whether the email you received is genuine
• Install current anti-virus software
• Get advice from a computer specialist 
• Allowing a third party to download software or remotely access your computer carries risks. Malicious software can be installed to capture sensitive data such as user names and passwords for online banking, bank account information, and identity information.
• Ask yourself: by opening this email, will I risk the security of my computer?

The fraudster in a lottery scam or a fake prize scam will contact you by telephone, email, text, or a pop-up on your computer claiming  you won a prize or a contest. To claim your prize you will be asked to pay a fee, or if you do receive a prize it may different than what was promised to you. 

Many scammers will tell you the offer is legal or it has government approval. Lottery scams may trick you into providing your banking information and personal details to claim your prize. 

Remember that you cannot win money or a prize in a lottery unless you have entered it yourself, or someone else has entered it on your behalf. You cannot be chosen as a random winner if you do not have an entry.

HOW TO RECOGNIZE:

• You did not enter a contest or a lottery
• You are asked to pay a fee to claim a prize
• The prize you received is not what was promised to you
• You are asked to provide personal or banking information to claim a prize

HOW TO PROTECT YOURSELF:

• Legitimate lotteries do not require you to pay a fee or tax to collect winnings
• Never send money to anybody you do not know and trust
• Research the company claiming you won the prize

Pyramid schemes promise a large financial return for a relatively small cost and are cleverly disguised. Pyramid schemes make money by recruiting people rather than by selling a legitimate product or providing a service. Many pyramid schemes collapse and you will lose your money. 

In a typical pyramid scheme, investors are encouraged to pay expensive membership fees to participate in moneymaking ventures. As the investor, you will need to convince other people to join and invest in the moneymaking venture in order to recover the money you invested. People are often persuaded to join by family members or friends. There is no guarantee that you will recoup your initial investment.

Pyramid schemes are illegal and very risky. It is a criminal offence to establish, operate, advertise, or promote a scheme of pyramid selling in Canada.

HOW TO RECOGNIZE:

• Someone you know wants you to join
• The membership fees are expensive with a large amount of money
• You are told you will make money from your investment

HOW TO PROTECT YOURSELF:

• Never commit to anything at high-pressure meetings or seminars
• Do not make any decisions without doing research
• Research the offer being made and seek independent advice before making a decision

Door-to-door salespeople may use high-pressure tactics to convince you to buy a product or sign up for a service you do not want or need. The door-to-door sales scammer will come to your home claiming to be in the neighbourhood and offer a “discount, but today only.” The person appears friendly and knowledgeable and will offer you a service regardless if you need it.

Often targeting seniors, the scammer convinces the person they need something (for example, a paved driveway or a new roof). The salesperson will charge more than fair market prices, and often take a large deposit. Sometimes they will never do the work or only partially complete it.

These aggressive pitches are also used for charitable donations, investment opportunities and maintenance for various appliances, like water heaters, furnaces, and air conditioners. In many cases you will never receive the product or service promised. In others, the products or services are of poor quality or not as represented.

HOW TO RECOGNIZE: 

• A door-to-door salesperson will use agressive or high-pressure tactics to buy a product or service
• The person will over you a "today only" discount
• The salesperson is charging above fair market prices
• The salesperson may take a large deposit
• The work is never completed or only partially finished
• The product or service is of low quality or not as represented in their sales pitch

HOW TO PROTECT YOURSELF: 

• Do not sign anything
• Always read the fine print 
• Do not feel pressured to make a quick decision 
• Take time to do some research on the seller and the products  
• Ask for photo identification and get the name of the person, and the company or charity they represent
• Never share personal information, copies of bills or financial statements 
• Know your rights. Contact your local Consumer Affairs Office. Most provinces and territories have legislated guidelines protecting consumers

Rental scams for apartments, condos and houses often happen online. You find a perfect rental online with pictures and descriptions of every room at a reasonable cost. The property owner replies to your email immediately, and inform you they are out of the country and can't show you the property. Sight unseen, the property owner wants you to wire the security deposit and first month's rent and the property owner will send you the keys right away.

Scammers will post listings for properties they do not own. A scammer will create a fake listing by copying the information of a legitimate listing and significantly lower the listing price to attract renters. To make the listing look real, sometimes the scammer will create a fake email address using a real estate agent’s name from an agency website.

If you are a victim of a rental scam, contact your financial institution as soon as possible, depending on how you made payment. If the cheque has not cleared, contact your financial institution to cancel the payment. Report the incident to your local police service.

HOW TO RECOGNIZE:

• The property owner is out of the country
• You have never seen the property in person, but you are the successful applicant
• The property owner wants you to wire money

HOW TO PROTECT YOURSELF:

• Avoid property owners who do not agree to a personal meeting or who have an issue with meeting you in person
• Do not sign anything before you visit the property in person
• Beware of listings that have little information, low-quality pictures, or no pictures at all. Pay attention to the grammar and format that is used
• Never make an advance payment. Legally, property owners can only ask for rent deposits and a refundable key deposit at the time of signing the rental agreement  
• Application fees, holding fees, damage or security deposits, cleaning fees, or pet deposits are not legal
• A standard lease in Ontario creates a contract between the property owner and tenant. The contract should state the  property owner, the amount you should pay for rent, and the expectation of you as a tenant
• Scammers may upload pictures of a different property to trick renters. If the property looks like a really good deal, chances are it is not. Some listings may be too cheap for what is offered in comparison to other options with similar properties
• Always research the property address and available online pictures as a start to your review process
• Hold back from providing personal information. To view a rental property in Ontario the property owner has a right to ask for a valid government-issued identification. No further personal information should be requested by your property manager before things are made official

Subscriber Identity Module (SIM) card swapping, also called SIM jacking or SIM hijacking, is a form of identity theft where someone steals your mobile telephone number by assigning it to a new SIM card. They can insert the new SIM into a different phone to access your accounts. SIM card swapping is another way to lose your phone, but it doesn't leave your pocket.

The SIM card swapping scam starts with a person contacting your mobile carrier impersonating you. They claim they have a new SIM card to activate on your account. The fraudster might say the original phone and SIM card were lost, destroyed or sold and the SIM card was accidentally left in the phone.

The mobile carrier will likely request some identity verification, such as the account PIN, security questions, or the last four digits of your social security number. Once the scammer persuades the mobile carrier’s representative that they are you, the scammer will get your phone number reassigned to their personal SIM card.

Now the scammer has disconnected your phone number from your cellphone and assigned your phone number to their SIM card in their cellphone. The scammer can reset your account passwords and take control of any two-factor authentication that goes to your phone via text message. They can access many of your personal accounts and bank accounts, email, digital payment systems, social media, shopping, and more.

If you have been a victim of a SIM card swap, contact your mobile carrier immediately.

HOW TO RECOGNIZE:

• You are no longer receiving text messages
• Phone calls may not work
• You might start receiving emails about account changes if your phone is connected to WiFi
• Your social media accounts have been hacked
• Unauthorized bank activity is happening

HOW TO PROTECT YOUSELF:

• Set up a PIN with your mobile carrier that only you know. Your mobile carrier will ask for the PIN before making any changes
• Reset the PIN on your mobile account. Select a strong, complex PIN that only you will know. Do not use numbers like your address, birthdays or social insurance number
• Set your online profiles to be more private
• Consider using a two-factor authentication that does not use SMS or texting

Have you received a telephone call, email or text claiming it is from the Canada Revenue Agency (CRA)?

Scammers target individuals by telephone, email or text claiming the CRA is sending a tax refund, GST/HST credit but need personal information to proceed. Scammers ask individuals to reply to the email or text, or click on a link to complete an application form to receive their refund or credit by an urgent deadline.

The CRA will not use text messages to start a conversation with you about your taxes, benefits, or My Account.

Government agencies, police officers and reputable companies will never demand payment with gift cards.

If someone is telling you to make a payment with gift cards, hang up the phone or delete the email. If you doubt the telephone call or email is legitimate, contact the company directly. Do not call the number given to you on a voice message – search for the telephone number yourself to call. If you receive an email, do not respond to it or click any links inside the email.

HOW TO RECOGNIZE:

• The CRA contacted you in a text
• The CRA asked you to reply to the email or text
• The CRA asked you to click on a link to complete an application form to receive a refund or credit
• The refund or credit has an urgent deadline
• The CRA asked you to pay with a gift card
• You were threatened with arrest, the police will attend your home, or other legal action

HOW TO PROTECT YOURSELF:

The Canada Revenue Agency (CRA) follow certain procedures and it will never:

• Use text messages to contact you or communicate
• Threaten you with arrest
• Threaten to send the police
• Use aggressive or threatening language 
• Ask for payment with gift cards (iTunes, Apple or Home Depot gift cards), Bitcoin, or any cryptocurrency or prepaid credit cards
• Request e-transfers of any kind

Emails from CRA:

• Never ask for financial information
• Never provide financial information

The CRA’s accepted payment methods are:

• Online banking
• Debit card
• Pre-authorized debit

Two scammers are involved in the taxi scam and it is designed to have an unsuspecting person help someone in need.

One person poses as the driver of a fake taxi and the second person pretends to be a passenger in need of help.

The fake passenger approaches you claiming the (fake) taxi driver will not accept cash as payment for their fare. The fake passenger asks you to pay the fare using your own debit or credit card and will offer to reimburse you in cash. 

You give your debit or credit card to the fake taxi driver who will then insert the card into a modified point-of-sale terminal to pay the fare and the machine records the PIN. At the same time, the fake taxi driver swaps your debit or credit card with a fake one, which is returned to you. Usually the modified point-of-sale terminal is  a handheld device.

Once you, the victim, is gone, the scammers then withdraw money from your account using the stolen debit or credit card and correct PIN.

HOW TO RECOGNIZE:

• Two people are involved - one driver and one passenger
• A taxi driver or passenger claims cash is not accepted as payment
• Someone will ask you to pay the taxi fare with a debit or credit card
• A taxi driver will take your debit or credit card from you and insert it into a wireless point-of-sale terminal
• The debit or credit card given back to you is fake

HOW TO PROTECT YOURSELF:

• Do not make payments for people you do not know.
• All licenced taxi companies in Toronto take cash.
• Most point-of-sale (POS) terminals are wireless so make sure you are the person inserting and removing your debit or credit card when using the machine.
• Keep an eye on your bankcard at all times. Remove your card from the POS terminal before giving it back to the merchant.
• Whenever you can, pay with contactless payment options, such as tap. No PIN is required for contactless payments. 
• Get a receipt for any payment card transactions. 
• Consider setting daily withdrawal limits. Even if your debit or credit card and PIN are stolen, there is a limit to how much can be withdrawn from your account each day. Set up alerts through your financial institution(s) that notifies you each time your debit or credit card is used.