Fraudsters are everywhere and the group suffering the most are actually young Canadians. According to a CPA Canada 2023 Annual Fraud Survey, 68% of 18–34-year-olds surveyed reported being a victim of fraud. That was compared to the 31% for individuals over 55-year-olds who are often considered the more common target for online scams. But there are steps you can take to protect yourself and it starts with education. In this article, we breakdown the 5 most common types of fraud affecting young Canadians and how you can avoid them!
Fraud Type #1: Special Offers
Everyone wants a great deal. Especially if you’re a young Canadian struggling with school fees. That’s why the “special offers” scam is one of the most common types of fraud you can run into.
You’re most likely to run into these “special offers” when using social media. Fraudsters will often pose as small brands looking for your help to build their brand in exchange for free products. But before they can get you on board, they will ask for your personal information or ask you to create an account with a link they provide. With this information, they hack into your account or access funds.
How to avoid:
Ask yourself if this “special offer” is too good to be true. If it is, it’s most likely a scam.
Research the company or offer using Is it a Scam or Scam Detector.
Don’t use links you receive through direct messages.
Fraud Type #2: Facebook Marketplace
Facebook Marketplace is an amazing online community where young Canadians can buy and sell goods at reduced prices. But such a large online community also attracts scams. In a statement to CTV News Ottawa in 2024, Ottawa RCMP mentioned that the Fraud Unit typically receives about 30-35 fraud related complaints per day and about seven to eight of those come from Facebook Marketplace. That’s just one province!
When you’re the buyer, these scammers posing as sellers will ask you to send an Interac e-transfer ® to them before meeting or seeing the product in person. Conversely, as a buyer, they will use a counterfeit cheque or fake Interac e-transfer ® to collect your banking information or get the product for free. In either case, navigating Facebook Marketplace and watching out for scams has become much more difficult.
How to avoid:
Always meet the buyer and see the product before sending your payment.
Never accept cheques. They are too easy to manipulate and counterfeit. Instead, rely on Interac e-transfer ® or in-person cash payments.
Digital cheques are not legitimate so be wary of anyone asking for payment with cheques online.
Sign up for Interac’s AutoDeposit. With this feature, your transfers are automatically deposited into your account without the need to log into online banking or your banking app. It’ll prevent you from logging into a fake system that steals your username and password.
If you plan on manually accepting your Interac e-transfer ®, make sure the email notice comes from Interac.
Fraud Type #3: A Friend in Need
Thanks to mental health education, young Canadians today are heavily engaged with the well-being of those close to them. The “friend in trouble” scam preys on that empathy. In 2020, the Canadian Anti-Fraud Centre reported $1 million in losses to these emergency frauds.
Fraudsters will hack into your friends' online profiles and send you messages asking for urgent assistance. They then ask you to send them an Interac e-transfer ® or cheque while making excuses for why they can’t call and reveal their face.
How to Avoid:
Contact your friends through an alternate method to verify their safety while also remaining secure.
Send your friend an SMS or a message on another messaging platform instead of replying within social media.
Fraud Tip #4: Crypto Investing
Cryptocurrency is a powerful investment option fascinating many young Canadians. However, very few understand the true risks and rewards behind crypto investing. Fraudsters prey on this lack of knowledge. That’s how Canadians lost more than $160 million to crypto investment scams in the first half of 2023 alone.
Crypto investment frauds start with someone reaching out to you with an enticing offer, direct message or fake adverts. These individuals promise incredible guaranteed returns and claim they’ve worked with tons of people who have had success with their services. They then send links to create an account or crypto wallet where they can capture your personal info and funds. And to continue capturing your funds, they may present a fake wallet giving you a false sense of success with your current investments.
How to Avoid:
Crypto investing, although potentially profitable, can also be more volatile than traditional investment options. Anyone promoting a sure-fire strategy to make money with crypto is likely lying.
Since cryptocurrency is unregulated, anyone can pose as advisors or experts. Refer to your local financial institution to find real experts that can help answer your questions.
Fraud Type #5: CRA (Canada Revenue Agency) and Law Enforcement
The most common weapon fraudsters use is creating a sense of urgency. If they can make you panic, they have a much better chance of getting what they want. That’s also where the CRA or law enforcement scams come in.
Scammers will call or send an email claiming you’re in trouble with the law. They will then claim they work for the police or for the CRA and need funds to clear up your situation.
How to Avoid:
Call the official organization number to verify if the threat is real.
Google the CRA number and call to verify if what the caller said is accurate.
The CRA, police, and other governing bodies do not accept Interac e-transfer ® transactions, gift cards or cryptocurrency as a form of payment.
Now you know the most common fraud types affecting young Canadians today and are armed with tips to spot these scams immediately. If you feel like you or someone you know is a victim of fraud, you can report your situation to the Canadian Anti-Fraud Centre and your local police station.