March is Fraud Prevention Month – an important time to learn about scams that could affect you. With fraud in Canada on the rise, being informed is more important than ever. Fraud awareness is the first step toward fraud prevention.
What does fraud look like in Canada?
If you’ve ever received an email claiming you’ve won a contest you never entered or got a text message from a number you don’t recognize asking for money, you’ve witnessed a fraud attempt.
Fraudsters are getting more sophisticated, taking advantage of digital communication and Artificial Intelligence (AI). Consider this: In Canada, there are more than 34 million social media users, billions of emails sent daily and millions of text messages, WhatsApp messages, and direct messages exchanged. With Canadians fielding so many digital communications, it can be challenging to spot and defend against scams.
AI has also changed the game. In the past, poor spelling and awkward language made scams easier to detect. Now, AI tools like ChatGPT and deepfake technology help scammers create convincing messages and even mimic real voices and videos, making fraud harder to recognize.
The good news? Understanding how fraudsters operate can help you protect your identity, your finances and your home.
6 Common Scams Homeowners Should Be Aware Of
Phishing |
PhishingPhishing scams are not unique to homeowners but because phishing is consistently one of the top scams affecting Canadians, it’s important to be aware of what it can look like. Phishing scams impersonate organizations like banks, delivery companies or government agencies, and claim urgent action is needed. These messages often try to get you to click a link that leads to a fake website or asks for personal and financial information. How to protect yourself
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Mortgage Fraud |
Mortgage FraudMortgage fraud happens when criminals use stolen identities to take out a mortgage or home equity loan in someone else’s name. Victims often don’t realize it until they face unexpected debt. How to protect yourself
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Home Improvement Scams |
Home Improvement ScamsScammers pose as contractors offering low-cost or quick home renovations. They often use high-pressure tactics to get large deposits and then either disappear or do poor work. How to protect yourself
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Property Title Fraud |
Property Title FraudIn this scam, fraudsters use stolen identities to transfer a homeowner’s title and sell the property without their knowledge. How to protect yourself
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Utility Scams |
Utility ScamsHere, scammers impersonate utility companies, claiming you owe money and will be disconnected immediately if you don’t pay. How to protect yourself
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Foreclosure Fraud |
Foreclosure FraudThis occurs when scammers target homeowners facing financial difficulties. They might pose as professionals offering to negotiate with lenders, charging fees without delivering any real help. Others trick homeowners into signing over their title, draining equity and leaving them in worse financial shape. How to protect yourself
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What To Do If You’re a Victim of Fraud
In Canada, fraud is significantly underreported. The Canadian Anti-Fraud Centre estimates that less than 5% of fraud victims report their experiences, which makes it harder to fight fraud and protect others.
If you are a victim of fraud, here are your next steps.
Report it immediately. Here’s how
- If money was stolen from your account, contact your bank or financial institution
- Report to the Canadian Anti-Fraud Centre: Online at www.antifraudcentre-centreantifraude.ca or by phone at 1-888-495-8501
- Call local police by using the non-emergency number
Top 3 Ways Canadians Can Protect Their Identity & Finances
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Monitor your credit report: Contact Equifax Canada and TransUnion Canada to check for unauthorized accounts or loans and consider adding a fraud alert to your credit file |
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Update your passwords for online and mobile banking, email and your social media accounts. For extra protection, enable two-factor authentication (2FA) or multi-factor authentication (MFA) where possible. |
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Consider title insurance if you were a victim of property title fraud |
Fraud is evolving, but so are the ways to protect yourself. By staying informed, verifying any out-of-the-blue requests for money or information and using precautions like title insurance and credit monitoring, you can reduce your risk. If you ever suspect fraud, report it to the Canadian Anti-Fraud Centre or your local authorities. Being proactive today can save you from major financial and legal headaches down the road.