Recognizing A Scam Pitch (FPM2024)

A lot has changed in the last 20 years: how we handle money, where we get our news — even how we navigate personal relationships. Advances in technology and communication have made things easier for citizens, consumers, and scammers alike. But the more things changes, the more some things remain the same. At root, the main hallmarks of a shady situation haven’t changed. This Fraud Prevention Month, let’s take a look:

Act Now!

• Whether it’s old school Ponzi or pyramid schemes, pump and dump investments, or a cutting edge cryptocurrency offer, the too good to be true, once in a lifetime investment opportunity plays on our dreams of wealth, the psychological appeal of feeling savvy, and above all the fear of missing out.
• Emergency scams involve someone claiming to be representative of government or law enforcement contacting which and urgent fine, bill or tax that needs to be paid immediately. In fact, they often claim that authorities on their way right now and they are the only way to avoid dire consequences.
• Service scams similarly encourage an urgent response, commonly claiming to be tech support for a dangerous virus on your computer or a fraud prevention unit alerting you to suspicious activity on your credit card. They will request remote access to your devices or ask you to confirm account information which can leave you exposed to identity theft.

Special Instructions

• Unique instructions usually follow after a sense of urgency had been created. Phishing scams will ask you to follow a strange link to claim a refund or prize, or to check the status of an account or delivery. Following through on this will lead you a page asking for personal information, or try to initiate a download on your device.
• Job scams seem to offer an easy way to make extra money, advertising lucrative low-effort jobs in newspapers, classifieds websites or job-finding message boards. In the past, it involved cashing fraudulent checks and sending a portion onward via a wire transfer; now it uses e-transfers. Either way, the “employee” is left on the hook for cashing counterfeit payments. Other employment scams involve fake staffing services who need processing, administrative or relocation assistance fees, or influencer gigs — usually involving cryptocurrency — which require the creation of an account and a digital wallet.
• Whether it’s crypto, money transfers, gift cards or even cash, a request or demand for a specific type of payment by one method only is an important clue that an offer may not be legitimate.

The Personal Touch

• Scammers will also try to exploit your emotions. A common version of emergency fraud is the grandparent scam. Targeting the elderly, the scam features someone claiming to be a loved one in an emergency situation like an arrest or car accident, and a need for money quickly. This urgent need usually involves a quick money transfer or cash payment to an unusual contact — this scam can involve several people pretending to be lawyers or law enforcement who will create a sense of a legitimate back and forth to get a payment from you. Today, it’s made all the more dangerous because Artificial Intelligence (AI) and deepfake technology allows criminals to imitate a voice or even video.
• Romance or relationship scams can also use AI or deepfake tools. The scammers lurk on social media and dating sites, but increasing make initial contact through text message “wrong numbers.” The relationship will escalate quickly, be it romantic, friendly or through a coincidentally shared history. At this point, the faker starts talking about a financial emergency or a recent successful investment. They may not even ask you for money, but wait until you ask for more information.

If you suspect you have been a victim of cybercrime or fraud, report it to your local police and to the Canadian Anti-Fraud Centre’s online reporting system, or by phone at 1–888–495–8501.

Even if you’re not a victim, you should report the attempt to the CAFC anyway.