Fraud Awareness Week
Fraud Awareness Week is November 17 - 23. As the holiday season is approaching, it is important to remember that while it is the season of “giving” it is also the season of “taking” for scammers. Check out the Canadian Anti-Fraud Centre for common holiday scams.
Sergeant Kevin Talbot with the Lethbridge Police Service Economic Crimes Unit spoke with us in 2023 about fraud and how it impacts seniors. Sergeant Talbot has one critical piece of advice, “What it boils down to is – and this is a tip for all of us regardless of how old we are – don’t respond to unsolicited communication.” In this article we hope to bring an increased awareness about fraud and communicate ways to protect and prevent individuals from falling victim – especially seniors.
We will discuss:
Why are Seniors Targeted for Fraud?
How to Spot a Scam
What are the Most Common Scams?
What to do After Being Scammed
How to Protect Yourself
Why are Seniors Targeted for Fraud?
Although anybody can be a victim of fraud, older people are often targeted and fall victim to fraud more than others. There are many reasons why this could be:
Retirees are often home during the day and have the time to answer unsolicited communications (calls, text messages, emails, pop ups on the computer etc.)
Seniors may not live near close family or friends to ask a second opinion or may feel uncomfortable asking questions.
Seniors come from a trusting time and believe that what people are telling them to be true
Older people may not be very technology literate and some fraudsters take advantage of this lack of understanding. It can also be difficult to do their own research if they’re not comfortable using new technology.
Sergeant Kevin Talbot stated, “some of it is sheer dumb luck. It can happen to anybody, it really can. They don’t target an individual or certain demographic. They’re just sending out random unsolicited communication. The problem is often seniors fall for the scam, losing a lot more.”
According to the Canadian Anti Fraud Centre (CAFC), between 2020 and 2021 there was an 88% increase in seniors reporting fraud. Fraud is steadily increasing with the rise of our digital world; however, fraud is underreported and numbers are likely higher.
“They’re [Seniors are] usually embarrassed that they fell for something or that they even have to ask if it’s a scam or not.” Sergeant Talbot would like to remind people to not be embarrassed about it. “We’re not going to laugh at you if you report this and we want to do what we can to help you get your money back, and help bring the people to justice.”
How to Spot a Scam
Unsolicited Communication
Example: a call, text, email, or website popup that you weren’t expecting
If it’s too good to be true, it probably is
Example: “you’re a winner!” but you don’t remember entering a contest or the contest happened months ago. Do your own research or contact the police to check if this is a scam.
There is a sense of urgency to act now
Example: “You need to give us money now or else there will be a warrant out for your arrest.”
It’s harder to think things through when you are told to act quickly. It is a tactic to catch you off guard.
You’re questioning if it is a scam.
The communication feels unprofessional or you question the validity of what is being communicated to you. If something does not feel right, don’t fall for it. Trust your instincts.
There is not a professional process to transfer money.
Example: you are asked to pay with gift cards or to not tell anybody that you are sending money. There is no contract, receipt or proper forms to go along with the payment.
Most Common Scams
Many frauds have remained the same throughout the years but there are some with a modern twist. In 2015, 50% of CAFC reports were cyber enabled and in 2021 the number had jumped to 75%. Cyber enabled frauds are expected to steadily increase over the years.
One big change in modern scams is the use of cryptocurrency. “Crypto” has become a major buzz word over the years, and has generated curiosity and excitement. Cryptocurrency is a form of currency that does not have a physical form like other traditional currencies. It is also not issued by a central banking authority such as the Bank of Canada. Since this form of currency does not have a physical form, it can easily be exchanged across the world in seconds. Cryptocurrency fraud has increased by 238% just from 2020 to 2021.
Listed below are the top scams Sergeant Talbot recommends seniors watch out for.
Investment Scams, Including Cryptocurrency
“Investment scams, especially cryptocurrency is a big one. The scams have not really changed a whole lot, it’s just the way they are doing it has changed with the way that they are being paid or given money. As far as seniors and those types of scams, they often fall victim to investment scams.”
Emergency
“The emergency scams where they will get someone to call and claim that their grandson is in jail or the hospital or something like that. They claim you will have to pay the bail money or hospital fees. That’s quite a popular one with seniors.”
“Another one is the CRA scam where seniors are told they owe taxes and they have to pay a fee in order to not go to jail.”
“We [the police] won’t call you and tell you your kid [or grandchild] is in jail and you have to bail them out. There is a process and that’s not it. You won’t be sent communication from the Canada revenue agency that there’s a warrant out for your arrest. That’s not how it works.”
Computer Pop Up Scams
“Computer pop up scams are popular with seniors and I think a lot of it has to do with the fact that seniors are sometimes not too experienced when it comes to computers. Often, they trust what comes up on the computer must be true. A pop up will come up saying that they’ve got a virus on their computer or someone has hacked into their bank account. Things like that come up as a popup and they will click on it and that’s how they get hooked into the scammers and stories of why they should give them money.”
Charity Scams
“When there’s a natural disaster somewhere in the world, you’ll often get unsolicited scammers contacting people to see if they will donate to the cause. Most people keep up to date with the news so if there is anything in the news where you could contribute help, they’ll use it as a hook for your money. Right now with the Russia-Ukraine situation – that’s a perfect example.”
Romance Scams
In this type of fraud, someone will create fake identity to gain a victim's trust and then manipulate them into providing money, gifts or personal information. These exploitive relationships can last for months online, including dating websites, social media, and e-mail. Always be cautious when someone you have never met in person asks for money.
What to Do if You’ve been Scammed
Collect your thoughts. Do you have documentation of your communication with the fraudster? Maybe you have emails or receipts? Gather any information that might help police.
Contact your bank – flag your account and change passwords.
Do your own credit check with Equifax and TransUnion. It is important to use both.
Contact police even if you are not sure if you have been scammed.
Protect yourself from future fraud
Protect Yourself from Future Fraud
Keep your credit limits low on credit cards. Only have what you need and be careful increasing your limit just because you can.
Stay on top of your banking and make sure you know what is coming and going. You can set up bank notifications on your phone. You will receive a notification each time there is a transaction made, rather than waiting for your statement at the end of the month.
Hang up and block calls from unsolicited phone numbers.
Do your own research. Have somebody you are comfortable trusting for a second opinion, whether that be a family member, a friend, or the police. Check the website for the Canadian Anti-Fraud Centre or other websites such as the CRA for updated scams that are circulating.
“You’ve got to remember, this is your money; it’s no one else’s money. You have the right to that money 100% and don’t let anybody trick you into separating yourself from your money.”
Fraud can happen to anyone under the right circumstances. Do not be embarrassed if fraud happens to you and please report the incident and seek help. If you have questions or concerns about communications you have received, contact the Lethbridge Police through their non emergency phone line: 403-328-4444 or email: inquiries@lethbridgepolice.ca
The Lethbridge Police Service also conduct fraud presentations throughout the year at senior housing facilities, Nord-Bridge Senior Centre, and various community events to educate seniors. Also check out the Lethbridge Police website for media releases on current scams circulating in the community.
References:
Thank you to Sergant Kevin Talbot from the Lethbridge Police Service Economic Crimes Unit: https://www.lethbridgepolice.ca/
https://publications.gc.ca/collections/collection_2022/grc-rcmp/PS61-46-2021-eng.pdf
https://www.antifraudcentre-centreantifraude.ca/index-eng.htm