BestForBest // Shutterstock
New money scams are popping up: Here are the ones to look out for
A phone receiving a likely scammer’s call.
Financial scams are an unfortunate reality of life for consumers. According to the Canadian Anti-Fraud Centre, Canadians reported $530.4 million (CND) in financial fraud losses in 2022, a 170.2% increase in just one year. And the situation in the U.S. is even bleaker, with the Federal Trade Commission reporting Americans lost more than $10 billion (USD) from financial fraud in 2023.
While some scams are obvious, others can be rather convincing. It doesn’t help that scams are constantly evolving, and new types of fraud are invented daily. A quick slip-up, and you could be giving away some of your vital information.
To protect yourself, Money.ca shares tips to think like a thief and stay current with the most common scams.
Facebook Scams
While Facebook is a great place to connect with people, it’s almost become a prime hunting ground for thieves. One common scam involves fraudsters who set up a group or fan page that looks identical to an authentic brand. For example, it could be an airline or a popular retailer.
They’ll then advertise a contest where all you need to do is enter your personal information or bank details for your chance to win. As soon as any “brand” starts asking for specific information about you, red flags should be going off. It’s okay to give your name and email, but if they’re asking for your government ID numbers, bank account, or copies of your ID, it’s probably a scam.
Note that there are other scams on Facebook, including account cloning, where someone poses as a relative or friend and asks for financial help. There are also romance scams where the end game is getting you to send them money. If something doesn’t seem right, don’t be afraid to call the brands or your friends in person to see if what they’re advertising or asking for is legit.
AI Scams
Artificial intelligence, or AI, is seemingly everywhere nowadays, so it’s only fitting that AI is now making its way into consumer financial scams. Fraudsters are using AI for a whole host of scams, including deepfakes, a process in which scammers employ AI to create convincing voice clones, making it difficult for victims to distinguish between real and fake emergency situations.
But the threat of AI scams also extends to phishing attacks, with fraudsters using AI bots to create sophisticated emails, text messages, and social media accounts. These bots are highly personalized and can bypass traditional spam filters, increasing the likelihood of users falling for the scam.
Online Shopping Scams
Online shopping scams have become a prevalent issue in today’s digital age. Scammers have honed their skills and are now specifically targeting online shoppers, who are particularly vulnerable to fraud. These scams are becoming increasingly sophisticated, with scammers creating fake websites and launching social media campaigns to deceive unsuspecting consumers.
What makes these scams even more dangerous is that they often impersonate well-known brands, luring shoppers with unbelievably low prices that are simply too tempting to resist.
What makes these scams even more dangerous is that they often impersonate well-known brands, luring shoppers with unbelievably low prices that are simply too tempting to resist. Because of this, it’s important to be cautious when encountering too-good-to-be-true offers, especially when shopping online, as they can have devastating financial consequences.
Revenue and Tax Scams
Tax scams are a very common form of fraud that prays on a collective fear of the tax man. These scams come in many forms, but follow one basic pattern: Someone claiming to be from the Canada Revenue Agency or the Internal Revenue Service will call or email and claim you owe back taxes. If you don’t pay immediately, you’ll be arrested or deported.
The claim seems far-fetched, but it targets seniors or new immigrants who may not know any better. You’ll know it’s a scam when they ask you to pay by gift cards or Bitcoin. They’ll also tell you that you’ll be arrested or deported right away if you say anything to anyone.
Just hang up if you ever get one of these calls. Tax authorities will never call you with aggressive language or threats. They’ll also never ask for immediate payment. If you’re not sure if a call you received is fraudulent, call the agency directly and ask them if an agent has been trying to contact you.
Package Delivery Scams
Package delivery scams have become increasingly prevalent in recent times. Individuals are receiving fake messages, supposedly from reputable companies such as Amazon, UPS, FedEx, or the post office, regarding upcoming or missed deliveries. These scams aim to deceive you into clicking on links that direct them to fraudulent sign-in pages or websites infected with malware. It is crucial to remain vigilant and exercise caution when encountering such messages.
Rental Scams
With the cost of rent rising in many parts of the country, many people are looking to cut back on their living expenses. Thieves know that and are starting to exploit people by putting up fraudulent ads about apartments or rooms for rent on sites like Facebook Marketplace and Craigslist. The price will usually be a touch below market price, which will drive up interest.
These listings will look legit as there will be plenty of pictures, but once you reach out, you’ll know that it’s a scam as they won’t do a face-to-face showing. While it’s easy for locals to verify if the rental available is real or not, fraudsters target people who don’t live in the area, but need affordable housing. Also, note that this scam doesn’t apply to just monthly rentals. The same scam has been used for short-term rentals in popular tourist destinations.
The fraudster will demand the first and last month’s rent via wire or e-transfer. Once you’ve made the deposit, you’ll never hear from them again. To avoid this scam, always view the property in person and verify the person is the owner. The easiest way to do this is to ask to see a property tax bill with their name on it. You could even check with the city’s public records to verify ownership.
Fake Employment Scams
Many job postings online look legit, but are clearly fake. One of the most common job scams involves working from home. Your new employer will send you a cheque. You’ll use part of that money to set up your home office. The rest of the money will be sent back to your employer via e-transfer.
The cheque will seem legit at first since some of the funds become available right away. However, the cheque will eventually bounce after a week or two. While you could return any items you purchased, there’s no chance of recovering the funds you sent via e-transfer. So although you’re clearly a victim of fraud, your financial institution won’t be returning any money to you.
Protect Yourself From Financial Scams
Fraudsters are constantly coming up with new scams, so it’s important to take steps to protect yourself. Here are some tips to keep in mind:
- Never give out personal information: Avoid sharing sensitive details. This will help prevent scammers from accessing your accounts and stealing your identity.
- Stay updated with government advice: Regularly check relevant government websites for information on common scams. This will help you stay informed and avoid falling victim to fraudulent schemes.
- Be cautious of deals that seem too good to be true: If a deal sounds too good to be true, it probably is. Scammers often use enticing offers to lure people in, so it’s important to be skeptical and do your research before making any financial decisions.
- Educate yourself and share knowledge: Stay informed about the latest scam tactics and share this knowledge with your friends and family. By spreading awareness, you can help others avoid falling victim to financial scams.
- Report suspicious activity: If you encounter any suspicious activity or believe you have been targeted by a scam, report it to the appropriate authorities. This will help prevent others from being victimized and may aid in the investigation of the scam.
- Shop with credit cards for additional safety: Using a credit card can help protect you from fraud as it gives you both purchase protection and the ability to conduct a chargeback should the merchant attempt to scam you.
Remember, being proactive and cautious is key to protecting yourself from financial scams. Stay vigilant and follow these guidelines to safeguard your personal and financial information.
This story was produced by Money.ca and reviewed and distributed by Stacker.
