The Northumberland Detachment of the Ontario Provincial Police (OPP) is urging the public to stay vigilant as fraud-related financial losses continue to escalate across Canada, according to the Canada Anti-Fraud Centre (CAFC).
As of December 31, 2024, the CAFC reported a $638 million CAD in total losses from fraud, marking an increase from $577 million in 2023 and $531 million in 2022. It’s estimated that only 5-10% of fraud victims report their cases to the CAFC, underscoring the importance of awareness and prevention.
Identity fraud and service fraud remain the most commonly reported types of fraud in 2023 and 2024.
In 2024, the largest financial losses were attributed to investment fraud ($310.6 million), spear phishing ($67.3 million), and romance scams ($58.4 million).
In Ontario alone, investment fraud resulted in nearly $103 million in losses, while spear phishing accounted for almost $40 million. Romanc e scams caused over $19 million in losses within the province.
Understanding Identity Fraud
Identity theft occurs when criminals steal personal information through methods such as dumpster diving, mail theft, phishing, or database breaches. Fraudsters use this information to access bank accounts, open new credit lines, apply for loans, make purchases, or even claim government benefits.
Recognizing the Signs of Identity Fraud
Watch for these red flags that may indicate you’re a victim of identity fraud:
Missing bills or receiving bills from unfamiliar service providers.
Unfamiliar transactions on your bank or credit card statements.
Letters about credit applications you didn’t submit.
Unauthorized accounts or applications showing up on your credit report.
Calls from creditors or collection agencies regarding accounts you didn’t open.
If you notice any of these signs, it’s crucial to take action immediately.
Protecting Yourself Against Identity Fraud
To safeguard against identity theft and fraud:
Be cautious of unsolicited communications asking for your personal or financial information.
Regularly check your credit reports and bank statements for discrepancies.
Shred sensitive documents before disposal.
Collect your mail promptly to prevent theft.
Notify the post office and relevant institutions when you move.
If You’re a Victim of Fraud:
If you suspect you’re a victim of identity fraud, take the following steps:
Contact your financial institutions: Report the fraud, place flags on your accounts, and change all passwords.
. Report to the police: File a report with your local police and obtain a reference number.
. Report to the CAFC: Call the CAFC toll-free at 1-888-495-8501 or use their Fraud Reporting System.
. Notify other relevant organizations: Depending on the situation, inform other entities like Canada Post or service providers.
Understanding Service Fraud
Service fraud occurs when businesses or individuals misrepresent, fail to deliver, or offer unnecessary services with the intent to defraud consumers. This can include charging for services that were never rendered, misrepresenting the quality of services, or billing for unsolicited services.
If you’ve fallen victim to service fraud, it’s vital to report the incident to both the CAFC and local law enforcement to help authorities track fraudulent activities and prevent further victimization.
Common Types of Investment Fraud
Investment fraud occurs when individuals are misled into investing money into fraudulent schemes.
Some common forms of investment fraud include:
. Ponzi schemes: Fraudsters promise high returns with little risk, using funds from new investors to pay older ones.
. Pyramid schemes: Participants are recruited by promising payments for enrolling others, rather than for actual investments or product sales.
. Stock price inflation scams: Fraudsters artificially inflate stock prices with false information, selling their shares at a profit and leaving other investors with worthless stocks.
. Offshore investments: Fraudulent investment opportunities pitched as tax-free or offering high returns from outside Canada, often without regulatory oversight.
. Cryptocurrency scams: Fraudsters offer fake investment opportunities in new or non-existent cryptocurrencies, promising unrealistic returns.
Red Flags of Investment Fraud
Look out for these warning signs of potential investment fraud:
Unsolicited investment offers, especially from unknown sources.
Promises of high returns with little or no risk.
Pressure to invest quickly or secrecy around investment details.
Reluctance to provide proper documentation or information about the investment.
Overly complex or secretive investment strategies.
How to Protect Yourself from Investment Fraud
Research thoroughly: Investigate the investment opportunity and its promoters. Look for reviews, complaints, or any regulatory actions.
Consult professionals: Seek advice from licensed financial advisors or do due diligence before making any decisions.
Verify registration: Ensure the investment and its seller are registered with the appropriate regu latory bodies in Canada.
Be skeptical: Exercise caution with investments that sound too good to be true or promise guaranteed returns.
Understanding Spear Phishing
Spear phishing is a targeted form of phishing where fraudsters impersonate trusted sources to deceive individuals or organizations into revealing sensitive information or transferring funds. Unlike general phishing, spear phishing uses personalized tactics to increase the likelihood of success.
How Spear Phishing Works:
Information gathering: Fraudsters collect detailed information about their targets, including their roles, relationships, and communication patterns.
Email spoofing: Fraudulent emails appear to come from trusted contacts, often by spoofing the sender’s address.
Deceptive communication: Fraudulent emails are craf ted to appear legitimate, mimicking the style and language of trusted sources.
Malicious actions: These emails may contain malicious attachments, links, or requests for sensitive information or financial transactions.
Common Spear Phishing Tactics
Invoice fraud: Sending duplicate invoices with updated payment details to redirect payments to fraudulent accounts.
Business email compromise: Spoofing a business email account to request unauthorized fund transfers or sensitive information.
Preventing Spear Phishing
Verify requests: Always confirm the authenticity of unsolicited requests for sensitive information or transactions, especially those received by email.
Examine email addresses: Be cautious of slight variations in the sender’s address that mimic legitimate contacts.
Avoid clicking unknown links: Do not click on links or download attachments from suspicious emails.
Implement security measures: Use email filtering, spam detection, and employee training to help identify and prevent spear phishing attempts.
Additional Resources:
For more information on different types of fraud and how to protect yourself, visit the CAFC’s website: Canadian Anti-Fraud Centre.
Additionally, the Government of Ontario provides helpful resources for identifying and reporting scams and frauds: Identify a scam or fraud | ontario.ca
By staying informed and vigilant, you can better protect yourself from fraudulent activities. If you suspect you’ve been the victim of fraud or cybercrime, report it immediately to your local police and the Canadian Anti-Fraud Centre at 1-888-495-8501 or through their online reporting system.
Author: Pete Fisher
Has been a photojournalist for over 30-years and have been honoured to win numerous awards for photography and writing over the years. Best selling author for the book Highway of Heroes - True Patriot Love
