I don’t know about you, but I have certainly noticed in the past three years (give or take), an uptick in scammer phone calls. I have won cruises, learned there was a warrant for my arrest, received threats that my SIN number will be revoked, and have been reassured that I can make all of these problems go away through the transfer of bitcoin or an Apple gift card.
Sadly, these scams have become increasingly sophisticated – last year, Canadian’s reported losing approximately $416 million to fraud. CBC Toronto reports that that is a 55% increase from the previous record high of nearly $269 million across the country in 2021. According to the Canadian Anti-Fraud Centre, more than half of the losses in 2022 came from Ontario alone.
Alarmingly, these numbers are likely significantly higher. Canadian police estimate that only 5-10% of frauds are ever reported. From the point of report, few fraud cases lead to criminal charges. According to the investigative series The Cost of Fraud, CBC Toronto further reports that over the last decade, “Ontario has seen fraud reports skyrocket, with just a sliver of annual reports leading to criminal charges, and nearly half of those already scant charges dropped each year.”
Frank Herman and his wife, both in their 80s, fell victim to a phone scam that they say could result in losing their home. Mr. Herman explained that he and his wife had received phone scams in the past and knew to ignore them, however, this particular scam was sophisticated enough to convince Mr. Herman that he was legitimately dealing with the RCMP. Sadly, little evidence on the fraudsters could be obtained, such that the Hermans were informed by the police that there was little that could be done.
Unfortunately, there are many stories similar to that of the Herman’s. The Ontario Provincial Police have reported that seniors are most likely to lose money in scams, estimating that they are 33% more likely to lose money in a scam than any other age group. According to the Canadian Anti-Fraud Centre, 1,177 “emergency scams” were reported in 2022, accounting for $5.4 million in losses. Emergency scams, which include “grandparent scams,” often target seniors. The scammer pretends to be a family member in some kind of emergency who requires the immediate transfer of funds. The scammers often know enough about the victims for it to appear as a real phone call from a family member. The vast majority of these reported scams came from seniors over 60, with 917 reported cases in 2022 totalling $4.6 million in losses.
While seniors are most likely to be targeted by such scams (and to fall victim to them), they are the least likely to report the scams out of shame, and a valid fear of losing their independence, or having their competency questioned. This means that the statistics regarding the disproportionate impact of scams on seniors is likely much higher than the data currently indicates.
As part of its investigative series, CBC Toronto has compiled a list of tips on how to avoid scams:
- Take 5 minutes to think about it, tell two people to bounce the pitch off them;
- Be suspicious of unsolicited text messages, calls and emails;
- If there’s a time crunch/sense of urgency to pay the money, be wary;
- Read the fine print;
- Don’t share information over the phone, text or email with people you don’t know, and
- Don’t send money to someone you don’t know (especially cryptocurrency).
To learn more about fraud in Ontario, restitution and collection, see here.
For an example of a civil case where a senior was targeted by mortgage fraud, see here.
Thanks for reading!