Seniors be wary of fraudsters and scammers

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March is Fraud Prevention Month and features an annual campaign that seeks to help you recognize, reject and report fraud. This year’s theme, “Tricks of the trade: What’s in a fraudster’s toolbox?” will help Canadians recognize the increasingly sophisticated tricks and tools scammers use to entrap victims. It may be the end of the month, but I am hoping to get in the last word about scams and fraud – “NO”.

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Are you looking to invest? In these difficult times of fixed incomes, rising inflation and perhaps children and grandchildren that you wish to leave a substantial inheritance to provide the incentive, but RESIST.

Canadians are being scammed out of record-breaking dollar amounts via cryptocurrency investment fraud. According to the Canadian Anti-Fraud Centre, Canadians reported losses of $308.6M to investment fraud in 2022 compared to $164M in 2021. Of those reports, many involved Canadians investing in cryptocurrency after seeing a deceptive advertisement.

Crypto scammers use various tools to entrap you. They create a false sense of urgency and capitalize on your fear of missing the next big investment windfall. They use fake websites that feature phony reviews and endorsements from celebrities and regulators, even fake videos, all to make the investment look legitimate.

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What makes crypto scams unusual is the complexity of digital finance and currency. Many Canadians do not fully understand cryptocurrency beyond knowing that it is a newer form of payment. Scammers know that, and they use that lack of knowledge to deceive people. Do not act quickly: Take some time and think about the offer. Fraudsters often use high-pressure tactics to get consumers to hand their money over quickly, before they have time to think.

· Be wary of “too-good-to-be-true” investment offers from friends, family, social media or dating websites.

· Be skeptical when someone insists that you do not discuss the investment opportunity with others.

· Be aware that once a cryptocurrency transaction is completed they cannot be reversed.

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· Do not fall for claims that cryptocurrency investments are backed by the Bank of Canada or other regulatory bodies, or that cryptocurrency is legal tender. This simply is not true.

If you believe, you have been misled or think you have seen a cryptocurrency investment fraud, report it to the Canadian Anti-Fraud Centre (1-888-495-8501) or local police.

Another situation that causes me great concern is the “emergency-grandparent scam”. Fraudsters are targeting seniors by calling and pretending to be a family member in distress, the police or a lawyer claiming that a loved one is in trouble, and needs money immediately. Victims are told there is a gag order and the senior cannot speak to anyone.

Fraudsters will typically:

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· Call demanding immediate payment for bail, or fines to avoid going to jail. The courts will not ask for cash to bail out someone in custody, and require people to be present in court.

· Claim to be a lawyer, police or family member in an emergency situation demanding funds. Be suspicious of calls that require immediate action. Call your local police and contact the family member directly to confirm their safety.

· Request cash and send couriers for pick up, or demand the victim send cash by courier services or via cryptocurrency. Never send cash, cryptocurrencies or any other funds to unknown persons, unverified addresses or bank accounts. If they send a courier, call the police to have them intercepted.

While you may want to help a family member in crisis, it is important to be vigilant. If you believe you have been scammed or are in the process of being scammed (to the best of your knowledge), contact your local police. Do not be embarrassed. Do not think you can resolve the situation. Scams and frauds could happen to anyone. Call the police!

Information in this column is compiled by Shell-Lee Wert, CCSH, 470 Dundas Street East, Unit 63, Belleville, K8N 1G1. Please visit our website at https://ccsh.ca or email me at shell-leew@ccsh.ca, or call 613-969-0130 or 613-396-6591 for information and assistance. Community Care is a proud United Way member agency. Funding in part from Ontario Health East.