Financial Fraud Continues to Cost Canadians Millions

For Monica, the fraudsters were sneaky. So sneaky, she didn’t even realize she was being scammed — until months later.

“I thought maybe, one of my kids used my debit card. It was only $13. Then afterwards it was again, like $20. Never more than $25.”

“They were small transactions that’s why I didn’t notice the money was coming out,” she pointed out.

But she took quick notice in December, when the withdrawals rose to $200.

“Then is when I went through all of my bank statements, and I checked — it (the total) was already at $500!”

Monica, a newcomer to Canada, said she then called her bank to investigate. The investigation showed someone, from Saskatchewan, was pre-authorizing the withdrawals.

“I told them I never travelled to Saskatchewan,” she added. “I never signed anything to authorize the withdrawals.”

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Bank and Investment Fraud Ramp Up

Banking and investment scams have skyrocketed in recent years across Canada, with investment fraud really growing in popularity.  

According to the Canadian Anti-Fraud Centre, investment scams were by far the highest-grossing schemes in Alberta last year.  

These scams involve any false, deceptive, misleading or fraudulent investment opportunities, offering higher than normal or true monetary returns. Simply put, someone offers to invest your hard-earned dollars and get you much more money back.

However, in these types of scams, when your money is transferred to the fraudster, it is not invested – it’s gone to the scammer.

“Once it leaves the bank or the account. There is no way to get it back,” Shivika Sharma said.

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Sharma is an experienced financial advisor in Calgary, leading the team at Sharma Wealth Management-Richardson Wealth.  

She’s aware of several investment frauds targeting victims including Ponzi or pyramid schemes, cryptocurrency schemes, real estate scams, offshore investing schemes and many more.  

How the fraudsters find these victims, she pointed out, is quite easy.

“They follow you through your social media presence. What kind of things are you going on? How long you are spending there? Everything is tracked that way. Then they target.”

Sharma added most scammers also don’t just ask you straight out for money.  

Instead, they’ll get you to give it to them – willingly.

“They are so wonderful (at first) to get that trust built, to get that relationship going. Then they have you go into your own investments and you take it out,” she said. “So, there is no way you can get it back, because it was all voluntarily done.”

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“They (the investor) think, ‘My investment advisor is giving me five-to-six per cent rate of return and this person is offering me 25 per cent rate of return. Why not go with them too?’” Asha Bhati, financial planner with Sharma Wealth added.

“Investment is a very long-term, disciplined strategic approach. There is no quick rich scheme over here,” Sharma said.

“If it was that easy to get rich in a week, we all would be sitting in the Cayman Islands right now.”

Like any scam, Sharma and Bhati said there are many red flags:  

• Don’t blindly trust anyone reaching out to you out-of-the-blue.

• Don’t trust without doing your due diligence.

• Don’t give access, click on any link, share your screen or share any information that might seem odd with anyone.  

• Do investigate the person or company thoroughly.

• Check with your bank to ensure that the company is legitimate.

• Make sure that you have an investment team looking after you that you can question anything out of the ordinary.

Sharma said she’s had to question clients and she added some “weren’t very happy” about it. But she said she’d rather be safe than sorry.

“I’m ok to be shut up in that moment but I don’t want to have the regret that I didn’t try,” she added.

“The point is once that money leaves, it’s never going to come back. You’re going to suffer for the rest of your life. My insult I’ll forget in a day, but you are never going to forget that you don’t have your retirement nest egg.”

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Monica’s Outcome

 Monica, our scam victim, eventually got all of her money back, but it took at lot of time and effort.  

Her advice to others; check your bank statements early and often.

“They (scammers) can do it for years if you don’t report right away. So even if it’s $10 — don’t be afraid to report it to the bank. Ask them for clarification because that can affect you in the future.”

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Common Bank Scams and Other Telltale Signs of a Scam

• The “need it now” wire transfer request: Fraudsters urge you to act right away so you cannot think critically.

• A “surprise” call or text from your bank: Fraudsters often spook phone numbers to make the call seem real. They will also never ask for your bank/credit card numbers, PIN or password over phone or test.

• A visit from your bank: Your bank will not send someone to your home to collect your bank card or money. These are imposters looking to get your financial information.

• Suspicious links or attachments: Be wary of emails or texts with links or attachments as these may be malware.

• “Dear Client” greeting: Your bank knows your name, fraudsters often do not.

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Additional Information:

All Canadian banks and investment firms have legitimate websites and phone numbers to contact them at. They also have numerous scam warnings posted.  

Additional information on all scams targeting Canadians can be found at the Canadian Anti-Fraud Centre

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Related Articles:

• Newcomers Remain Especially Vulnerable to Fraud and Scams
• CRA Warns of Growing Tax Scams in 2025
• Scammers Prey on Desperate Job Seekers

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Media RSVP, Interviews & Inquiries:

Tomasia DaSilva

Media and Relationship Strategist

Email: tomasiadasilva@immigrant-education.ca

Phone: 403-291-0002

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