Newcomers Remain Especially Vulnerable to Fraud and Scams

March 10, 2025

News

Canadians continue to lose hundreds of millions of dollars ($638M in 2024) to fraud and newcomers to Canada are not immune. In fact, according to numerous studies and first-hand reports to TIES (The Immigrant Education Society), newcomers are “especially vulnerable”.

“Our financial counselors often hear heartbreaking stories from their clients who have been scammed,” Noha El Tanahi, TIES Manager, Settlement & Financial Literacy said.

“These stories can include individuals losing their entire life savings to investment scams, being tricked into fraudulent job offers that result in financial ruin or falling victim to identity theft leading to long-term financial challenges.”

El Tanahi added newcomers are unfortunately often “targeted by scammers” due to language barriers and/or their unfamiliarity with the financial system and regulations in a new country.

The impact of being scammed, she said, is far-reaching.

“Being defrauded or scammed can have a significant impact on newcomers as they may (again) lose their hard-earned money, face legal troubles, or experience emotional distress,” she pointed out.

“It is a big issue for newcomers because it not only affects them financially but also undermines their trust in the new environment they are trying to settle into.”‍

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Studies on Financial Fraud and Newcomers

Again, numerous studies back these stories up.

An Interac survey conducted in 2023 revealed seven-in-10 (70%) of new Canadians polled felt they were more susceptible to financial scams than the general population.

More than half (53%) of newcomers said they and/or an immediate family member had been targeted by fraud, while more than half (55%) were very concerned about becoming a victim in the future.  

Only 22% of newcomers in the Interac survey strongly agreed they would know what to do if they were the victim of a financial scam.

In addition, a TD survey in 2024 revealed that 90% of new Canadians polled said they were worried about financial fraud.

Nearly three-quarters (73%) said they were more likely to feel vulnerable to being a target for financial fraud, and 28% said they did not know what to do if they became the victim of financial fraud. 

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Fighting Back Against Scammers

However, these studies also found that building financial knowledge is a priority for newcomers.

The Interac survey found 73% of those polled wanted to learn how to protect themselves, and 83% recognized the value of financial management tools. 

A Scotiabank poll conducted in January 2024 also revealed that newcomers to Canada were more proactive in employing fraud prevention strategies compared to other Canadian residents.

Newcomers were 46% more likely to use password manager applications; 16% were more likely to frequently update their online account passwords, and 47% were more likely to regularly discuss financial security and fraud prevention within their communities.

“We educate our clients especially newcomers about common scams, learn how to seek guidance from reputable sources, and consult with financial counselors or advisors to protect themselves from falling victim to fraudulent schemes,” El Tanahi added.

“Being aware of the latest scams and techniques that threat actors are using to commit fraud will help protect you and your clients against information theft and financial loss.”

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Popular Tax Frauds

Some of the latest tax scams reported to TIES include:

CRA payment scam by text message: A text message of an image with the Government of Canada logo claiming to be from the CRA offering a fraudulent Interac® e-transfer deposit. A separate text message containing a link to a realistic impersonation of a sign-in portal for financial institutions is sent.

Messages containing personal information: A message claiming to be from the CRA, requesting a payment or containing a link. It includes personal information such as your name, date of birth, or Social Insurance Number.

GST/HST tax refund/credit scam: Claiming to be the CRA, the threat actor sends you a text message or an email about giving you a GST/HST tax refund or credit. You are asked to provide personal information to proceed.

Scam to access CRA accounts: The threat actor sends a text message claiming to be the CRA to gain access to your CRA accounts. Message will say there is an error with your account.

Identity theft and fraudulent tax returns: Threat actors gather personal information (such as user ID and passwords) and file fake tax returns in your name.

Fraud by the numbers

The Canadian Anti-Fraud Centre reported that as of December 31, 2024, Canadians lost approximately $638 million to fraud, compared to $578 million in 2023.

Victims of fraud in 2024 numbered 34,621, a decrease from 42,316 in 2023.

Reports processed by the Centre totaled 49,432 in 2024, down from 63,847 the previous year.

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Additional Resources:

Government of Canada: canada.ca/en/immigration-refugees-citizenship/services/protect-fraud/newcomers.html

Cyber Security Toolkit for Newcomers to Canada: The Canadian Bankers Association and the Get Cyber Safe campaign offer a free toolkit cba.ca/newcomer-cyber-toolkit

Scotiabank's Cybersecurity and Fraud Hub: Scotiabank’s Cybersecurity and Fraud Hub provides comprehensive resources like scam descriptions and fraud simulation activities. Programs such as StartRight™ and multilingual support help newcomers securely navigate Canada's financial ecosystem.