How to protect yourself from impersonation scams

Fraudsters keep coming up with new and sneaky ways to trick people out of their money. According to the Canadian Anti-Fraud Centre (CAFC), Canadians lost over $560 million to fraud in 2023.¹ Most of the top-10 frauds nationally are types of impersonation scams.

Here’s what you need to know about impersonation scams and how to best protect yourself against them.

Impersonation scams are frauds in which criminals pose as someone they’re not. Their aim? To trick you into giving them money or personal information.

These scams can take many forms, but they usually follow a similar pattern. Fraudsters pretend to be from a trusted organization like your bank or the government. Some might even claim to be a friend or relative in distress. They can reach out via phone, email, text, social media, pop-up messages, or other means. They often use tech tools to make the call display, email address, website or app look real. 

Research shows that businesses that embrace digitalization have higher customer growth than those that don’t, increased revenue and improved efficiency.²

In 2023, the Canadian Anti-Fraud Centre reported that Canadians lost over $10.2 million to bank investigator scams. While there are many variations of this type of scam, fraudsters will generally call posing as bank representatives or law enforcement to trick you into giving them money for a supposed criminal investigation.

They may tell you they’re investigating a series of fraud cases that may have been committed by someone at the bank or that your account had been compromised. They will say that in order to help their investigation, they’ll ask you for your bank card and PIN or to transfer money to a separate account provided to you. They may even send an associate to visit you at home to pick up your bank card or cash. 

Enabling one-time passcodes (OTP) is a great way to secure your personal accounts. They are temporary time sensitive codes sent to you through an app, text or email to help protect you from people trying to get into your account. Fraudsters will attempt to get around this by calling and posing as legitimate organizations, like your bank. They may claim your account has been compromised and they need your OTP to investigate further. Having this code allows them to gain access to your accounts to transfer funds and steal your identity.

You get a call, text or email that appears to be from the CRA. They claim you're eligible for a tax refund or other benefits and ask for your banking details to process. Or they might say you owe taxes and threaten you with arrest if you don’t pay immediately. 

Fraudsters create counterfeit websites and apps that mimic those of legitimate organizations, including banks, e-commerce platforms or government agencies. Just like legitimate websites, fake websites will prompt you to enter your personal and credit card information to complete a transaction. However, unlike authentic sites, once you make a purchase or enter your information, you won’t receive your item, and fraudsters will now have access to your personal and financial information. Some sites may also install malware on your device.

In this fraud, also known as the grandparent scam, someone pretends to be a friend or family member in distress. The impersonator may claim to be in jail, involved in an accident or another emergency, and need you to send money. With advancements in AI, scammers can now mimic voices or even create real-looking videos of your loved ones — making the requests even more convincing.

Scammers pose as recruiters or employers offering fake job opportunities that sound too good to be true. They’ll offer you a position that may not be on the company website and without conducting any interviews. They will say that to secure the job, you’ll need to provide your Social Insurance Number (SIN), bank details or payments for background checks or training materials.

Impersonation scams can be hard to spot, especially if scammers disguise their number, email or voice. Here are some red flags that you may be dealing with a scammer:

The following tips could help you from getting tricked by an impersonation scam.

Don’t:

• Rush into anything — Take your time, even if someone claims it’s urgent.
• Click quickly — Never use links or download attachments or apps from an unknown or suspicious sender, ad or website.
• Share personal or financial information — Unless you’re sure of the recipient's identity, don't give your personal or financial details over the phone or online. Never share one-time passcodes or PINs with anyone.
• Use questionable websites or apps — Avoid sites or apps with broken links/buttons, multiple pop-ups or no contact information.

Do:

• Verify identity — If a caller asks for personal or financial information, hang up immediately. Call back using the number on the back of your card or on the company’s official website. If you get an urgent plea for money from someone you know, contact them through another channel or ask a personal question only they can answer.

• Be proactive — Ensure your computer, phone and other devices have the latest security updates and antivirus software installed. Check your bank and credit card statements for unauthorized transactions and report any irregularities as soon as you can.
• Trust yourself — If something feels off, it likely is.

If a scammer tricks you, don't be embarrassed. You’re not alone. Scammers wouldn't continue to do what they do if they weren't successful some of the time.

Take these steps:

• End communication — If you suspect a scam, stop all communication with the potential scammer right away.
• Report the scam — In Canada, you can file a confidential report with the Canadian Anti-Fraud Centre. You can also report it to your local police department.
• Notify your bank — Let your financial institution know right away if you’ve given out any sensitive information so they can secure your accounts. Lock your accounts through your bank’s mobile app, if possible. (Here's how to lock your card in the Scotia mobile app.)
• Change your passwords — Update passwords for all of your accounts, especially those that might have been compromised. Consider using a passphrase when creating your password.
• Monitor your accounts — Keep a close eye on your accounts and credit reports for any unusual activity.

Impersonation scams are getting more sophisticated, but you can help protect yourself by learning to recognize, reject and report fraud and scams. Remember, if something feels off, it’s always best to double-check before moving forward.