Protecting parents from common money scams
KEY TAKEAWAYS:
✔ Fraudsters are getting smarter and smarter, so take a moment to protect your parents and grandparents from money scams.
✔ Identifying a potential money scam or online fraud is the first step toward protecting your loved ones, their money and their identity.
✔ Stay on top of the latest scams. Check out online resources that provide the latest details on phone, mail or online money scams.
Fraud and online money scams have become a part of everyday life in Canada, with $567 million in victim losses in 2023, according to the Canadian Anti-Fraud Centre.[i] And fraudsters are becoming more and more sophisticated in how they target people, using technology and new techniques like AI to trick you and your loved ones out of your money. In particular, older people can be more vulnerable to these schemes, especially if they are new to Canada or are unfamiliar with common business practices.
Help protect your parents, grandparents, and elderly family members by helping them spot the signs of a money scam and learn what to do if they suspect someone is trying to take their money or steal their identity. Share with them some of the common financial tricks so they recognize them before they become a victim of fraud.
Door-to-door scams
Uninvited? Unexpected? It could be a scammer looking for money.
What to do
It may be tradition or habit to welcome a stranger, let them in, and listen to what they have to say. Assure your parents or grandparents that it’s OK to not engage with strangers on the doorstep. Tell them to:
- Ask for identification as a first step to having a conversation.
- Say that they are busy or not interested if they are feeling pressured and end the chat.
- Close and lock the door if they feel uncomfortable.
Mail scams
Fake mail can look real, and that’s how scammers get their victims to respond with confidential information or send money.
What to do
Encourage your family members to question why someone would send a request by mail and let them know that it’s OK not to respond right away. If something looks or seems suspicious, here’s what they should do:
- Ignore requests for money.
- Contact companies directly to confirm offers.
- Don’t reply to the number or website on the fake mail. Confirm the number online.
Relationship scams
The ability to fake a human voice lets scammers call your relatives and pretend to be you or someone else close to them, like a grandchild.
What to do
Make everyone in your family aware of the fact that people can fake voices and that’s why you need a “safe word.” For example, your word could be something as simple as “flower.” If a family member gets a call from someone pretending to be somebody they know, they should ask, “What’s our safe word.” If the caller doesn’t know, then hang up immediately.
Email and online scams
There are so many email and online scams that the best advice you can give a parent or grandparent is to ignore anything asking for information or payment.
What to do
Here are some of the most basic skills you can teach your loved ones:
- Verify the sender of an email by scrolling over the address – most scammers will use an address that is not associated with any company or agency.
- Protect banking information, and never give anyone bank account details or personal identification numbers (PIN).
- Do not respond to texts or emails that direct them to a website that asks for personal information.
- Delete any emails or texts that ask them to click on any links.
- Do not respond to anyone asking for urgent payment or money transfers, as this is almost always a sign of a scam.
Bank fraud
Canadian banks and other financial institutions, like insurance companies, will never ask for personal information. It’s that simple.
What to do
If your parents or grandparents are contacted in any way by someone claiming to work at their bank, here's what they should do:
- Ignore any calls, emails, or other messages asking for their personal information.
- Don’t react to urgent threats. Urgency is almost always a trick used by fraudsters.
- Be cautious, but don’t assume every call is fraud. It may be a legitimate survey, or the bank may have a good reason for reaching out to them.
- When in doubt, tell them to contact their bank branch and ask if they need information.
Income tax scams
Fraudsters like to pretend they work for the Canada Revenue Agency (CRA) because most people don’t want any trouble with the nation’s tax department.
What to do
Make it clear to everyone in your family that any messages from the CRA asking for money or offering to send a refund are likely scams. If they are suspicious, they should:
- Not share any personal information with a caller.
- Get the caller’s information, including a name, office location, and phone number so they can call them back.
However, there are times when they may need to contact someone. Here’s how to verify that a call came from a legitimate CRA phone number. Check it out.
We all make mistakes
Even the most cautious, smart, and prepared people can make a mistake like clicking on a link or handing over a piece of information to the wrong people at the wrong time. It happens every day. If your older relatives fall victim to a scam, they may feel embarrassed and not tell you. Assure them that speaking up immediately and reporting the scammer is the fastest way to make things right.
Learn more about common money scams and how to protect yourself.
Disclaimer: This content is intended for informational purposes only and does not constitute financial advice on any subject matter.
[i] Royal Canadian Mounted Police (RCMP) website. Fraud Prevention Month 2024: Fighting fraud in the digital era. Viewed October 2024. Source.