The Royal Canadian Mounted Police (RCMP), Canadian Anti-Fraud Centre (CAFC), and Ontario Provincial Police (OPP) are launching a fraud prevention campaign, February 6 to 10, 2023, to raise awareness about the significant increase in emergency-grandparent scams targeting Canadian seniors.
In 2022, the CAFC received fraud reports totaling a staggering $530 million in victim losses. This was nearly a 40 percent increase from 2021 unprecedented $380 million in losses.
Fraudsters target anyone and everyone, particularly the vulnerable and seniors. In 2022, more than $9.2 million was reported lost to emergency scams, according to the CAFC. This was a drastic increase from $2.4 million in 2021.
Reports from residents indicate the five provinces most impacted in 2022 were:
It is estimated that only 5-10 percent of victims report scams and fraud to the CAFC or law enforcement.
Emergency scams, including variations called "grandparent scams", use urgency and the manipulation of emotions to extort money from victims. In these scams, fraudsters cold call seniors, on landline phones, claiming to be a grandchild, family member, law enforcement officer, or lawyer calling on behalf of their loved one. They'll say that the person's loved one was involved in an emergency situation, such as a collision, charged by law enforcement, legal peril, being sick or injured, etc. They demand the senior provide payment immediately for supposed bail, legal fees, fines, or other amounts "owed" to stop the family member from going to jail or to get them released from custody. This is a scam.
The fraudsters isolate the victims by informing them that there is a court-imposed gag order, and they're forbidden from discussing the matter. The victims are directed to attend their financial institution to withdraw the requested amount in cash. The fraudsters will then send someone to pick it up from the victim's home or have the victim send the money via courier services. There have also been reports of victims paying with cryptocurrency.
Fraudsters can be very convincing, whether using advanced techniques with new technology or going back to basics with just a script and a phone. While law enforcement and partners continue to work together to investigate and stop these criminals, we ask for the public's help in connecting with the seniors in their lives, warning them about these scams, and encouraging them to report any incidents. This one conversation could be life-changing.
Chris Lynam, Director General, Canadian Anti-Fraud Centre, and National Cybercrime Coordination Centre
Fraudsters prey on our emotions and our caring nature. By falsely claiming to be a loved one in trouble, scammers exploit our fears and defraud our seniors out of thousands of dollars every day across this province. I encourage everyone to take a few minutes to educate themselves and the seniors in their family about grandparent scams. The best protection against this type of fraud is awareness and education.
Dominic Chong, Detective Superintendent, Director of Financial Crime Services, Anti-Rackets Branch & Serious Fraud Office, Ontario Provincial Police
This article was published in collaboration with Royal Canadian Mounted Police
Image source: Unsplash.com
