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May 26, 2025

Don't Get Duped: Spotting and Avoiding Money Scams in 2025

by Canadian MoneySaver

 

It must be your grandson, Tyler. You haven’t talked to him in a couple of weeks. His voice sounds a little fuzzy, but maybe it’s a bad connection.

“Tyler, how are you, sweetheart?”

“Grandma, it’s me, Tyler. I need help. It’s an emergency. I’m driving to visit Mom and my car broke down. A tow truck came, and I needed to pay for repairs, but my credit card was declined. Can I borrow your card? I’ll pay you back tomorrow, I promise.”

Poor Tyler, he’s a good kid. But his mom’s usually around; you wonder why he didn’t try calling her, so you ask.

“It’s supposed to be a surprise visit, Grandma, please don’t tell Mom I called you. Just read out your card number, please. I need your help.”

Have your spidey senses started tingling yet? Because they should have.

Grandparent Scam

This is a classic example of a common type of fraud, called a grandparent scam. In a grandparent scam, scammers will call pretending to need money for an emergency—it could be for lawyers’ fees, bail money, or perhaps they’re hurt and stuck in another country. They’ll ask open-ended questions like “Do you know whose calling?” to get you to offer the name of your grandchild and perhaps will use voice-altering technology or artificial intelligence to mimic your child’s voice. They might disguise the caller ID so it looks like the call is coming from your grandchild’s number. They’ll plead with you not to verify the information by telling their parents. And most importantly, they’ll prey on your emotions—because of course, you want to protect your loved ones.

These financial frauds aren’t rare. In 2023, grandparent (or other emergency) scams reportedly cost Canadians $11.3 million, according to the Canadian Anti-Fraud Centre. However, this number is likely much higher, as many people don’t report scams.

Protect Yourself:

  • Verify the story with another member of your family.
  • Save your grandchildren’s contact numbers on your phone, so you can hang up and call a number you know belongs to them.
  • Set up a code word for your family that you can ask each other in case of emergency.

What are some other types of financial scams you should be aware of?

Credit Card Scam

In a credit card scam, a scammer will call or text you, offering you a new credit card that might have great interest rates, tons of travel points, or some other interesting perk. They will ask you to provide lots of personal information, so they can set up the account for you.

Protect Yourself:

  • Protect your personal information, particularly your name, address, birthday and Social Insurance Number.
  • Ask for details: a reputable source won’t hesitate to provide details in writing.

Canada Revenue Agency Scam

You might receive a call from a scammer claiming to be an employee of the Canada Revenue Agency or Service Canada. They may claim you have an outstanding balance that needs to be paid, or that you’ve committed tax fraud. They will tell you that if you don’t resolve the problem immediately on the phone with them, you will be arrested, fined, or deported.

Protect Yourself:

  • Ask for the agent’s name and identification number. Then, call back at a verifiable number.
  • Remember: if you don’t call them, you never know who you are talking to.

Cryptocurrency Scam

Scammers know how to take advantage of the lack of regulation around cryptocurrency. They will establish what looks like a legitimate cryptocurrency. After bringing enough people in to purchase this new token, the scammers will take the cash they’ve collected, leaving victims with a worthless cryptocurrency token.

More Best Practices to Protect Your Finances

  • Don’t rush into fast decisions. Scammers want to rush you into deciding before you think it through. Be aware of high-pressure sales tactics, consider whether an offer is “too good to be true”, and don’t be afraid to say no.
  • If you’re thinking about investing, make sure the person or company is registered to sell investments or give advice, by searching on CheckBeforeYouInvest.ca.
  • If you think you have been the victim of a scam, stay calm. Gather all relevant information and get in touch with your financial institution and your local police department. Tell your family, friends, and co-workers about your experience: sharing your story may help prevent someone else from being a victim.

Sources:

https://cba.ca/article/grandparent-scam

https://www.ciro.ca/office-investor/avoiding-fraud-and-protecting-your-investments/how-protect-yourself-against-fraud-and-scams

https://moneymentors.ca/money-tips/common-scams-and-how-to-avoid-them/

https://www.osc.ca/en/investors/check-before-you-invest

https://www.rbcroyalbank.com/en-ca/my-money-matters/money-academy/cyber-security/understanding-cyber-security/the-grandparent-scam-what-it-is-and-how-to-protect-yourself/