CHEAT SHEET
Dirty Rotten Scoundrels
How to evade the mad proliferation of urban swindlers among us
by sarah treleaven | MARCH 10, 2023
According to the Canadian Anti-Fraud Centre, Canadians lost $531 million to fraud in 2022, up from $379 million the previous year. In Toronto, anyone can be a victim, so police have launched a yearlong campaign to educate and protect citizens against the seemingly endless onslaught of grifts that fraudsters blast out every day via calls, texts, emails, letters and even gift cards. Here are some of the many ways to get taken for a ride in this city.
TYPES OF SCAMS
INVESTMENT SCAMS
Fake finance has proliferated dramatically these past few years. In terms of dollars lost, these scams are the biggest in Canada: $163.9 million in 2021, spread across roughly 3,000 victims. In December, the CAFC said that there had been an uptick in these grifts, mostly involving wire transfers to Panama, Costa Rica, Belize and Peru.
GRANDPARENT SCAMS
It takes a special kind of bottom feeder to prey on the elderly. Here, a fraudster calls a grandparent and poses as their grandchild, claiming they need emergency money sent to their account immediately. Often, the caring grandparent sends the money. Last year, this scam netted $118 million in stolen funds.
PROPERTY SCAMS
Here’s a new crime that seems tailor-made for Toronto’s chaotic real estate market: title fraud. Three people were recently busted for posing as the homeowners of a property while the actual owners were out of the country. They successfully sold the home and collected the proceeds—until police caught them when they tried to access the funds.
CATPHISHING SCAMS
The city’s second-biggest losses can be attributed to romance fraud. A criminal preys on a lonely single, asking them to wire money and, for one reason or another, never being able to meet in person. The most common lies include working on an oil rig and being in the military. In 2021, the CAFC reported 925 victims of catphishing and losses of more than $50 million.
TAXI SCAMS
A scammer approaches a passer-by and explains that he’s trying to pay for a cab but the driver—a second scammer—refuses to take cash. He requests to use the stranger’s card in exchange for the cash in his hand. When the mark says yes, the driver inserts the card into a point-of-sale machine that’s been modified to record the PIN. They then clean out the victim’s account.
APARTMENT SCAMS
While charging $2,500 for a one-bedroom apartment may seem like a scam in itself, it gets worse. These fraudsters sucker victims into paying a deposit to someone with no real connection to the property. They pretend to be a landlord or real estate agent, ask for the deposit, and then disappear with the money, leaving the victim both cash-strapped and apartmentless.
GIFT CARD SCAMS
A scammer steals gift cards and manipulates their bar codes, linking them to personal bank accounts before putting the cards back on the rack. When unsuspecting customers purchase the corrupted plastic, the funds are redirected to the scammer. In October, Toronto police confiscated 37,000 cards from a gang during a single bust.
IMMIGRATION SCAMS
Moving to a new country is hard enough, which makes immigration extortion particularly egregious. A scammer claiming to work for Ottawa alerts a victim that they are facing deportation—unless they send fees to a sketchy email account. Other scams involve fake Facebook and WhatsApp messages asking for visa application fees.
BUT WAIT, THERE'S MORE
How about a scammer posing as a CRA agent and asking for extra payments on a tax return? Or a psychic who claims that they can vanquish negativity from a victim’s cash before sending it back? Or a “duct cleaner” calling from India who colludes with a local company, resulting in faulty repairs, invalid warranties and little to no recourse? They’re all fair in the foul game of fraud.
THE STATS: TORONTO FRAUD IN 2022
598
Victims of identity fraud,
the city’s most common scam
2,089
Total reported
victims
3,241
Total fraud crimes
reported
$28,280,459
Yield of investment scams, the most
lucrative type of fraud
$41,810,230
Total dollars reported
stolen
FRAUD SQUAD: A Q&A WITH INSPECTOR PAUL RINKOFF, TORONTO POLICE SERVICE
Please explain your fraud-of-the-month campaign.
We’re working on public awareness because that’s the most effective way to reduce the number of victims. In January, we focused on the grandparent scam. February was romance scams, and March is taxi scams. We’re choosing them based on trends.
Why are these scams so successful?
Scammers exploit vulnerabilities. People feel ashamed about having been tricked and then are hesitant to report. But scammers target thousands of people. Victims shouldn’t feel alone.
What other trends are you seeing these days?
Increases in identity theft and fraud linked to phishing scams that ask for financial information. Once scammers have that, they can open accounts and transfer money or create fake identities.
Any really niche scams you’ve come across?
The puppy scam. Victims answer fake ads and send a deposit before the puppy is ready for pickup. Really, there is no puppy.
How can I avoid getting duped?
If it sounds too good to be true, it probably is. Protect your personal and financial information. If you receive a text or email from a company asking for that information, make sure it’s the legitimate company and not a fake. Don’t send personal credit card or banking details in an email. If you think you’re being tricked, stop communication, secure your assets and notify your financial institution. Change any passwords and make sure your electronic devices are protected.
This story appears in the April 2023 issue of Toronto Life magazine. To subscribe for just $39.99 a year, click here. To purchase single issues, click here