Title: Record-Breaking Financial Fraud Losses in Canada: RCMP Warns Public Ahead of Fraud Prevention Month

Background

Over the last decade, advances in technology have dramatically transformed the criminal landscape, making fraud easier, more common, and more sophisticated than ever before. According to data from the Canadian Anti-Fraud Centre (CAFC), a startling $530 million in victim losses were reported in 2022 - an almost 40% increase from the earlier record-breaking $380 million in losses reported in 2021. Unfortunately, it is estimated that only 5-10% of these incidents are reported.

Fraud Prevention Month

In March 2023, the Canadian Anti-Fraud Centre (CAFC), the Royal Canadian Mounted Police (RCMP), and the Competition Bureau come together for the 19th edition of Fraud Prevention Month. The focus of this year’s campaign is “Tricks of the trade: What’s in a fraudster’s toolbox?”. This initiative aims to expose the hidden methods, tools, and tactics used by fraudsters to deceive consumers and help Canadians protect themselves.

Prevention and Awareness

Despite the efforts of law enforcement, the public plays a crucial role in stopping these criminal activities. Education and awareness are the most potent weapons against fraud.

The CAFC, RCMP, and Competition Bureau encourage Canadians to get involved in preventing fraud by participating in their conversations on social media using the hashtag #FPM2023. Keep up-to-date with the latest fraud awareness strategies and scam alerts by following these organizations on platforms like Twitter and Facebook.

Reporting Fraud

Whether or not a fraud attempt results in a financial loss, it’s essential to report it. If you or someone you know has experienced fraud, contact your local police service and file a report with the Canadian Anti-Fraud Centre:

• Online: Report Fraud
• Toll-free: 1-888-495-8501

The CAFC also welcomes reports of potential scams and suspicious activities.

Quick Facts

• In 2022, the CAFC received 70,878 reports and identified 37,047 victims of mass marketing fraud.
• The top three most reported types of fraud were:
  • Phishing
  • Extortion
  • Personal Information Scams
• The top three frauds with the highest levels of reported victim losses were:
  • Investment scams, particularly those related to cryptocurrencies
  • Romance scams
  • Spear phishing

Expert Perspectives

“Fraud prevention begins with remaining vigilant and informed,” says Sergeant Derek Belanger of the RCMP’s Federal Policing - Integrated Cybercrime Unit. “Fraudsters are continually evolving their tactics, but we can make it harder for them by staying informed about the latest trends and scams.”

The CAFC advises individuals to:

• “Stop and Check” before responding to unsolicited emails, phone calls, or text messages that ask for personal or financial information or demand immediate payment.
• Conduct thorough research before purchasing from a business, charity, or opportunity.
• Be cautious of sharing sensitive information with strangers.