Fraud and phishing attacks have become more sophisticated, targeting Canadians through various platforms like calls, texts, and emails. One such case involves Daria and her six friends, who paid Bailey, a “travel hacker,” for a trip to Thailand. Bailey had provided helpful tips in a Clubhouse group, but after the group paid for their hotel rooms, Bailey never showed up. She canceled her trip just two days before the trip ended and never paid the hotel with the money the women had given her. Only one of the seven received a refund, and the others had to issue credit card chargebacks and contact the FBI. This example highlights how scams can be deceptive and manipulative.
Fraud is not limited to just one type of attack. Scammers often use social engineering tactics, manipulating victims by playing on their emotions. Maggie Cheung from the Canadian Bankers Association explains that cybercriminals utilize these tactics to trick people into responding quickly, often using fear or a sense of urgency. For example, a message claiming you owe money to the Canada Revenue Agency or that the CEO urgently needs a bank transfer can make someone act impulsively. These methods are so convincing that they can deceive even the most cautious individuals.
The Canadian Anti-Fraud Centre (CAFC) reports that Canadians lost a staggering $638 million to fraud in 2024. However, this number is likely much higher, as only 5% to 10% of fraud cases are reported. The reason scams and phishing attacks work is because they prey on our natural psychological responses. The fear of missing out, pressure to act quickly, or the desire to help someone in need makes us more vulnerable to manipulation.
These scams are not just a minor inconvenience—they can be financially devastating. The prevalence of fraud and its increasing sophistication means that everyone must be aware of the tactics used by cybercriminals and take steps to protect themselves from falling victim to these malicious schemes.