National Post (National Edition)
Knowledge is protection: The best defence against falling victim to fraud is awareness
With fraud targeting older adults on the rise, an RBC expert points to awareness as being critical for staying safe
Knowledge isn’t just power when it comes to preventing fraud. It’s protection — particularly for Canada’s older adults who are often more at risk of being victimized.
“Ultimately, anyone can fall prey to fraud, but we do know seniors are often more targeted than other demographics,” says Kevin Purkiss, vice-president of fraud management at RBC.
He points to recent RBC research that found 86 per cent of respondents worried fraudsters will increasingly target older adults as they are online more today than before the pandemic. At the same time, other research, including from McMaster University, points to older adults bearing certain traits — typically having more savings and distinct age-associated characteristics — that put them at risk.
Although increased use of online banking, payment and social media among other activities put everyone more at risk, many seniors are new to these platforms and may be less aware about online scams, Purkiss explains.
“That’s why awareness is the best defence against fraud.”
In almost every instance of fraud, victims fail to identify the red flags universal to most scams.
“Common characteristics include criminals making scams seem as though urgent action is required, and they will often tie their pitch to victims’ emotions to prompt action before reflection,” Purkiss says. “And then there is secrecy — coaching victims to not tell anyone else.”
In other words, scammers rush victims with compelling stories tugging at their heartstrings or preying on their fears, while swearing them to secrecy so they cannot tell anyone else who may question what they’re doing.
And make no mistake: scammers are good at what they do.
In 2022, over 56,000 Canadians fell victim to fraud totalling $530 million in losses, according to the Canadian Anti-Fraud Centre.
And it’s getting worse as losses mount annually, Purkiss says, pointing to losses being about $384 million for all of 2021.
Yet the more quickly older adults, or anyone, can identify schemes like the grandparent’s scam, the less likely they will become victims.
In this particular scam, older adults receive a call or text from a supposed adult grandchild claiming to be in trouble — often with the authorities in a foreign country — and they require money being wired to an entity — i.e. a lawyer or police officer — to pay a fine or legal fees as soon as possible.
“Often the imposter grandkid quickly hands the phone over to an attorney or some so-called representative before the victim can really recognize who it is on the phone,” Purkiss says. “Then, they quickly say all this has to be kept confidential like, ‘Don’t tell my parents! You’re the only one who can help!’ ”
Older adults who fall victim tend to act quickly out of love for their grandchild and only after sending money do they then try to verify if the story is true which they find out, it isn’t, Purkiss adds.
Another common scam is the investigation scam whereby fraudsters pretend to be a bank or police investigator trying to track down a criminal, requiring the senior to help in the investigation by providing funds as evidence to help catch the criminal.
“It’s important to remember, a legitimate investigator would never ask you to participate in an undercover fraud investigation.” Again, a common hallmark is secrecy, Purkiss notes. “They often say, ‘Don’t tell anyone that this is happening.’”
In many of these instances, scammers contact victims by phone, and so one defensive measure if a call feels suspicious is to hang up. Then, for example, you can try to verify the call from your bank by calling the number on the back of your debit card, Purkiss says.
More and more fraud, however, is committed online, allowing criminals to cast a wider net via social media, text and email.
The common online fraud is phishing, involving a fake email, text or some other message, claiming to be from your financial institution, Canada Revenue Agency or any website where you have an account.
“It often has an embedded link, and tells you there’s a problem with your account, but the whole idea is to get you to click on the link supposedly taking you to a legitimate website, only it’s a fake website.”
Purkiss further notes that RBC will never ask for your pin or password to sign into your account.
“What phishing emails are trying to do is get you to log in with your username and password or enter your credit or bank card details so scammers can steal that information.”
Like other fraud, the goal is prompting a quick response based on emotion — i.e. fear of owing taxes or the excitement of receiving a financial windfall — in which the victim does not take time to consider the message’s authenticity.
Indeed, fraudulent pitches can be convincing, mimicking actual emails you would receive from your bank, government agencies or businesses.
As a result, it’s critical that anyone who falls victim should not stay silent.
Rather, they should contact their financial institution and police immediately.
“People are often embarrassed so they can be very hesitant to tell anyone,” Purkiss explains.
“Remaining silent is what keeps fraud going, so the more we talk about and report it, the better off we all will be in stopping it.”