In a time when financial insecurity is high and many are looking for ways to safeguard their money or increase their wealth, fraudsters are taking advantage of that vulnerability.
Recently, three Canadians fell victim to a fraudulent scheme involving fake Guaranteed Investment Certificates (GICs), losing a combined $1.8 million. The scam, which has been gaining traction in recent months, has left the victims financially devastated.
Walter Yamca of Oakville, ON and Samantha Barnes, of Calgary, AB, lost $750,000 and $233,000, respectively, while an anonymous victim from Kitchener, ON, claims to have lost a staggering $900,000.
The individuals have since come forward to CTV News, and detailed how they spoofed into trusting too-good-to-be-true interest rates for GICs, warning others to be more vigilant of predatory actions online.
Falling victim to fraudulent internet search results
Last fall, Yamca took to Google in hopes of finding the "best GIC rates," and clicked on a website that purported to be PC Financial and called its number. He eventually asked his bank to transfer over $750,000, but the website ended up being fake, with Yamca being scammed the total amount he transferred over.
“The banks should confirm the receivers that they’re legitimate,” he told CTV.
Having heard about Yamca’s story on the news, Barnes also reached out to CTV to elaborate on her similar situation. She too had performed a similar internet search and also came across a legitimate-looking PC Financial page, but raised concerns once she realized her $233,000 had been transferred to a BMO account instead of a PC Financial one, with her bank wiring the funds anyway.
"I feel the banks really could have done a whole lot more to prevent this from happening.”
Speaking with the news outlet, Duff Conacher, a director at Democracy Watch, said banks should refund the customer’s money if they don’t catch the scam.
“The Bank Act should be changed to say unless a bank can prove that it went through the full process of due diligence, you’re paying the customer back,” he said.
Scammers are getting better at tricking citizens
These scams are becoming more sophisticated, with fraudsters using increasingly convincing tactics to manipulate victims.
These bad faith actors often use official-looking emails, fake websites and even pose as financial advisors to gain the trust of their targets.
As a result, experts recommend verifying the legitimacy of any offers through official bank channels before committing any funds, while also suggesting that consumers use established, reputable investment options and avoiding deals that seem suspiciously profitable.
This latest wave of scams serves as a stark reminder of the dangers of financial fraud and the importance of safeguarding personal savings.
Protecting Yourself from Fake Bank GIC Scams
To safeguard your investments and personal information, recognize the following red flags:
Unsolicited contact: Be wary of unexpected calls, emails or messages offering investment opportunities, especially if they pressure you to act quickly Too-good-to-be-true returns: High or guaranteed returns with little to no risk are classic signs of fraudulent schemes Suspicious communication: Watch for generic greetings, urgent language or requests for personal information Unusual payment methods: Be cautious if asked to transfer funds to unfamiliar accounts or via unconventional methods
With scammers looking to take advantage of vulnerable consumers, adopting better cyber hygeine online can help thwart future incidents of financial loss, this includes:
Verifying legitimacy: Contact the financial institution directly using official contact information to confirm any investment offers Securing personal information: Avoid sharing sensitive data like Social Insurance Numbers, account details or passwords over unsecured channels Use multi-factor authentication: Enable additional security layers on your financial accounts to prevent unauthorized access Be skeptical of unsolicited offers: Treat unsolicited investment opportunities with caution, especially those promising high returns Monitor financial statements: Regularly review bank statements and credit reports for unauthorized transactions
Be sure to report any suspected fraud
If you suspect you’ve encountered a fraudulent investment opportunity, be sure to contact your financial institution or financial advisor right away to secure your accounts. You should file a complaint with local law enforcement and national fraud reporting agencies. Additionally, it is crucial to to consult consumer protection agencies, such as the Canadian Anti-Fraud Centre for guidance and support.
This article A combined $1.8 million in losses: Victims share their experience with GIC fraud — how to protect yourself from similar scamsoriginally appeared on Money.ca
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
