In 2022, Canadians reported losses exceeding $6.7 million due to ‘bank investigator’ frauds, highlighting the growing sophistication of such scams, according to the Canadian Anti-Fraud Centre annual report.
The Anti-Fraud Centre lists it in its Top 10 of frauds in the country. In 2022, there were 4,255 reports filed. The average dollar loss per victim was $6,924.
The numbers are staggering, growing and impacting Canadians from young and old who are falling victims to criminals who are posing as employees of their bank.
A deceptive scheme unfolds
Kelsey Potter, an eastern Ontario resident, became one of the many victims of this sophisticated scam. And it happened so quickly. In a flash, she was out thousands of dollars.
It began with text messages alerting her to suspicious purchases at retailer Sephora. Moments later, she received a call appearing to be from Scotiabank, inquiring about these transactions to see if they were fraudulent, she recently told CTV News.
The caller instructed Potter to reply ‘N’ to the messages to halt the charges and then to log into her Scotiabank app.
While on the phone, he asked, "Can you see those credits heading back into your account?" Potter confirmed, and the caller thanked her before ending the call.
That evening, Potter received an alert that her two-factor authentication code had been changed. Then, the same individual called back, convincing her to e-transfer nearly $10,000 into a ‘security account’ to safeguard her funds.
“He instructed me to make the transfers in order to keep those funds safe and then go into the bank immediately to rectify anything,” Potter told CTV News.
The next morning, Potter discovered an additional $9,600 missing from her accounts. She and her husband rushed to the bank, where they were informed that Scotiabank had not contacted them and would never request such actions. They realized they had been defrauded.
How to protect yourself from ‘bank investigator’ scams
To avoid falling victim to similar frauds, consider the following tips from TD Bank:
- Verify unsolicited communications: If you receive a call, text, or email claiming to be from your bank, do not provide any personal information immediately. Instead, inform the caller that you will call back. Use the official phone number on the back of your bank card or from the bank’s official website. Wait at least 10 minutes before making the outgoing call to ensure the previous call has disconnected.
- Be cautious of caller ID spoofing: Fraudsters can manipulate caller ID to display legitimate bank numbers. Do not trust the caller ID alone. Always verify by calling back using official contact information.
- Never share personal information: Banks will never ask for your PIN, passwords, or verification codes over the phone or via email. Do not provide this information to anyone, regardless of who they claim to be.
- Avoid remote access requests: Never grant remote access to your computer or smartphone to unsolicited callers. Legitimate institutions will not request this.
- Be wary of unusual requests: Banks will not ask you to transfer funds to external accounts for security purposes. If someone requests this, it’s a red flag.
If you suspect you’ve been a victim of fraud:
- Contact your bank immediately: Report the incident and request that your accounts be frozen to prevent further unauthorized transactions.
- Report to authorities: File a report with your local police service and the Canadian Anti-Fraud Centre (CAFC) at 1-888-495-8501 or online, even if no financial loss has occurred.
- Monitor your accounts: Regularly check your bank and credit card statements for any unauthorized transactions.
By staying vigilant and informed, you can protect yourself and others from falling victim to these deceptive schemes.
This article This Eastern Ontario woman got scammed out of $20,000 after falling victim to fraudsters claiming to work for Scotiabank — here’s how the scheme works and how to protect yourself ASAP originally appeared on Money.ca
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
