The Ontario Provincial Police (OPP), Canadian Anti-Fraud Centre (CAFC) and Royal Canadian Mounted Police (RCMP) have launched a fraud prevention campaign to raise awareness about the significant increase in emergency-grandparent scams targeting Canadian seniors.
In 2022, the CAFC received fraud reports totaling a staggering $530 million in victim losses. This was nearly a 40 per cent increase from the 2021 unprecedented $380 million in losses.
Just last week, the Smiths Falls Police Service posted a video of local grandparents being scammed out of $8,000.
Fraudsters target anyone and everyone, particularly the vulnerable and seniors. In 2022, more than $9.2 million was reported lost to emergency scams, according to the CAFC. This was a drastic increase from $2.4 million in 2021.
Reports from residents indicate the five provinces most impacted in 2022 were:
· Ontario – over $5.4 million in reported losses;
· Alberta – over $1.1 million in reported losses;
· Quebec – over $732,000 in reported losses;
· British Columbia – over $322,000 in reported losses;
· Manitoba – over $313,000 in reported losses.
It is estimated that only 5-10 per cent of victims report scams and fraud to the CAFC or law enforcement.
What is an emergency scam?
Emergency scams, including variations called “grandparent scams”, use urgency and the manipulation of emotions to extort money from victims. In these scams, fraudsters cold call seniors, on landline phones, claiming to be a grandchild, family member, law enforcement officer or lawyer calling on behalf of their loved one. They’ll say that the person’s loved one was involved in an emergency situation, such as a collision, charged by law enforcement, legal peril, being sick or injured, etc. They demand the senior provide payment immediately for supposed bail, legal fees, fines or other amounts “owed” to stop the family member from going to jail or to get them released from custody. This is a scam.
The fraudsters isolate the victims by informing them that there is a court-imposed gag order, and they’re forbidden from discussing the matter. The victims are directed to attend their financial institution to withdraw the requested amount in cash. The fraudsters will then send someone to pick it up from the victim’s home or have the victim send the money via courier services. There have also been reports of victims paying with cryptocurrency.
Story by Grant Deme
Comments