Canadians Lose $638M to Fraud in 2024 Amid Rising Scams

UPDATE: Canadians are reeling as new reports confirm that fraud losses have surged to over $638 million in 2024, a staggering increase that highlights a growing financial crisis. Cases of fraud have nearly doubled over the past decade, alarming experts who warn that the situation is likely to worsen.

Technology expert Carmi Levy states, “If it hasn’t affected you as an individual, it’s probably affected somebody that you know, and it’s only a matter of time before they come for you.” The Canadian Anti-Fraud Centre (CAFC) reveals that reported fraud losses exceed $2 billion since 2021, with only an estimated 5% to 10% of fraud cases being reported.

Impersonation fraud is currently one of the fastest-growing scams, according to a February release from the Competition Bureau. This alarming trend is illustrated by the experience of Claudine Jeanson from Granby, Quebec. In June, Jeanson was contacted about an item she was selling on Facebook Marketplace. What started as a potential sale quickly spiraled into a disastrous scam.

She received a call from someone posing as a representative from the Royal Bank of Canada (RBC), claiming suspicious activity on her account. “He said, ‘Listen, ma’am, there’s something very suspicious going on with your account,’” Jeanson recalled. Believing the call was legitimate, she was instructed to send $10,000 to a supposed secure account, which turned out to be a scam.

Jeanson’s heart sank when she realized the potential loss. Despite RBC’s assurances that they investigate fraud on a case-by-case basis, they informed her that she would not be reimbursed, citing responsibility under the bank’s Electronic Access Agreement. “I cried. I felt guilty. I said to myself, ‘How could this happen to me? I’m so careful,’” she expressed, emphasizing the emotional toll the incident took on her.

The RBC stated in a written statement that they take client concerns seriously and remind customers that representatives will never ask for sensitive information or request money to secure an account. The bank’s reluctance to provide specific details on their fraud prevention measures raises concerns among customers like Jeanson, who feel abandoned in the face of such scams.

Levy is calling for stronger regulations and clearer guidelines for financial institutions to better protect consumers. “It’s not enough to say after a fraud has occurred, ‘Well, you should not have handed that information over,'” he stated. “The financial services industry needs to be far more proactive in educating their customers.”

The CAFC reported that approximately 34,642 victims reported fraud in 2024. Jeanson’s experience is just one of many, reflecting a growing trend that puts countless Canadians at risk. Levy urges individuals who have been scammed not to give up, emphasizing the need for greater accountability and consumer protection from financial institutions.

As the crisis unfolds, authorities continue to warn that the rise of artificial intelligence is amplifying the threat of fraud, making it imperative for consumers to stay vigilant. With scams becoming increasingly sophisticated, the responsibility to recognize and report these threats falls heavily on individuals and financial institutions alike.

Stay tuned for more updates on this developing story as we continue to monitor the alarming rise in fraud cases across Canada.