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Common scams targeting immigrants in Canada: What you need to know to protect yourself

Anushka

January 20, 2025

Scams targeting immigrants in Canada

Key takeaways

Be cautious with personal information: Scams targeting immigrants in Canada often involve individuals or organizations requesting personal or financial details unexpectedly, so always verify their identity before sharing any information.

Research rental listings carefully: Avoid sending money for rental properties you haven’t seen in person, and always confirm the legitimacy of listings before making any payments.

Report scams promptly: If you fall victim to a scam, report it immediately to the Canadian Anti-Fraud Centre or the RCMP to protect yourself and others from further harm.

When newcomers arrive in Canada, adjusting to the local way of life often takes several months. During this period, many may not be fully aware of standard government procedures or the proper methods for securely sharing personal and banking information with organizations. Unfortunately, this lack of familiarity makes them vulnerable to various frauds and scams.

Scammers frequently exploit fear and uncertainty to manipulate people and steal their hard-earned money. This article aims to educate newcomers about common scams, highlight warning signs, and provide practical tips on protecting yourself and responding effectively if you become a target. By staying informed, you can better safeguard your finances and personal information.

Banking and tax scams targeting immigrants in Canada

Phishing e-mails or calls asking for banking information

You may encounter emails or calls that attempt to trick you into sharing personal or banking details. These messages often claim to be from a legitimate source, such as your bank, a subscription service, or even a government agency, and may mention an issue with your account. To resolve the “problem,” they direct you to click on a link leading to a fake website designed to resemble your bank’s official site. Once you enter sensitive details like your credit card number, bank account information, or online banking password, fraudsters intercept this data for their gain.

How to Spot and Avoid Phishing Scams:

  • Legitimate banks or government agencies will never ask for personal information they already have.
  • Be cautious of emails from unknown senders, especially those directing you to enter sensitive data on external websites.
  • Only share personal information with trusted, verified entities, and ensure the website is secure (look for “https” in the URL).

Fake calls claiming to be from the Canada Revenue Agency (CRA)

You might receive a call from someone pretending to be a CRA official, claiming that you owe taxes or are under investigation for fraud. Using an authoritative tone, they try to intimidate you into providing financial information or transferring money through wire transfers or prepaid cards. They may even threaten police action or arrest if you don’t comply.

How to recognize a genuine CRA communication:

  • The CRA will never request payment via e-transfer, bitcoin, or gift cards like iTunes or Amazon.
  • They will not use threatening language or demand immediate action.
  • They won’t email you links or forms requesting personal or financial details for tax refunds.

Credit or debit card fraud

Credit or debit card fraud happens when someone gains unauthorized access to your card or PIN, using it to make purchases or withdraw cash. This doesn’t always involve the physical theft of your card—cybercriminals can also access your card details online.

How to protect against card fraud:

  • Keep your PIN confidential and avoid sharing it with others.
  • Monitor your bank statements regularly for unauthorized transactions.
  • Use secure websites and trusted merchants for online purchases.

By staying alert to these common scams, you can protect your finances and personal information while navigating life in Canada.

How to avoid credit and debit card fraud

Protecting yourself from credit and debit card fraud requires vigilance and careful handling of your card and PIN.

  • Never share your card details or PIN: Avoid disclosing your card number and PIN over the phone or in emails, even if the request seems urgent or legitimate.
  • Cover your PIN: When entering your PIN at ATMs or point-of-sale counters, use your hand or body to shield the keypad. This prevents others, or hidden cameras, from capturing your information.
  • Be alert to unusual card readers: If the card reader appears tampered with or unfamiliar, or if a cashier takes an unusually long time processing your card, abort the transaction immediately and inform your bank.
Common scams targeting immigrants in Canada: What you need to know to protect yourself

Immigration, Refugees, and Citizenship Canada (IRCC) scams targeting immigrants in Canada

Scammers posing as government officials

Fraudsters may call pretending to be IRCC or other government representatives, often using fear tactics to extract money or information. They might claim you’ve made errors in your immigration paperwork, owe government fees, or face deportation. They may pressure you to pay immediately or share sensitive details, such as your passport number, SIN, or financial information.

Key facts about IRCC scams

IRCC or CIC officials will never:

  • Contact you by phone to demand fees or fines.
  • Use aggressive language or threaten arrest or deportation.
  • Request personal or financial details over the phone unless verifying existing information.
  • Push you to pay fees using prepaid credit cards, gift cards, Bitcoin, or wire transfers.
  • Send police to your home for unpaid fees.
How to handle suspicious IRCC calls
  1. Gather information and hang up: Politely ask for the caller’s name, then end the call.
  2. Verify authenticity: Contact the IRCC Call Centre at 1-888-242-2100 to confirm whether the call was legitimate.
  3. Report scams: If the call is fraudulent, report it to the Canadian Anti-Fraud Centre at 1-888-495-8501, via their website, or by email (info@antifraudcentre.ca).
  4. Notify authorities if defrauded: If you’ve lost money, report the incident to your local police.
  5. Address stolen SINs: If your Social Insurance Number (SIN) has been compromised, contact Service Canada at 1-866-274-6627 immediately.

Remaining cautious and informed is key to protecting yourself from these scams.

Compromised SIN

Scammers may contact you by phone or email, pretending to be government officials, claiming there is an issue with your Social Insurance Number (SIN). They might say your SIN is involved in criminal activity or fraud, or that it requires immediate verification. To make their claim seem credible, they may pressure you to share your SIN, date of birth, or other sensitive personal details, which can be used for identity theft.

What you should know about protecting your SIN
  • Secure your SIN: Always keep your SIN in a safe and secure place, and never share it casually. Only a few entities, like your employer, bank, or certain government agencies, legitimately require your SIN.
  • Landlords and SIN requests: While landlords may ask for your SIN, you are not legally obligated to provide it. Politely decline and offer other forms of identification if needed.
  • Avoid sharing personal information: Never share your SIN or other personal details over the phone, especially if the request comes from an unsolicited call.
  • Email and text message caution: Do not click on links in emails or text messages from unknown senders. These could lead to phishing websites designed to steal your information.

Being cautious with your SIN helps safeguard your identity and prevents unauthorized access to your financial or personal records.

Common scams targeting immigrants in Canada: What you need to know to protect yourself

Employment Scams

Job offer scams

You may receive unsolicited emails or phone calls from someone claiming to be a potential employer, offering you a job. However, before hiring you, they may ask you to pay a fee for training. After you pay the initial fee, they could introduce additional courses, each requiring more payments. Eventually, they may tell you that you didn’t pass the training and can’t be hired, leaving you out of pocket.

Fraudulent recruiters may also contact you, offering to guarantee you a job for a fee. However, in Canada, employers are responsible for paying third-party recruitment agencies, not job seekers. Be cautious of agencies asking for fees, as external recruiters cannot guarantee job placements.

Another scam to be aware of is the fake job offer scam. If you receive an offer from an organization you didn’t apply to or interview with, it’s likely a scam. These fraudsters may ask for sensitive personal information, such as your Social Insurance Number, bank account details, or even references’ information, putting both you and your contacts at risk.

Work-from-home scams

You may come across “work-from-home” advertisements online or via spam emails. These often seem enticing, offering roles like mystery shoppers for cheque-cashing services or high-paying writing/editing jobs. Initially, the positions sound legitimate, but scammers will ask for your bank account details for payments or request an upfront deposit to cover supposed “setup costs.” They may also send a counterfeit cheque for a larger amount than promised, asking you to send the excess back.

What you should know about employment scams

A genuine employer will never ask you to pay money for a job opportunity. Payment for training or recruitment should never be required upfront. Legitimate employers will evaluate your qualifications before extending an offer. Never share your personal or financial information with anyone you don’t know, and be cautious of offers that sound too good to be true.

How to verify a job offer’s authenticity
  • Check the company details: Confirm the name and contact details of the recruiter. Visit the official company website and call the organization directly to verify the position.
  • Ask for a formal contract: Request a detailed job contract that outlines the agreed terms and conditions.
  • Keep records: Always demand receipts for any payments made.
  • Verify job listings: Check the company’s official website or trusted job boards for the official listing of the job.

Being vigilant and doing your research before committing to a job offer can help protect you from falling victim to employment scams.

Housing Scams

Cheap accommodation in a prime location

When newcomers arrive in Canada, they often face challenges securing housing due to the lack of a credit history or employment letter. This makes them more vulnerable to rental scams. A common scam involves landlords who claim to be outside Canada and ask for money upfront, promising to send someone with the keys to the property.

These fraudsters advertise rental listings with tempting details—prime location, great amenities, and an unusually low price. They often post these listings on platforms like Kijiji or Facebook Marketplace. To make the listing appear authentic, they might use images from previous listings, properties for sale, or even short-term rental sites like Airbnb. Posing as the landlord, they claim to be abroad and unable to meet in person to show the property. After a few exchanges, they pressure you for money, starting with a security deposit, then the first month’s rent, and sometimes additional months for a “discount.” They may even claim that others are interested in the property, pushing you to act quickly.

What you should know about authentic rental listings

Never send money for a rental property you haven’t seen in person. If the rent is unusually low for the area, it’s likely a scam. Always visit the property or verify the listing through online platforms to ensure it’s real. If you can’t visit in person, use the internet to confirm the property’s details and look for actual images of the place.

Research the address to check for duplicate listings. A reverse image search can help you identify if the photos are from a different site or listing. Always schedule a showing and confirm that the landlord will be present. If you’re considering a new development, contact the builder directly to confirm ownership. Request a lease agreement and read it carefully before proceeding.

Common scams targeting immigrants in Canada: What you need to know to protect yourself

Miscellaneous Scams

Undelivered package scams

A common scam targeting newcomers in Canada involves receiving texts or phone calls about packages you either ordered or were sent. The text may claim you owe customs duties and urge you to make a payment through a link to release the delivery.

Alternatively, fraudsters may pose as customs or police officials, claiming that a package you sent or received contains illegal materials. They might threaten you with arrest or deportation, ultimately demanding payment of a fine via wire transfer, Bitcoin, or gift cards.

Prize scams

Another prevalent scam involves receiving a message or phone call informing you that you’ve won a prize, such as cash, a vacation, or even a car. To claim the prize, the scammer will ask for an advance fee to cover taxes or legal expenses.

What you should know about winning prizes

Legitimate prize or lottery companies will never ask you to pay any fees before you receive your winnings. If you’ve never bought a ticket for a foreign lottery, you cannot win it. Be cautious if anyone asks you to pay taxes or fees to the CRA in relation to lottery or sweepstakes prizes—this is always a scam.

How to report telephone, internet, or e-mail scams and fraud

If you or someone you know falls victim to a telephone, internet, email, or any other type of scam and accidentally shares personal or financial details, it is essential to act quickly. Contact the Royal Canadian Mounted Police (RCMP) or the Canadian Anti-Fraud Centre right away. You can reach them by calling their toll-free number at 1-888-495-8501 for assistance.

As you adjust to life in Canada, it’s crucial to stay informed about common scams so you can easily recognize when fraudsters are attempting to deceive you. If something seems too good to be true, it likely is. Familiarizing yourself with the steps to protect your information and knowing how to report scams in Canada will help you remain calm and collected if you ever find yourself in such a situation. Taking prompt action and understanding the fraud reporting process will provide you with the tools needed to prevent further damage and safeguard your personal details.

Conclusion

Navigating life in Canada as a newcomer comes with many opportunities, but it also requires vigilance to protect yourself from various types of scams. By staying informed about common fraud tactics and understanding how to report incidents, you can ensure your safety and avoid falling victim to scams. Remember, fraudsters often prey on new immigrants who may not be familiar with local customs and procedures. By recognizing red flags and taking proactive measures, you can build confidence in managing your finances and personal information securely.


Anushka

Senior Marketing Manager, Beacon