Have you ever thought that only a small fraction of the fraud cases happening around you are actually reported? According to data from the Canadian Fraud Centre (CAFC), Canadians lost more than $704 million CAD to fraud in 2025, and cumulative reported losses have exceeded $2.4 billion CAD since 2022. However, the CAFC emphasizes that this represents only a small fraction of actual damages, as only 5% to 10% of actual fraud cases are reported.
In other words, this figure of over 700 million is just the tip of the iceberg. Most victims, out of shame, not knowing where to complain, or simply unaware that they have been scammed, silently swallow their losses. If you think “fraud is far removed from my life,” this article might change your mind. The truth behind the prevalence of scams: the hidden dangers behind the data
Let’s look at the specific figures for 2024. The CAFC recorded a total of CAD 643.7 million in reported losses that year, almost four times that of 2020. The top three types of scams causing the greatest financial losses were: investment scams (accounting for 49% of total losses in 2024, reaching CAD 313 million), romance scams, and job scams. In terms of the number of cases, identity theft was the most prevalent, with 9,683 reported throughout the year.
These figures have one thing in common: they were not caused by technological vulnerabilities, but rather by exploiting human vulnerabilities—trust, fear, greed, and loneliness. Victims are not randomly distributed.
According to publicly available data compiled by Discreet Investigations, Canadians aged 60 and over, although making up only 23% of the total population, account for 40% of all fraud losses nationwide, with an average loss of $21,604 per elderly victim. Why are older people more likely to be targeted? One reason is that retirement savings are often their largest asset, making them a prime target for scammers. Another reason is that many older people are unfamiliar with online verification methods and are more easily overwhelmed by the perceived authority of “official calls.” If you have parents or elderly relatives living alone in Canada, this 40% figure is worth taking seriously. In May 2018, a Chinese man in Vancouver fell victim to an elaborate scam and lost CAD 340,000.
It all started with a phone call “from the Chinese Consulate.” The caller claimed she was involved in international money laundering and sent her a forged arrest warrant with her driver’s license photo. In a state of extreme fear, she was instructed to wire funds to Hong Kong in instalments over two weeks through four banks—TD Bank, Royal Bank (RBC), BMO, and Bank of China. The largest single transfer was a staggering CAD 178,000, and the first transfer via RBC was CAD 60,000.
The key detail is that the scammers also taught her to lie to the tellers at each bank, claiming it was a normal transfer to a “business partner”. After the money was transferred, the bank’s response was: no liability. The reason given was that the customer authorized the transfer and signed the wire transfer agreement but failed to truthfully disclose the purpose of the funds. Under the current account opening agreement and wire transfer agreement framework, banks typically do not assume liability for transactions actively authorized by the customer.
This case was later reported by CBC Go Public, sparking widespread discussion. Consumer advocates and criminologists pointed out that banks should be the “last line of defence” in protecting customers—they have a responsibility to conduct thorough questioning when wire transfers are unusually large or when customers exhibit signs of coercion. However, in actual litigation, banks often successfully defend themselves by arguing against liability clauses signed by customers. The same batch of reports also mentioned another case: a Canadian retiree whose transactions were clearly suspicious were processed by the bank, resulting in the loss of over CAD 800,000.
In addition, dozens of other customers had their funds intercepted during routine e-transfers, with the banks uniformly stating that the responsibility lay with the customers and no compensation would be offered. These three cases point to the same reality: within the existing legal agreement system of banks, victims who voluntarily remit money are often the ones who have the most difficulty in protecting their rights.
Once you understand the risks, there are four specific things you can do right now. First: If you receive a call from an “authoritative organization” requesting a transfer, hang up immediately. Consulates, the CRA (Canada Revenue Agency), police, and banks—none of these organizations will proactively call you asking for urgent money transfers, let alone threaten your arrest. If you receive such a call, do not make any decisions while emotionally charged.
Hang up, find the official number of the organization yourself, and call to verify. Second: Tell the truth to bank tellers, always tell the truth. This is crucial from a legal perspective. One of the standard tactics of scammers is to teach you to lie to the bank teller—for example, “This is a transfer to a friend” or “This is a business payment.” Once you sign the wire transfer agreement and state the false purpose, the bank has a complete alibi, making your path to protecting your rights extremely difficult.
If you feel confused or scared when making a transfer at the bank, please tell the teller your concerns directly. Third: Protect your account password and use two-factor authentication. When reviewing bank fraud cases, OBSI focuses on verifying how the account was accessed and whether the transactions correctly used a PIN or two-factor authentication (2FA). Never give your PIN to anyone, including callers claiming to be from bank customer service. Fourth: Verify the platform’s qualifications before investing. Investment scams accounted for 49% of total fraud losses in Canada in 2024, making it the most devastating single type of fraud. Any online investment platform or cryptocurrency project claiming “stable, high returns” must be verified by the official Canadian securities regulator before any investment decision is made. After being scammed: Legal framework and rights protection process
If losses have already occurred, the first step is to calmly understand the legal reality. Regarding liability allocation, the Canadian banking system distinguishes between two scenarios. The first is unauthorized transactions—account breaches, stolen card transactions, or losses occurring even after the account has been reported lost. In these cases, consumers are usually compensated, but must prove they did not intentionally disclose their PIN.
The second is transactions authorized by the consumer—i.e., cases where the consumer actively transfers money after being scammed. According to the terms of most account opening agreements and wire transfer agreements, the customer bears full responsibility for transactions authorized by themselves, and the bank typically does not compensate. Furthermore, it’s crucial to clarify one point regarding the CDIC (Canadian Deposit Insurance Corporation): the CDIC absolutely does not cover losses caused by fraud, theft, or cybercrime.
The CDIC is a free, automatic insurance policy that protects deposits in the event of a member bank’s bankruptcy, with a maximum payout of $100,000 CAD per deposit class. The CDIC has absolutely no responsibility for money lost to fraud. If you believe the bank was negligent in handling your case, here is the standard four-step process for protecting your rights: Step 1: File a complaint with the bank branch. Compile all transfer records, communication records, and police reports, and contact a bank representative or branch manager to formally file a complaint. Banks typically have a 1-2 level complaint escalation mechanism. Step 2: Request a final written response from the bank.
Under federal regulations, federally regulated banks have a mandatory 56-day period from the date you file your written complaint to process it and provide a final written response (Source: OBSI Complaints Process). Step 3: Upgrade to OBSI (Bank Services and Investments Ombudsman). If the bank does not provide a response within 56 days, or if you are dissatisfied with the bank’s final reply, you must submit an application to OBSI within 180 days (6 months) of receiving the final response. OBSI will review your case free of charge and independently.
If the bank is found to be at fault, OBSI may recommend compensation of up to CAD 350,000. However, please note that OBSI’s recommendations are not legally binding. Step 4: File a lawsuit in court. If OBSI mediation fails, or the bank refuses to enforce OBSI’s compensation recommendations, you still retain the right to pursue legal action—using OBSI services will not disqualify you from suing. For more information on the OBSI complaint process, please visit the official OBSI complaint page. For guidance on federal-level bank complaints, please refer to the Bank Complaints Guide on Canada.ca. Your vigilance is the strongest defence.
The risk of fraud objectively exists, and the law offers extremely limited protection to victims who voluntarily send money. CDIC doesn’t care about the money lost, and OBSI’s advice is not enforceable—consumers who complete the entire process may still not get a penny back. This isn’t defending banks, but rather saying that under the existing legal framework, prevention is far more important than seeking redress. In any “emergency” situation involving requests for money transfers, a second’s extra hesitation could save you a lifetime of savings.