What to do if you have been deceived?
Being a victim of fraud in Canada can be a deeply traumatic experience that affects not only your financial situation, but also your emotional well-being and trust in others. Every year, Canadians lose hundreds of millions of dollars to various types of fraud, with the Canadian Anti-Fraud Centre estimating that only 5-10% of victims report such incidents to law enforcement. This means that the true extent of the problem may be ten times greater than official statistics suggest. In 2023, Canadians lost over $569 million from confirmed cases of fraud, highlighting the critical importance of knowing the right steps to take to recover from such an incident.
It is important to understand that fraud can affect anyone, regardless of age, education, or financial status. Modern fraudsters are using increasingly sophisticated methods, including artificial intelligence to create convincing voice messages and deepfakes to imitate well-known individuals or organizations. In addition, victims of primary fraud often become targets for “recovery scams” — secondary scams where fraudsters promise to return lost funds for a fee. In 2023, Canadians lost more than $1.6 million to such secondary scams, more than double the previous year's figure.
Immediate action after detecting fraud
The first hours and days after discovering fraud are critical for minimizing losses and protecting yourself from further attacks. The most important thing is to stay calm and not panic, although this can be very difficult in such a stressful situation. Panic decisions often lead to additional mistakes or make the victim more vulnerable to repeated attacks.
The first step is to immediately cease all contact with the fraudsters. If you receive phone calls, emails, or text messages from individuals who may be involved in the fraud, do not respond to them and block all channels of communication. Fraudsters often try to contact victims again, posing as law enforcement or financial institutions to obtain additional information or money.
The next critical step is to collect and preserve all evidence of fraud. This includes emails, text messages, phone call recordings (if available), bank statements, checks, contracts, and any other documents related to the incident. If the fraud occurred in person, avoid touching any documents that the fraudsters may have touched and store them in plastic bags or covers for possible fingerprint analysis.
Create a detailed chronological log of events, including dates, times, names of contact persons, and a detailed description of what happened. This log will be invaluable when communicating with law enforcement, financial institutions, and other agencies. Include all contact information used by the fraudsters—phone numbers, email addresses, websites, and social media accounts.
Protecting your financial accounts and personal information
As soon as you discover the fraud, contact all financial institutions where you have accounts that may have been compromised. Report the incident and request that all suspicious transactions be blocked immediately. Most Canadian banks have 24-hour fraud reporting lines:
- TD Canada Trust — 1-866-222-3456
- RBC Royal Bank — 1-800-769-2511
- BMO — 1-877-225-5266
- Scotiabank — 1-800-472-6842
- CIBC — 1-800-465-2422
Banks may freeze your accounts as a precautionary measure, which may cause temporary inconvenience, but is necessary to prevent further losses. Ask your bank if they can recall or stop suspicious transactions, especially if they are still being processed. Some electronic transfer and payment systems have mechanisms to quickly revoke funds within a certain period of time.
Immediately change all passwords for online banking, credit cards, email, and social media, especially if you suspect that your personal information has been compromised. Use strong, unique passwords for each account and enable two-factor authentication wherever possible. Avoid using SMS for two-factor authentication, as SIM swapping is becoming an increasingly common type of attack.
Contact both Canadian credit bureaus — Equifax Canada (1-800-465-7166) and TransUnion Canada (1-800-663-9980) — to place a fraud alert on your credit reports. This is a free service that alerts lenders to the need for additional verification of your identity before issuing new credit. A Fraud Alert remains active for six years, and in some provinces, lenders are legally required to contact you before extending credit.
Notifying law enforcement
Filing a police report is a critical step, even if you think the chances of getting your money back are slim. A police report creates official documentation of the incident, which may be necessary for insurance claims, chargeback procedures with banks, and future legal action. Most police services in Canada accept fraud reports online, by phone, or in person.
For Ontario residents, if your local police service is the Ontario Provincial Police, use the station locator to find your nearest station. When filing a report, have all supporting documentation on hand, including receipts, correspondence, financial documents, and a detailed timeline of events. The police may request a detailed incident report, so it is important to be prepared to provide all available information.
Be sure to obtain a case or report number from the police and the contact information of the officer in charge in case you have additional information. Police investigations of fraud can be complex and time-consuming, so it is important to be patient and stay in touch with investigators to get updates on the status of the case.
In parallel with filing a report with your local police, report the incident to the Canadian Anti-Fraud Centre (CAFC) through their online reporting system or by calling their toll-free number 1-888-495-8501. The CAFC operates Monday through Friday from 10:00 a.m. to 4:45 p.m. Eastern Time and provides services in English and French. Even if you have not lost any money but have been the target of a fraud attempt, it is still important to report it to the CAFC.
Specialized Reports
Depending on the type of fraud, additional reports to specialized agencies may be necessary. If the fraud involved taxes or someone posing as a representative of the Canada Revenue Agency, report it directly to the CRA through their online form or by phone. The CRA has specialized procedures to combat tax fraud and can place protective measures on your account immediately during the call. For fraud related to immigration or if someone has impersonated a representative of Immigration, Refugees and Citizenship Canada, contact the Client Support Centre and report the incident. International students who have been victims of document fraud without their knowledge may be eligible for temporary residence permits and assistance in regulating their status.
If the fraud occurred through social media, report it directly to the platform administrators using the “Report Abuse” or “Report an Ad” features. Facebook, Instagram, Twitter, and other platforms have dedicated teams to combat fraud and can block fraudsters' accounts or remove fraudulent content.
If your mail has been redirected without your permission as part of a personal data theft scheme, contact Canada Post to report the incident. Also, notify all your service providers (phone, electricity, gas, water) of the possible identity theft so they can take preventive measures on your accounts.
Recovering from identity theft
If the fraud involved identity theft, the recovery process can be particularly difficult and time-consuming. Identity theft can affect your credit history for years, so it is important to take all necessary steps to protect and restore your creditworthiness.
Order detailed credit reports from both credit bureaus and review them carefully for accounts you did not open, credit inquiries you did not make, or incorrect personal information. Any unrecognized accounts or activity may indicate that someone is using your identity to obtain credit.
If you find fraudulent activity on your credit report, contact the creditors directly to report the potential fraud and request that the unauthorized accounts be closed. You may need to sign an affidavit or submit a written statement that you did not open these accounts. The process of disputing fraudulent activity can take several months, but credit bureaus are required to investigate all valid disputes.
Consider placing a credit freeze on your credit files, which prevents any new credit accounts from being opened without your written permission. This is a more severe measure than a fraud alert, but it provides the maximum level of protection against future identity theft.
Financial recovery and refund options
Although it is not always possible to recover all funds lost to fraud, there are several mechanisms that can help victims obtain compensation. If the fraud occurred using a credit card, contact the card issuer to initiate a chargeback. Visa, Mastercard, and American Express have zero liability policies for unauthorized transactions, which means you will not be held responsible for fraudulent purchases.
The chargeback process usually takes 30 to 90 days, during which time the bank investigates the transactions and may temporarily refund the disputed amounts to your account. It is important to file a chargeback as soon as possible, as most banks have strict deadlines for such requests — typically 60 to 120 days from the date of the transaction.
For debit cards, protection may be more limited, but many Canadian banks still offer some level of fraud protection. The Electronic Funds Transfer Act in various provinces sets minimum consumer protection standards for electronic transactions, including limits on liability for unauthorized debit transactions.
In criminal cases, the court may issue a restitution order requiring the convicted fraudster to compensate the victims for their losses. The Canadian Victims Bill of Rights gives all victims of crime the right to ask the court to consider a restitution order when sentencing. However, restitution can only cover easily calculable financial losses and does not include compensation for pain, suffering, or emotional distress.
Emotional Support and Counseling
Being a victim of fraud can be a deeply traumatic experience that affects self-esteem, trust in others, and overall psychological well-being. Many victims experience shame, anger, anxiety, and depression after such an experience. It is important to remember that being a victim of fraud is not your fault, and these feelings are a normal response to a traumatic experience. A variety of support services are available to victims of crime in Canada. Each province has Victim Services programs that provide free counseling, emotional support, and practical assistance to victims of crime. These services are available to all victims, regardless of whether the crime was reported to the police or resulted in the arrest of a suspect.
211 Ontario is a free, confidential service that quickly connects people with social services and community programs across the province. You can call or text 2-1-1 or email [email protected] for information about local support resources.
Many employers have Employee Assistance Programs (EAP) that can provide free counseling for a limited number of sessions. Check with your employer, social services, or union to see if such a program is available to you. The cost of psychological support is covered by the Ontario Health Insurance Plan (OHIP) when a referral is made by a healthcare professional, such as a family doctor, to a psychiatrist.
Protection from repeat attacks and recovery scams
Victims of primary fraud often become targets for secondary scams known as recovery scams. Fraudsters keep lists of previous victims and may sell these lists to other criminals. Recovery scammers contact victims by phone, email, social media, or even in person, promising to help recover lost funds for a fee.
These scammers may impersonate representatives of the Canadian Anti-Fraud Centre, police, government agencies, financial regulators, or investor protection organizations. They may know detailed information about the initial fraud, including your personal information and the amount of money lost, which makes their offers more convincing.
Never pay upfront fees for recovery services, especially if payment is requested in cryptocurrency, gift cards, wire transfers, or other cash methods. Cash and cryptocurrencies are difficult to trace, making them a favorite tool of fraudsters. Legitimate lawyers and refund agencies typically work on a commission basis for successfully recovered funds and do not require advance payments.
Be skeptical of any unexpected contacts offering assistance. Don't be afraid to seem rude by hanging up, not responding to messages, or asking for identification. If someone claims to represent a legitimate organization, call that organization directly at the number on its official website to verify.
Long-term protection strategies
After recovering from the initial fraud, it is important to develop long-term strategies to protect yourself from future attacks. This includes regularly monitoring your financial accounts and credit reports. Set up automatic alerts on all bank and credit accounts for any activity, including the smallest transactions.
Order free credit reports from Equifax and TransUnion at least once a year and review them carefully for any suspicious activity. Some credit cards and banks also offer free credit monitoring as part of their fraud protection services.
Stay up to date on new types of fraud by signing up for alerts from the Canadian Anti-Fraud Centre, your bank, and other financial institutions. Fraud schemes are constantly evolving, and what worked in the past may not protect you from new methods.
Consider using specialized identity protection services, which may include dark web monitoring, data breach alerts, and assistance with identity theft recovery. While these services cannot guarantee complete protection, they can provide an extra layer of security and peace of mind.
Legal options and professional assistance
In some cases, it may be advisable to seek legal assistance, especially if the losses are significant or if the fraud involved a breach of contractual obligations. Lawyers specializing in consumer protection can help you evaluate your options for civil action against fraudsters or third parties who may have facilitated the fraud.
Legal Aid offices in each province may provide free or low-cost legal services to eligible individuals. Eligibility criteria are typically based on income level and the nature of the legal problem. Even if you don't qualify for full legal aid, many Legal Aid offices offer free legal advice or can refer you to lawyers who offer services at reduced rates.
For complex cases of securities or investment fraud, consider contacting the Canadian Investment Regulatory Organization (CIRO) or the appropriate provincial securities commission. These organizations have special procedures for investigating investment fraud and may have investor compensation funds for certain types of losses.
Criminal fraud cases can take months or even years to resolve, and there is no guarantee of successful prosecution or recovery. However, participating in the criminal process may increase your chances of receiving restitution and help prevent future victims of the same fraudster. Victim Services coordinators can help you understand the criminal process and your rights as a victim of crime.
Conclusion
Being a victim of fraud in Canada is a serious situation that requires quick, organized action to minimize losses and protect against future attacks. Although the recovery process can be difficult and emotionally draining, Canada has a well-developed network of support for victims of crime and legal mechanisms to assist in recovery. The most important thing is to not be afraid to ask for help and to remember that anyone can become a victim of fraud, and it is not a reflection of your intelligence or prudence.