Financial scam precautions are failing

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Financial scams are on the rise so it's best know how to avoid becoming the victim of a financial scam.

Despite countless warnings, public awareness campaigns, and an ever-growing library of resources on how to avoid financial scams, the number of victims—particularly seniors in Canada—continues to rise.

It's a troubling paradox—we know more than ever about how scams work, yet more people are losing money to them. Clearly, our current precautions aren’t enough. So, why are these protections failing, and what can Canadians do to truly safeguard themselves and their loved ones?

The changing face of financial scams

Financial scams have evolved. Today’s fraudsters are sophisticated, organized, and relentless. They exploit human psychology, social engineering tactics, and current events to create highly convincing narratives. Whether it’s a fake Canada Revenue Agency call, a phishing email from a bank, or a grandparent scam involving a panicked “grandchild” in trouble, modern scams are designed to create urgency, fear, or excitement—causing people to act before they think.

Technology has played a major role in this evolution. Artificial intelligence now enables scammers to mimic voices, generate lifelike videos, or create convincing messages from trusted institutions. Robocalls and spoofed phone numbers make fraudsters seem legitimate. As these tactics become harder to detect, it’s easy to see why even savvy individuals fall victim.

Why current recautions aren’t enough

Most fraud prevention advice boils down to a few common tips: don’t click suspicious links, don’t share personal information, and don’t send money to people you don’t know. While this advice is helpful, it’s often too simplistic or vague—and it assumes a level of tech literacy and confidence that not all Canadians, especially older ones, have.

For seniors, many of whom didn’t grow up with the Internet or smartphones, recognizing a scam can be much harder. Fraudsters know this and often target them specifically. Cognitive decline, loneliness, and unfamiliarity with digital platforms make some older adults particularly vulnerable.

Moreover, scams are increasingly personalized. Criminals may mine social media, data breaches, or online forums to craft custom-tailored attacks. In such cases, standard advice like “don’t trust strangers” falls short—because the scammer may not feel like a stranger at all.

Steps to truly protect yourself and loved ones

To combat these increasingly clever and dangerous scams, Canadians—especially seniors—need more than general advice. They need proactive, practical, and ongoing protections. Here’s what can help:

1. Build a trusted circle of support—Seniors should have one or two trusted people, such as an adult child, financial advisor, or close friend, they can run things by before making financial decisions. Encourage the habit of saying, “Let me talk to someone and get back to you.” Scammers thrive on urgency. Slowing down can make all the difference.

2. Use call and email screening tools—Caller ID spoofing is rampant. Services like Call Control, Hiya or features from your phone provider can help filter out known scam calls. Similarly, enable email filters and spam protections to reduce exposure to phishing.

3. Freeze credit and set up alerts—While Canada doesn’t yet offer full credit freezes like the U.S., you can still place fraud alerts on your credit file through Equifax and TransUnion. Also, set up transaction alerts with your bank and credit cards to receive immediate notifications of any activity.

4. Stay educated together—Scams change all the time. Stay up to date through resources like the Canadian Anti-Fraud Centre. Families should discuss scams regularly, treating it like a “digital fire drill.” Seniors who feel included and informed are more likely to speak up if something seems suspicious.

5. Report and share experiences—Too many victims stay silent out of shame. But reporting scams not only helps law enforcement, it also helps others avoid similar traps. Share experiences with friends, family, or community groups. Fraud loses power when people talk about it openly.

The bottom line is scams are not just a nuisance, they’re a growing threat to financial and emotional well-being. The good news is awareness is only the first step. With the right systems and supports in place and conversations, Canadians can turn the tide and protect themselves more effectively.

The key is not just knowing how to avoid scams but having the confidence and support to act when something doesn’t feel right.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.