How to avoid scams targeting retirees

Scammers don’t typically care who they target; all they care about is getting hold of your hard-earned money. However, they do target retirees more often than other Canadians.

Several key reasons why scammers target retirees are that they:

May have some form of dementia or Alzheimer’s and therefore be more easily confused and repeatedly tricked.
Tend to be home more often and more likely to answer the door or the phone.
Are not usually as tech-savvy as other age groups.
Can be very trusting.
Can be lonely and therefore a target for scammers who prey on their isolation.
Typically have a considerable amount of savings.

Retirees collectively lose millions of dollars to scams in Canada every year. Let’s take a look at the most common scams targeting retirees and the red flags to watch out for, so you can avoid becoming a victim.

The grandparent scam

The grandparent scam has become one of the most worrying scams in Canada, with retirees losing $11.3 million to it in 2023. One particularly unfortunate retiree in Ontario (who suffered from dementia) lost $600,000 from repeated grandparent scams.

Here’s how it works: the scammer phones an older Canadian and pretends to be their grandchild. They say that they’re in trouble — often in hospital, jail or a police station — and that they need money to resolve the situation. The scam’s potential victims are then asked to either wire the money, send an e-transfer, send gift cards or give their credit card information, and to not tell anyone about it, especially the grandchild’s “parents”.

Some scams are reportedly even using AI to replicate the real grandchild’s voice. Thankfully, there are some great tips to help prevent you from becoming a victim of the grandparent scam:

Verify their identity by asking them to tell you something that only your real grandchild could know.
After you hang up, call your grandchild on the phone number you have for them.
Never give them personal information.
Ask them who they are, don’t tell them who you think they may be.
Never send money in any form unless you can verify that your grandchild really is in trouble.
Always call their parents and explain what happened before you do anything.

Phishing scams

Phishing scams aren’t aimed exclusively at retirees, but due to that age group’s perceived lack of tech savviness, they often become its victims.

Here’s how it works: scammers send their intended victims an email or text message that’s designed to appear to be from a legitimate source. This could be a bank, credit card company or other kind of well-known business, such as Amazon or Netflix.

The message often contains an offer of refunds or money, or a request to update information and click on links, download attachments or scan a QR code. Some of these messages will also contain your full name and social insurance number to make them seem authentic. Ultimately, they want to persuade you to provide financial information or get you to click on a link that will install malware or a virus.

Phishing scams can lead to:

Fraud (persuading you to send money, often in the form of a wire transfer, gift cards or cryptocurrency).
Identity fraud/theft (for example, gaining access to your accounts or opening new accounts in your name).
Ransomware (making your files inaccessible or locking you out of your computer until you pay a ransom).

Here are some ways to prevent yourself from becoming a phishing scam victim:

Never send money or personal/financial information in response to an unexpected/unsolicited email or text message.
Always be wary of requests for payment in cryptocurrency or gift cards.
Don’t click on any links from dubious emails or text messages.
Set up alerts with your bank to monitor any suspicious transactions.
Don’t provide log-in or credit card information to any site linking from an email or text message. Instead, access the site directly using its legitimate web address.

The romance scam

With the romance scam, fraudsters often take advantage of the loneliness of single retirees, targeting the widowed or recently divorced. This is a particularly pernicious scam, as it involves not only stealing from its victims but also breaking their hearts. It’s one of the biggest scams in Canada, with almost $60 million lost to romance scams in 2024.

Here’s how it works: scammers make contact through social media or dating apps and start up a conversation, using a fake online profile. This will soon escalate to regular contact and then develop into what seems to be a romantic relationship.

Often, the scammer claims to be living away from their victim’s home city (and sometimes in another country), working on a contract that is due to end soon. They’ll make plans to meet in person, but these plans always fall through.

Eventually they’ll ask for money (and often in an indirect way, for example, by saying they have medical bills or business problems that are preventing them from meeting up). These scams can last for years, costing their victims tens of thousands of dollars.

Here are ways to avoid becoming a victim of a romance scam:

Don’t send money or your bank details to anyone you’ve never met in person.
Be suspicious of anyone trying to move the communication outside the original app.
Research the person’s name and photo to see if they match up.
Be very wary of anyone claiming to be in love with you after a short period of time.
Never send inappropriate photos; these could be used to blackmail you.
If your arrangements to meet up in person keep falling through, it’s almost certainly a scam.

Tech support scams

This is one of the most long-lasting scams in Canada and while it’s not only aimed at retirees, less tech-savvy seniors are often the targets.

Here’s how it works: you’ll be contacted through text, email, phone call or website pop-up message, telling you that there’s a problem with your device. You’ll be told that it’s urgent that you call a number to receive technical support to fix the issue. If you call the number, they’ll often ask to be given remote access to your device so they can fix it.

The scammers typically demand payment for fixing your non-existent problem or ask you to transfer funds while they have control of your device, so they can access your bank details and log-in information. They often install malware so they can monitor your online activity to steal financial information. Ultimately, tech support scams can cost far more than the initial “tech support” fee that they charge you.

Here are ways to avoid becoming a victim of tech support scams:

Ignore any unexpected tech support communication via email, text, phone or pop-up.
Call your service provider (or tech manufacturer) directly (on a trusted number) if you think you may have a legitimate technical issue.
Be wary of any messages saying you’ve been hacked or that your device is sending out viruses.
Never allow access to your device to anyone who has contacted you unexpectedly.
Only ever download software from official websites.

Government agency scams

Some scammers pretend to be from a government service, such as the Canada Revenue Agency or Service Canada.

Here’s how it works: scammers imitating government employees contact their intended victims with a variety of false claims. These could be that their victims have a compromised SIN number, owe taxes or have committed a financial crime.

They often aggressively demand payment, in the form of cryptocurrency, money wire or gift cards, and threaten arrest, deportation or fines.

Scams also use the government’s energy efficiency rebate programs to target retirees. Scammers will contact potential victims, claiming that they can handle rebate applications and payments on their behalf, which is not true.

Rebates are legitimately available for energy-saving renovations, such as new windows and doors, insulation and solar panels. However, predatory reno companies are using the lure of these rebates to try and convince older homeowners to sign up with them; they then defraud them.

Here are ways to avoid becoming a victim to government agency scams in Canada:

Never give personal or financial information to someone unexpectedly calling you.
Anyone using aggressive language and threatening to deport or arrest you is a scammer.
Never send payment to a supposed government agency by e-transfer, cryptocurrency or gift cards.
Don’t answer unsolicited phone calls or allow door-to-door salespeople into your home.
Don’t click on social media ads promoting the rebates.
Deal only with Enbridge Gas or Save on Energy directly.

How to report scams in Canada

If you become a victim of a scam and are defrauded of money, you should contact your local police department.

If you believe you’ve been contacted by a potential scammer, you should report it to the Canadian Anti-Fraud Centre.

And, if you find yourself in a situation that seems like it could be a scam, before sending any money you should discuss it with a trusted friend/family member, or your IG Advisor. You can also protect yourself further by contacting your IG Advisor and naming a trusted contact person for your IG Wealth Management accounts (if you haven’t already done so).

This a person you trust whom your financial advisor can contact if they suspect that you might be experiencing financial abuse/exploitation or are possibly becoming the victim of a scam. Find out more about naming a trusted contact person here.

And if you don’t have an IG Advisor, you can find one here.

^{Written and published by IG Wealth Management as a general source of information only. Not intended as a solicitation to buy or sell specific investments, or to provide tax, legal or investment advice. Seek advice on your specific circumstances from an IG Wealth Management Advisor.}