Seniors and finances: How to protect yourself from fraud and abuse

5 minutes

Jenny thought she was helping her grandson out of trouble. Steven believed he was protecting his bank account. Both nearly fell into the trap. Fraudsters are clever: they play on emotions, create a sense of urgency and mimic familiar voices. No one is immune of course, but seniors remain prime targets. At an advanced age, financial losses can be devastating and difficult to recover from. The best defence? Talking about it and adopting simple protective measures.

A growing threat

Understanding fraudsters’ tactics

Fraudsters are opportunistic and ever on the lookout for their next victim. They prey on seniors’ trust and their instinct to want to help. Their methods are constantly evolving. Here are some of the most common schemes.

Phone scams

The telephone remains their favourite weapon: voices, emergencies and credible scenarios are often enough to set the trap.

  • Impersonation of officials (tax agencies, banks, public services): Threats of legal action or asset seizure, demanding immediate payment via prepaid cards or cryptocurrency.
  • Prize or lottery scams: Announcement of large winnings, but victims must pay fees to claim them.
  • Emergency calls from “family”: A scammer pretends to be a grandchild in distress, e.g. involved in a car accident or got arrested, then urgently requesting money.
  • Artificial intelligence voice cloning: Fraudsters use AI to mimic a loved one’s voice, making the scam even more convincing.

Online fraud

The internet is fertile ground for scams. Behind a façade of legitimacy often lie sophisticated tactics designed to steal your personal information.

  • Phishing: Emails or texts that look like they’re from a bank or government agency, asking recipients to click on a link or divulge personal information.
  • Fake websites: Fraudulent pages that closely resemble legitimate organizations.
  • Malware: Downloaded via links or attachments, allowing access to passwords and banking information.

Abuse of trust

The threat doesn’t always come from afar—it can come from those closest to you.

  • Psychological manipulation: A relative, neighbour or caregiver repeatedly asks for money, playing on generosity or guilt.
  • Unauthorized use of cards or powers of attorney: Discreet spending or exceeding the authority granted.
  • Pressure to sign: Coercion to change a will, insurance policy or to grant power of attorney.

Identity theft and financial scams

All fraudsters need to build an elaborate scheme is a few personal details.

  • Identity theft: Opening accounts in the victim’s name.
  • Fake investments: Promises of “guaranteed” or spectacular returns.
  • Ponzi schemes: New investors pay the old ones, until the system collapses.
  • Fake financial advisors: Individuals not registered with the Autorité des marchés financiers (This hyperlink will open in a new tab) (AMF) who vanish with entrusted funds.

How to protect yourself from fraud and abuse

1. Check the identity of anyone who contacts you

Never share personal information during a call you didn’t initiate. It’s safer to hang up and call the organization back using its official number.

If someone claims to be a financial advisor, ask for their licence number and check it in the AMF registry (This hyperlink will open in a new tab). Real advisors will respect your caution.

2. Protect your passwords

Create strong, unique passwords for each account. Enable two-factor authentication whenever possible.

Never share your login credentials, PIN, or social insurance number by phone, email or text. Legitimate companies will never ask for this kind of information.

3. Be cautious with electronic communications

Avoid clicking on suspicious links or attachments, even if the message appears to come from someone you know. Instead, type the website address directly into your browser.

4. Control access to your accounts

Clearly define the duration and limits of any power of attorney. Review who has access to your accounts regularly. Enable text or email alerts to be notified of unusual transactions.

5. Involve trusted loved ones

Discuss your finances with family members. Having them meet with your advisor isn’t a weakness, it’s a smart precaution.

6. Never invest in products you don’t understand

Financial products should be clear and transparent. If someone promises unrealistic returns or pressures you to act quickly, it’s a red flag.

7. Be wary of pressure and urgency

Scammers try to rush your decision-making: “Your account will be closed,” “Limited-time offer,” “Act now.”

Feeling pressured? That’s a red flag! Important decisions deserve time and consultation.

What to do if you’re a victim of fraud or abuse

  1. Ask your financial institution to freeze your accounts and dispute any unauthorized transactions. Change your passwords.
  2. File a police report and keep a copy for your records.
  3. Report the incident to the Canadian Anti-Fraud Centre (This hyperlink will open in a new tab) or the Autorité des marchés financiers (This hyperlink will open in a new tab).
  4. Protect your identity: Place a security alert on your credit file (Equifax (This hyperlink will open in a new tab), TransUnion (This hyperlink will open in a new tab)) and monitor your credit reports.
  5. Talk to trusted loved ones or community organizations. If you’re feeling distressed or anxious, reach out to professionals.

What if a loved one becomes a victim of fraud?

Family and friends play a key role in prevention. Watch for warning signs: changes in financial habits, unexplained withdrawals, anxiety or isolation. If something feels off, start a conversation.

We protect our members

We take the protection of our members seriously. If you have doubts about a communication claiming to be from us, call 1 866 777-3694. We’d rather answer 100 legitimate questions than see one member fall victim to fraud.

Together, by staying vigilant and supporting one another, we can create a safer environment for all.