Jul 30, 2026
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Add us on GoogleAfter nearly falling for a sophisticated phone scam, a Reddit user posted their experience on r/PersonalFinanceCanada to bring awareness of the threat to their fellow personal finance Redditors — but all Canadians can learn something from their experience.
Earlier this month, Reddit user getfrostedtips laid bare a seemingly legitimate phone scam they nearly fell for.
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It started with a phone call that appeared on their caller ID as Wealthsimple. The alleged company representative knew their name and said that someone was trying to use their credit card to purchase a room in a hotel. After confirming with the representative they were not travelling, the Redditor was told they would receive a text message from Wealthsimple with a code so they could successfully “block” the transaction.
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This request was what tipped the poster off to a scam in motion, leading them to hang up and call Wealthsimple to confirm if there was a hotel booking transaction on their account. The company confirmed there was no such transaction, according to the user’s post.
“I was already a little bit suspicious so I didn’t give them any information,” they wrote, adding, “Essentially, they were trying to buy something online and needed my verification code to complete the purchase.”
While the Redditor was ultimately not swayed by the scammer’s methods, they appeared shaken. They admitted to bringing awareness to their situation from a “burner” account because they were “paranoid.”
“I’m young and quite savvy and I was very close to falling for this. These guys are being good, so please be careful and remind your family members to be vigilant.”
How bad are phone scams in Canada?
Other Redditors chimed in with their own anecdotes related to phone scams, which all featured a similar tactic: scammers posing as financial institution representatives.
One user received multiple calls allegedly from CIBC’s fraud department. When they finally did answer, the voice on the other end stated someone was trying to book an expensive trip through booking.com — the user hung up without hearing them out.
Another commenter received a call from Tangerine Bank’s fraud department for a “suspicious transaction” on their credit card. They didn’t answer, and instead contacted the bank directly. Turns out, the call was legitimate, as someone was making a fraudulent purchase using their card.
This particular anecdote points to why these types of scams can be successful: they use a kernel of truth to add credibility to their claims. And unfortunately, strategies like these pay off.
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According to the Canadian Anti-Fraud Centre’s (CAFC) latest figures, scammers swindled $704 million from Canadians last year. That’s only reported losses, which the organization estimates make up a mere five to 10 percent of all fraud in Canada.
Of that egregious sum, $28.3 million was perpetrated via fraud investigator scams — the kind the Reddit poster experienced.
And with new AI-powered technology, scammers appear to be upping their game in both fraud potency and quantity.
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Scam efforts on the rise
A recent survey from TD Bank completed by Leger found that nearly half of Canadians (46%) have encountered a scam in some form on a weekly or even daily basis. And 24% of respondents reported themselves or a family member falling victim to a fraud attack.
What’s just as startling is that 89% of those surveyed said they were “confident in their ability to spot fraud” even though 52% admitted to taking risks that leave them exposed to scammers (e.g. using public Wi-Fi to access bank accounts).
Kevin Wicks, group manager of fraud education at TD, told the Canadian Press that artificial intelligence is giving scammers the ability to create assets of deceit faster and at scale (think fake websites and text messages, as well as phishing emails). And while Canadians’ confidence in spotting a bad actor is high, technology can quickly turn that self-assurance into a liability.
“In the past, it could take these scammers months or weeks to build a website or an email or a text message to potentially phish someone and obtain their personal or financial information,” Wicks told the outlet, adding “Now with AI, they can do that so quickly.”
How to spot a phone scam in action
Considering the rise in scam attempts, mounting fraudulent losses in Canada and increasingly powerful AI technology, it’s understandable to wonder if you have a chance to spot a phone scam before it’s too late. Thankfully, there are some simple tips that can help you spot one in action.
- Be wary of unsolicited calls: If someone contacts you unexpectedly claiming to be from your bank, the government, a utility company or law enforcement, don’t assume they’re legitimate just because they know your name or other personal details.
- Watch for pressure tactics: Scammers often try to create urgency by claiming your account has been compromised, you owe money immediately or you’ll face arrest, fines or service disconnection unless you act right away. Unnecessary urgency is almost always a red flag.
- Verify independently: If you’re unsure whether a call is legitimate, hang up and contact the organization or financial institution using a phone number from its official website, the back of your bank card or a recent statement. Never fully trust the number a caller contacts you on.
- Discuss it with someone you trust: If a caller is asking you to keep the conversation secret or discouraging you from seeking advice from another person, that can be a strong warning sign of ulterior motives. Scammers thrive in secrecy. Whenever you’re making a financial decision, asking for a second opinion is always a good idea.
How to respond if you fall victim
If you’ve been targeted by a phone scam or another type of fraud, acting quickly can help limit the financial and personal damage. The CAFC recommends taking the following steps as soon as possible:
- Preserve any evidence: Save anything related to the scam, including emails, text messages, call logs, receipts, bank records and screenshots. This information can help with the investigation.
- Notify your financial institution and credit bureaus: If you sent money or shared financial information, contact your bank or credit card provider immediately so they can secure your accounts, attempt to stop or recover transactions where possible and monitor for suspicious activity. If your personal information was compromised, notify Equifax and TransUnion so they can place fraud alerts on your credit file.
- Report the fraud to the authorities: Contact your local police service and report the incident to the Canadian Anti-Fraud Centre by calling 1-888-495-8501. Reporting scams helps investigators track fraud trends and may assist in preventing others from becoming victims.
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Brett Surbey is a corporate paralegal with KMSC Law LLP and freelance writer who has written for Yahoo Finance Canada, Success Magazine, Publishers Weekly, U.S. News & World Report, Forbes Advisor and multiple academic journals. He and his family live in northern Alberta, Canada.
