Canadians falling victim to investment, employment scams

Canadians hoping to make a little extra income are those mostly falling victims to scams, according to new data.

The report by the Better Business Bureau, released Monday, suggests investment and employment scams were the two riskiest types of scams in Canada last year.

The BBB measures risk by examining exposure, susceptibility, and monetary losses.

More than 82 per cent of Canadians targeted by investment scams, including those related to cryptocurrency, reported losing money. It also represented the highest median dollar loss at $9,365.

Next up were employment scams, with 26 per cent of Canadians targeted saying they lost money – a median loss of $3,600.

“Ways that people are trying to make a little extra income to stay afloat,” said Stefanie Lasuik at the Better Business Bureau. “So we can safely summarize that this is because people are trying to provide for their families and are becoming a little more desperate to do so in this economy.”

Coming in a number three on the BBB’s “riskiest” list were home improvement scams.

It’s something Katie Clark knows all too well. Clark is one of 30 people to have brought claims against Winnipeg general contractor Jerrett Biggs. She claims to be out thousands of dollars.

The Manitoba Court Registry shows a long history of Biggs being taken to civil court by former clients.

Clark is often left questioning how there are no clear paths of holding individuals accountable.

“Morals and credit ratings is what it boils down to, and if you have neither, it’s a free world out there,” she said. “You can do whatever you want, and there is no one to hold you accountable and that is scary.

“I did speak to a couple, who were new immigrants to Canada and had been scammed by him, and their first words were ‘this wouldn’t happen in our country.’ And they just can’t believe it’s allowed to happen in Canada.”

Overall, the BBB found a 30 per cent increase in the number of Canadians who reported losing money after being targeted by a scam.

“People shouldn’t feel ashamed if they are scammed or fooled in any way,” said Lasuik. “It’s nothing to be ashamed of right now because everyone is falling victim right now, all across the spectrum.”

Those between the ages of 18 to 24 are reporting the highest median dollar loss – $374.

“We are seeing that high median loss in the younger age group, which is very tech savvy to begin with, so it’s not people who are out of touch with technology who are being scammed. It’s really everybody,” Lasuik said.

To avoid falling victim to any one of these scams, Lasuik recommends consumers speak with a trusted source before making a financial decision, as scammers typically prey on isolation.

“They think they can fool this person is working by themselves, or operating on their own assumptions,” she said. “But as soon as you fill in someone else and get their perspective then you can work together to verify who you are working with.”