Fraud to look out for in 2025

By the time Ashan realized he'd been scammed, it wasn’t just his savings that were gone — it was his confidence. A cautious investor who preferred gold and silver over digital assets, Ashan had always avoided risky opportunities. But when a WhatsApp acquaintance introduced him to cryptocurrency, his curiosity got the better of him.

What started as a small investment — a few hundred dollars — quickly grew into thousands. Each day, his new friend sent him updates, showing the value of his crypto soaring. Encouraged by what he thought were real gains, Ashan poured more and more money into the scheme. Then, one day, everything vanished. His "friend" disappeared, the website tracking his investment went offline, and Ashan realized he’d lost $100,000.

Ashan, a Toronto-based Uber driver in his mid-forties, had moved to Canada just a few years ago to create a better life for himself and his family. "I wasn’t trying to make a fortune," he told Jim Helik, a financial literacy professor at Yorkville University who learned Ashan’s story during a ride. "I just wanted more money for myself and my family, and everybody seemed to be doing this." Ironically, Helik teaches about the risks of cryptocurrency scams, yet even his insights couldn’t prevent Ashan from becoming a victim. Sadly, his story is just one of many. Canadians reported over $503 million in losses to fraud as of October 2024, with 28,634 victims across the country. Experts at the Canadian Anti-Fraud Centre believe these numbers only scratch the surface, as many victims feel too ashamed or hopeless to report their experiences. 

Fraudsters exploit trust, technology, and emotion to craft scams that evolve faster than many people can keep up with. From cryptocurrency scams and fake job offers to seasonal phishing tied to tax rebates or holiday shopping, their tactics grow more sophisticated each year. The addition of advanced technologies like artificial intelligence raises the stakes even further.

Read on to explore the scams you need to watch out for, with expert advice and practical steps to protect yourself and your loved ones.

Recurring scams, familiar threats, and new twists

Fraudsters often take existing scams and adapt them to leverage new technologies or exploit current events. Classic schemes like account takeovers, phishing, and Canada Revenue Agency (CRA) scams remain common, but their execution has become more targeted and convincing.

Account takeovers

Account takeovers occur when fraudsters gain unauthorized access to personal accounts — banking, email, or social media — by stealing login credentials or exploiting vulnerabilities. Once inside, they can drain your funds, impersonate you, or use your account to target others.

How it works: These scams often begin with phishing emails or texts that appear to come from trusted institutions. The messages may include urgent warnings about account compromise, urging you to click a link or provide sensitive information. Fraudsters may also use malware to capture keystrokes or gain access to saved passwords. Once they control one account, they can use it to access others, creating a cascade of damage.

"Account takeover scams exploit trust and urgency," explains Jeffrey Horncastle, Acting Client and Communications Outreach Officer at the Canadian Anti-Fraud Centre. "Fraudsters are also using more sophisticated techniques like social engineering, where they manipulate victims into handing over their credentials willingly."

Example: You receive an email from your bank claiming suspicious activity on your account. The email looks legitimate and includes the bank's logo and branding, as well as a link to "secure your account." Clicking the link leads to a fake login page designed to steal your credentials.

HOW TO PROTECT YOURSELF

• Enable 2-step authentication: Also known as two-factor authentication (2FA) or multi-factor authentication (MFA), this security feature adds an additional layer of protection to your accounts. It requires multiple steps to verify your identity before granting access, such as entering a one-time password (OTP) code sent to your phone or email. Never share your OTP Code with anyone. Setting up 2-step authentication is one of the most effective ways to safeguard your information.

• Create unique passwords: Avoid reusing passwords across accounts, as doing so can make it easier for fraudsters to gain access to multiple platforms. Consider activating biometrics to log in securely with your unique fingerprint and face ID.

• Stay informed on our Security Centre: Be skeptical of messages that create a sense of urgency or ask for sensitive information. Fraudsters often use emotional manipulation to pressure victims into acting without thinking. Always contact Tangerine or other institutions directly through official channels to confirm any unusual requests.

• Monitor your accounts with Orange Alerts: Tangerine Clients can take advantage of Orange Alerts, including suspicious spend alerts, a feature that provides real-time notifications about unusual account activity. These alerts can help you quickly spot unauthorized transactions or changes. To set up Orange Alerts, follow these instructions.

CRA and tax scams

Scams impersonating the CRA spike during tax season, preying on fear and urgency. Victims receive fake emails, texts, or phone calls claiming they owe back taxes or are eligible for unclaimed refunds. These messages often threaten penalties or offer tempting financial rewards, creating pressure to act quickly.

A common scenario: Abdul received a text about a $2,000 tax refund, along with a link to claim the funds. Instead of clicking, he logged into his CRA account directly and found no such refund existed. Many others aren’t as fortunate — phishing links can lead to fake websites designed to steal credentials or install malware.

What experts say: "The CRA scam evolves each year, but it always relies on urgency and fear to force quick action. Taking a moment to verify can make all the difference," emphasizes Horncastle.

HOW TO PROTECT YOURSELF

• Trust only official channels: Log into your account at cra.gc.ca or contact the CRA directly to verify any claims. Consider setting up direct deposit to your bank account for any money you get from the CRA.
• Avoid clicking links: The CRA will never send text or email links for payments or refunds.
• Verify suspicious communications: Take the time to confirm the legitimacy of any message with the CRA before responding.

AI-driven scams: a growing threat

Artificial intelligence has become a game-changer for fraudsters, enabling them to create highly convincing fake voices, videos, and messages. These tools make scams feel more real than ever.

Read more: Scams and AI: the new fraud frontier

Voice cloning and deepfakes

Deepfakes are a type of synthetic media created using artificial intelligence (AI) to manipulate or generate images, audio, or videos that appear real. In simpler terms, a deepfake can replace a person’s face or voice in a video or audio recording with someone else’s, making it look or sound as though that person said or did something they didn’t. 

One of the most alarming uses of AI in fraud is voice cloning, where scammers replicate a loved one’s voice using just a short audio sample. This has been used in grandparent scams, where fraudsters pose as distressed family members and request immediate financial help.

"In Ontario, scammers used voice cloning to impersonate a grandson involved in a car accident," says Dr. Tom Keenan, cybersecurity expert and author of Technocreep. "They combined this with spoofed caller IDs and a fake lawyer to convince an elderly woman to send over $21,000."

HOW TO PROTECT YOURSELF

• Create a family password: Ask for a detail only your loved one would know.
• Pause before acting: Scammers thrive on urgency. Taking time to verify can prevent costly mistakes.
• Stay skeptical: Don’t be afraid to pause or say "no”. If something feels off, trust your instincts. 

AI-enhanced phishing

AI is also being used to generate personalized phishing emails, mimicking the tone and details of trusted institutions. These messages often reference personal information gathered from social media, making them more convincing.

"Scammers know how to exploit the data you freely share online. Limiting your digital footprint can go a long way in protecting yourself," advises Horncastle.

Stay alert and aware of new scams, keep your data secure and carefully review all details if you receive a message.

Seasonal and news-driven scams

Scammers often align their schemes with seasonal trends and breaking news, targeting people when they’re distracted or emotionally invested.

Holiday scams

The holiday season is a hotbed for fraud. Fake package delivery notifications, counterfeit online storefronts, and bogus gift card deals are rampant.

"Holiday scams prey on the chaos of the season," warns Helik. "With so many distractions, people are more likely to overlook warning signs."

HOW TO PROTECT YOURSELF

• Track packages directly: Check all expected deliveries with carriers using the official tracking numbers.
• Shop smart: Stick to well-known retailers and secure websites.
• Question too-good-to-be-true deals: If something seems off, it probably is.

Fake charities

Before and during holidays, fraudsters often impersonate charities, playing on generosity with emotional appeals.

"Fake charities use emotional appeals to bypass logic. Always research before you give," advises Helik.

TIPS TO AVOID FAKE CHARITIES

• Verify charities through the CRA’s official registry.
• Avoid donating through unsolicited emails or links.
• Contact charities directly to confirm donation requests.

How to talk about fraud with family members

Fraud prevention starts at home. Scammers target all age groups — from seniors to teenagers — with schemes tailored to exploit their specific vulnerabilities.

For seniors: Teach them how to identify scams like grandparent fraud, phishing, and fake charities. Encourage them to verify requests for money directly with their loved ones.

For teenagers: Help them recognize phishing attempts and avoid sharing personal information on social media. Discuss the dangers of "easy money" job offers requiring upfront payments.

Family passwords: Establish a shared family password to verify identity during emergencies. For example, if someone claims to be a loved one in trouble, they should know the password.

Fraud tactics and schemes are constantly evolving but with the right knowledge and strategies you can protect yourself and your family. Pause, verify, and trust your instincts before acting. Together, we can make 2025 a safer year for everyone. You can find more tips and information at Tangerine’s Security Centre.