Preventing fraud in retirement: How to protect what’s yours

The number one crime against older Canadians is fraud. But anyone can be a victim of fraud. 

Including me. A man who knocked on my door wore an official-looking jacket. I thought he worked for the province. He convinced me to sign a contract with a private company that would guarantee my gas and water payments wouldn’t rise for three years. That agreement increased my payments a lot. Also, the local utility didn’t raise their rates anywhere close to what he had predicted. His scare tactic worked on me! I had to pay over $3,000 to get out of the contract.

The Canadian Anti-Fraud Centre  says fraud and cybercrime in 2024 totalled over $600-million in victim losses, even though only 5-10% of fraud is reported .

It’s a myth that con artists target only people who have a lot of money. They may steal small amounts from many people. And their methods of reaching victims are diverse: the Internet, phone calls and those door-to-door visits.

What can you do to protect yourself, your family members and your friends? Knowledge is the best defense against fraud.

Why do scammers target seniors?

Scammers often view retirees and older adults as vulnerable targets and contact them for several key reasons:

Financial assets: Many seniors have accumulated savings, retirement funds or home equity over their lifetimes.

Less tech-savvy: Some older adults may be less familiar with technology, making them more vulnerable to online scams.

Loneliness/isolation: Scammers can exploit seniors who live alone or have limited social connections.

Cognitive decline: Age-related cognitive changes can impair judgment and decision-making for some seniors.

Less likely to report: Seniors may feel embarrassed or fear losing independence if they admit to being scammed.

Educating seniors about common scams and encouraging open communication with trusted family members or advisors will help protect them.

Seniors need to be aware of these common scams

By staying informed and taking proactive steps, seniors can help to protect themselves and their finances from fraudulent schemes, including these below:

1. Phone and internet scams: Fraudsters frequently use phone calls or the internet to trick seniors into revealing personal information or sending money. Phishing and pharming are common online scams:

Phishing involves fake emails that look real, asking you to click links and share personal or financial information.

Pharming redirects you to fake websites to steal your information.

Common tactics include:

  • Impersonating government agencies like the Canada Revenue Agency (CRA) or Canada Post.
  • Fake tech support scams claiming the senior's computer is infected.
  • Grandparent scams, where the scammer pretends to be a grandchild in trouble needing money.

2. Identity theft: Criminals steal personal information to open credit cards, take out loans, or make unauthorized purchases in the senior's name, or other fraudulent activities.

3. Investment scams: Unethical financial advisors or scammers may push risky or nonexistent investments, often promising unrealistic returns. Examples include Ponzi schemes, a fraudulent investment arrangement that pays off earlier investors with money from new investors.

4. Lottery and sweepstakes scams: Seniors are told they've won a prize, but must pay fees or taxes upfront to claim it. The prize never materializes.

5. Home repair fraud: Dishonest contractors may overcharge for unnecessary repairs or take payment without completing promised work.

6. Romance fraud: Fraudsters build online relationships with lonely seniors, then ask for money for emergencies or travel expenses.

10 fraud prevention tips for seniors in Canada

It's important to be aware of potential fraudsters who often target seniors. Fraudsters have sneaky ways to get their information. If you’re a senior, read these tips on how to stop fraud; if you’re not a senior, share them with seniors you know, and learn how to help protect yourself:

1. Be skeptical of people who contact you

Especially when you didn’t ask them to contact you! Someone might call you, pretending to be trustworthy. This is called social engineering. These tricksters use clever tactics to make you share personal information like passwords or bank details. They seem convincing, but remember, you don’t have to share anything unless you’re absolutely sure.

You can protect yourself by:

  • Always asking for the full name of the caller, their employee ID number, and request a callback number to verify their identity.
  • Never giving out personal or financial information to unsolicited callers, emailers or visitors.
  • Being wary of high-pressure sales tactics or limited-time offers requiring immediate action.
  • Remembering that government agencies like the CRA will never call demanding immediate payment.
  • Knowing that if you didn’t enter a lottery, you can’t win one. Legitimate lotteries don’t ask for payments upfront.

2. Protect your personal information

  • Safeguard your personal details like your Personal Information Number (PIN), Social Insurance Number (SIN), bank details, and passwords. Don't share them, unless absolutely necessary.
  • Use strong, unique passwords for online accounts and enable two-factor authentication when possible. Don’t keep pin numbers or passwords in wallets, purses or anywhere they can be easily accessed.
  • Be cautious about sharing personal details on social media.
  • Shred documents containing sensitive data before discarding.

3. Monitor your financial accounts

  • Keep an eye on your bank, investment and credit accounts. Review them regularly and look for any suspicious activity.
  • Check your credit reports annually for unauthorized accounts or inquiries.
  • Activate alerts with your bank to get notified of any unusual transactions, especially large ones.

4. Research before making financial decisions

  • Get multiple quotes for home repairs or major purchases. Check with the Better Business Bureau (BBB)  and ask for referrals from family and friends.
  • Always double-check the legitimacy of investment opportunities. Research thoroughly before committing any money.
  • Better yet, have your advisor or lawyer vet any investment opportunities before making any transactions. This is especially true if the promised returns are higher than what other investment opportunities can deliver. An advisor can help you make better financial decisions.[JS1]

5. Use technology wisely

  • Keep your computer security software up to date. If you’re not sure about updates, go to the vendors’ sites and get validation.
  • Never click on links or download attachments from unknown sources. Hover your mouse over email addresses and links to check for:
    • unknown senders
    • URLs that could take you to false landing pages or start a download that could capture your sensitive information.
  • Be suspicious of emails and social media containing spelling and grammar mistakes.
  • Use privacy settings on social media accounts to limit information visible to strangers.

6. Use direct deposit for income

  • Have regular payments such as Canada Pension Plan/Quebec Pension Plan, Old Age Security (OAS), etc. deposited directly into your bank account to prevent theft of physical cheques.

7. Trust your instincts

  • Ignore unknown callers; they may leave a voicemail you can check. If a scammer does get through to you, don't be afraid to hang up.
  • Delete questionable emails.
  • Take time to think things over – legitimate offers will still be available tomorrow.
  • Always remember that if an offer sounds too good to be true, it probably is!

8. Designate a trusted contact

  • Consult trusted family members or professionals before making significant financial decisions.
  • Consider naming a Trusted Contact Person, such as a family member or friend, who would be informed of any unusual transactions or possible financial exploitation.

9. Secure your home

  • Don't let strangers inside, even if they claim to be from a utility company or government agency.
  • Use peepholes and security chains on doors.
  • Consider a home security system or cameras.

10. Stay informed about current scams

  • Attend community fraud prevention workshops or seminars.
  • Discuss fraud prevention strategies with trusted friends and family members, or professionals.
  • Check official websites from financial institutions and government agencies, if you suspect scams using their names.

Remember, it's always better to be cautious, ask questions and ask for help.

What can you do if you suspect you’ve been scammed?

If you believe you've been the victim of fraud, take action immediately:

  1. Stop all contact with the scammer.
  2. Change passwords for all your online accounts.
  3. Report the fraud to local police.
  4. Contact the financial institutions you deal with, including insurance companies, banks, investment firms and credit card companies, to freeze your accounts, if necessary.
  5. Alert credit bureaus and consider placing a fraud alert on your credit reports.
  6. File a complaint with the Canadian Anti-Fraud Centre , by calling toll free at 1-888-495-8501 or through the Fraud Reporting System. 
  7. Contact these Government of Canada departments for:
  8. Keep detailed records of all interactions related to the suspected fraud.

If you need assistance or suspect fraud from someone using the Sun Life  name, contact us. We’re here to help and ensure your information stays safe:

Email: enterprise.security@sunlife.com

Telephone: 1-519-888-2412 (collect calls accepted)

Toll free in North America: 1-888-224-8110

Younger, more tech-savvy family members can be super helpful to help seniors stay safe. No need to let embarrassment or pride get in the way of asking for assistance. Chances are, they’ll be more than happy to help.

We have the power to help stop many fraud scams in their tracks. Let’s stay informed, alert and cautious.

This article is meant to provide general information only. Sun Life Assurance Company of Canada does not provide legal, accounting, taxation, or other professional advice. Please seek advice from a qualified professional, including a thorough examination of your specific legal, accounting and tax situation.