Lesson 25: Recognizing and Preventing Fraud

Introduction: It Could Happen to Anyone

Imagine this: you get a text message from what looks like your bank. It says your account has been flagged for suspicious activity and you need to verify your information right away. There is a link. It looks official. You are in a hurry. You click it, enter your details — and within hours, money is gone from your account.

This is not a made-up story. It happens to real people every single day in Canada — including teenagers and young adults in Saskatchewan.

Fraud means tricking someone to steal their money or personal information. It is not always done by a shadowy figure in a dark room. It can happen through a text, an email, a phone call, or even a social media message from someone who seems friendly. And it is getting harder to spot all the time.

In Lesson 24, we talked about protecting your personal information. This lesson builds on that. Here, we are going to look at the most common types of fraud, learn how to recognize the warning signs, and talk about what you can do to protect yourself — including specific scams that target people here in Saskatchewan.

Section 1: What Is Fraud?

Fraud is when someone deliberately tricks or deceives you to take your money, your personal information, or something else of value. It is a crime in Canada.

Fraud is different from regular theft. If someone picks your pocket, they take something directly. With fraud, they trick you into handing it over yourself. That can make it feel embarrassing — like it was your fault. It was not. Fraudsters are skilled manipulators. They have done this many, many times and they know exactly how to make you feel rushed, scared, or trusting.

Every year, Canadians lose hundreds of millions of dollars to fraud. In 2023, the Canadian Anti-Fraud Centre received reports of over $550 million lost to fraud — and that is only the cases that get reported. Many people never report it because they feel ashamed.

Young people between the ages of 18 and 24 are actually one of the most targeted age groups. Why? Because they are active online, may have less experience with financial scams, and often have clean credit records that fraudsters want to use.

Knowing what fraud looks like is one of the best things you can do to protect yourself.

Section 2: Types of Fraud

There are many different types of fraud. Here are the ones you are most likely to come across.

Phishing

You learned about phishing in Lesson 24, but it is worth going deeper here because it is the most common type of fraud. Phishing is when a scammer pretends to be a trusted person or organization — like your bank, the CRA, or even your school — to trick you into giving up personal information or clicking a dangerous link.

Phishing can come through:

• Email — A fake message that looks like it is from your bank or a store you use.

• Text message — Sometimes called "smishing." A text that looks official, often with a link.

• Phone call — Sometimes called "vishing." A caller pretends to be from the government or a company.

The goal is always the same: to get you to act quickly without thinking.

Identity Theft

Identity theft is when someone uses your personal information — like your SIN, your name and birthdate, or your banking details — to pretend to be you. They might open credit cards in your name, apply for loans, or file a fake tax return to collect your refund.

Identity theft can take months or even years to fully clean up. It can damage your credit score and make it harder to get loans, rent an apartment, or even get certain jobs in the future.

Online Shopping Scams

You see a great deal online — maybe on social media or a classified site like Kijiji — for something you really want. You pay, but the item never shows up. Or the item arrives and it is nothing like what was advertised.

These scams are extremely common. They often use fake websites that look like real stores, or fake sellers on legitimate platforms.

Romance Scams and Social Media Fraud

This one can be hard to talk about, but it is important. A romance scam is when someone builds a fake online relationship with you — over weeks or even months — and then asks for money. They might claim to be in an emergency, stuck somewhere, or needing help to visit you. The person is not real. The connection was manufactured just to get your money.

Social media fraud also includes fake giveaways ("You've won! Send us your address and a $20 processing fee"), fake investment tips from accounts pretending to be celebrities, and fake job offers.

Government Impersonation Scams

This is one of the most serious types of fraud in Canada. Scammers call, text, or email people pretending to be from the Canada Revenue Agency (CRA), Service Canada, or other government agencies. They may say you owe money and will be arrested if you do not pay immediately. They may ask you to pay in gift cards or e-transfers — a major red flag, because real government agencies never ask for payment that way.

In Saskatchewan, there are also scams that specifically target Indigenous people. These include fake messages about Treaty payments, fake Indian Status card renewals, fraudulent land claim communications, and fake band council messages. We will go deeper on this in Section 5.

Investment Scams

In Lessons 21 and 22, you learned about real investments like GICs, stocks, and mutual funds. Investment scams promise returns that are way too good to be true. "Double your money in 30 days!" or "Risk-free returns of 40%!" are warning signs. These scams often target people who are new to investing and excited about the possibility of making money quickly.

If it sounds too good to be true — it is.

Section 3: How to Recognize Fraud

Fraudsters are good at what they do. But they also follow patterns. Once you know what to look for, the warning signs become easier to spot.

The Big Red Flags

• Urgency — You are pressured to act right now, before you have time to think. "This offer expires in 10 minutes." "You will be arrested if you do not pay today." Real organizations give you time.

• Fear or threats — You are told something bad will happen if you do not act immediately. Scammers use fear because it shuts down careful thinking.

• Unusual payment methods — You are asked to pay with gift cards, cryptocurrency, wire transfer, or e-transfer. Legitimate businesses and government agencies do not ask for payment this way.

• Something feels off — The email address looks slightly wrong. The logo does not look quite right. The grammar is unusual. Trust that feeling.

• Unsolicited contact — Someone contacts you out of nowhere about something you did not sign up for or ask about.

• Requests for personal information — A real bank or government agency will not call you and ask for your SIN, password, or full banking details over the phone.

• Deals that seem too good — Whether it is a job offer, a prize, or an investment, if the reward seems far too big for what is being asked, be skeptical.
  
  

A Simple Checklist

When you receive a message or offer that feels suspicious, ask yourself:

1. Did I expect this contact?

2. Is there pressure to act fast?

3. Is someone asking for personal or financial information?

4. Does the email address, phone number, or website look exactly right?

5. Am I being asked to pay in an unusual way?

6. Does something about this feel off?

If you answer yes to any of these, slow down. Do not click any links. Contact the organization directly using a phone number or website you find yourself — not one provided in the suspicious message.

Section 4: How to Protect Yourself

Recognizing fraud is important. But there are also habits you can build that make you much harder to target in the first place.

Slow Down

Fraudsters rely on you acting fast. The single most powerful thing you can do is pause. If a message creates urgency or panic, that is exactly when you should slow down, not speed up. Give yourself time to think and verify.

Verify Before You Trust

If someone contacts you claiming to be from your bank, the CRA, or any organization, do not trust the contact information they gave you. Hang up or close the message. Then find the official phone number or website on your own and reach out directly to ask if the contact was real.

Protect Your Personal Information

This connects directly to Lesson 24. The less personal information you share online, and the stronger your passwords are, the harder it is for fraudsters to target you. Use two-factor authentication (2FA) on important accounts. Be careful about what you post on social media.

Be Careful When Shopping Online

Before buying from an online store you do not recognize:

• Look for a secure connection — the web address should start with "https://" and show a padlock icon.

• Search for reviews of the store from other buyers.

• Be extra cautious with deals found through social media ads — these are a common way to spread fake storefronts.

• Use a credit card rather than a debit card when possible, as credit cards often offer better fraud protection.

Talk to Someone You Trust

If you receive an offer, message, or call that seems unusual, talk to a parent, guardian, elder, or someone else you trust before doing anything. Getting a second opinion is not a sign of weakness. It is smart. Scammers count on you making decisions alone and quickly.

Trust Your Instincts

If something feels wrong, it probably is. You do not need to be able to explain exactly why something feels off to act on that feeling. Hanging up on a suspicious call or ignoring a sketchy message costs you nothing. Falling for a scam can cost you a lot.

Section 5: Fraud Targeting Indigenous Communities in Saskatchewan

It is important to name this directly: Indigenous people in Canada, including First Nations and Métis people in Saskatchewan, are specifically targeted by certain types of fraud. Scammers know that government benefit systems and Treaty-related communications can be confusing, and they exploit that.

Common scams that target Indigenous communities include:

• Fake Treaty payment notifications — Messages claiming you are owed Treaty money and asking for your banking information to deposit it.

• Fake status card renewals — Fake websites or callers asking for personal information to "renew" your Indian Status card. The real process goes through Indigenous Services Canada.

• Fake band council or FSIN communications — Fraudulent messages made to look like they are from your band council or the Federation of Sovereign Indigenous Nations.

• Fake land claim or settlement offers — Messages claiming you are owed money from a land settlement and asking for your SIN or banking details.

• Fake resource or employment opportunities — Fake job postings targeting communities with high unemployment, asking for application fees or personal information upfront.

If you receive any communication about government benefits, Treaty payments, or band matters that asks for personal or banking information, do not respond to it directly. Contact your band office, Métis Local, or the relevant government agency using verified contact information.

Community knowledge is also a form of protection. Sharing information about active scams — with friends, family, and Elders — helps the whole community stay safer. Many First Nations communities in Saskatchewan have communication channels through band offices and social media where scam alerts are shared. Pay attention to those.