The Financial and Consumer Services Commission (FCNB) is shining a light on the top frauds and scams reported by New Brunswickers as part of Fraud Prevention Month.
More than 420 New Brunswickers reported losing a total of $4.2 million to frauds and scams in 2021, according to the Canadian Anti-Fraud Centre.
Erin King, acting director of education and communications at FCNB, said investment scams were ranked as the top category of fraud by dollar loss.
“The reported amount of dollars lost by New Brunswickers to investment scams, including crypto-asset trading, has more than doubled since 2020,” said King.
According to the anti-fraud centre, New Brunswickers reported losing more than $1.9 million to investment scams, which also include pyramid and Ponzi schemes.
King noted that the actual number of victims and money lost is likely much higher since it is estimated that only five per cent of victims report frauds or scams.
Romance scams were second on the list with victims reporting a loss of more than $650,000. Scammers set up fake profiles and pretend ot be looking for a companion in order to gain a person’s trust and eventually ask for money.
The third-highest category of fraud by dollar loss was extortion scams at more than $357,000. In this case, a scammer uses coercion to unlawfully try to obtain money or services from someone.
Emergency scams were the fourth-highest category with victims reporting a loss of more than $265,000. Scammers typically target older adults by calling and pretending to be a grandchild or family member in trouble in order to get money.
Service scams were number five on the list with $211,000 reported lost in 2021. In this case, a scammer poses as a service provider to trick someone out of their money by way of unclear contracts, offering poor quality products or services, using aggressive sales tactics or simply not providing the services paid for.
King said while it is important to be able to spot a scam, it is just as important to take the next step to report it.
“Don’t let embarrassment or fear keep you from reporting fraud,” said King. “Every day that you delay reporting fraud is one more day that the scammer is free to spend your money and target your friends and family as their new victims.”
King said FCNB offers many resources on its website to help people stay informed about scams and learn how to spot the common red flags of fraud.
