Avoiding common money scams

🟢 Basic · Step 6 of 22 · Topic: Taxes, Insurance & Safety

In one sentence

This post shows you how to spot common money scams in Canada, and what to do if one reaches you.

Words to know

Scam: a trick to steal your money or your personal information.
Phishing: a fake email, text or website that looks real and asks for your information.
Spoofing: when a scammer fakes the name or number on your caller ID, so a call looks official.
Money mule: a person who receives stolen money and sends it on. It can lead to arrest, even if you didn’t know.
Interac e-Transfer: a common way to send money from your bank account by email or phone number.

Step 1: Learn the red flags

Most scams share the same signs:

You must act right now, or something bad will happen.
You must pay with gift cards, crypto, prepaid cards or an e-Transfer.
Someone threatens arrest or deportation.
An offer is too good to be true: high pay for little work, or a cheap rental in a great area.
Someone asks for passwords, one-time codes or your SIN without a clear reason.

Step 2: Fake government calls (CRA and IRCC)

Scammers pretend to be the Canada Revenue Agency (CRA) or Immigration, Refugees and Citizenship Canada (IRCC). They say you owe money or will lose your status.

The CRA says it will never:

Threaten to arrest or deport you
Demand payment by e-Transfer, crypto, prepaid card or gift card
Send refunds by e-Transfer or text message
Contact you through apps like WhatsApp or Facebook Messenger

IRCC says its staff will never ask you to pay into a personal bank account, rush you to pay, or contact you through free email services or social media.

If a call worries you, hang up. Find the official number on canada.ca and call it yourself. Don’t trust caller ID, because it can be faked.

Step 3: Fake jobs that ask you for money

A job offer you never applied for, from a free email address.
You must pay a fee or deposit to start the job.
They send you a cheque and ask you to send part of it back. The cheque is fake, and you lose the money.
They ask you to receive money in your account and send it on. This can make you a money mule.

The Canadian Anti-Fraud Centre’s rule is simple: never send deposits or pay fees for a job.

Step 4: e-Transfer, overpayment and rental scams

Fake e-Transfer messages: an email or text that looks like a payment and asks you to sign in to your bank. Open your bank app yourself instead of clicking.
Overpayment: a buyer pays more than your price and asks you to send back the difference. The first payment later turns out to be fraud.
Rental deposits: a nice place at a very low price, photos copied from real listings, and pressure to pay a deposit quickly. Never pay before you see the place in person and confirm who owns it.

Step 5: Romance and investment scams

Someone you met online, but never in person, says they love you very quickly. Later, they need money, or they offer to “coach” you on crypto investing. You may see big gains on a website, but you can’t take your money out.

Never send money to someone you haven’t met. Don’t invest on a platform run by a person you don’t know. Step 22 covers investment scams in more detail.

Step 6: If it happens, act fast

Call your bank right away. Ask them to stop or reverse the payment if they can.
Report to your local police and get a file number.
Report to the Canadian Anti-Fraud Centre online at reportcyberandfraud.canada.ca, or call 1-888-495-8501 (Monday to Friday, 10 am to 4:45 pm Eastern time).
If your SIN or tax information was stolen, contact the CRA (1-800-959-8281) and Service Canada (1-800-622-6232). Also tell the credit bureaus, Equifax and TransUnion.
Forward scam texts to 7726 (it spells “SPAM”).

Be careful of anyone who offers to “recover” your lost money for a fee. That is often a second scam. Being scammed is not your fault. Scammers are skilled, and reporting helps protect others.

Example

You sell a used couch online for $300. A “buyer” sends a payment of $800 by mistake, they say, and asks you to send back the difference.

You send back: $800 − $300 = $500.
A few days later, the $800 payment turns out to be fake and is taken back.
You lost: $500 (the money you sent) + a $300 couch = $800.

The safe move: never send money back after an overpayment. Accept only the exact price, and wait until the money is really in your account.

Common mistakes

Trusting caller ID or a message that “looks official”.
Paying a fee or deposit to get a job.
Sending a rental deposit before seeing the place.
Staying quiet because you feel embarrassed. Reporting quickly gives you the best chance.

✅ My checklist

☐ I know the CRA and IRCC never threaten arrest or ask for gift cards
☐ I never share passwords or one-time codes
☐ I will hang up and call back using an official number
☐ I saved the Canadian Anti-Fraud Centre number: 1-888-495-8501
☐ I told my family and friends about these red flags

Next step → Step 7: Your first tax return and the benefits you can get

More in this topic → Taxes, Insurance & Safety

There are no affiliate or referral links in this post. This is general information, not financial, tax or legal advice; everyone’s situation is different. Figures were checked in October 2026 and can change.

Sources: CRA: recognize a scam · IRCC: fraud targeting newcomers · Canadian Anti-Fraud Centre: job scams · CAFC: merchandise and rental scams · CAFC: romance scams · CAFC: what to do if you’re a victim · CAFC: report fraud