What Are Impersonation Scams and How to Protect Yourself

Most Canadians have received a suspicious text, email, or phone call at some point.

Maybe it looked like it came from your bank. Maybe it claimed to be from the Canada Revenue Agency (CRA). Or perhaps it appeared to be a delivery notification asking you to click a link.

At first glance, these messages can seem legitimate. That's exactly what scammers are counting on. This makes fraud prevention more important than ever.

Impersonation scams happen when someone pretends to be a trusted person or organization to convince you to send money, share personal information, or give them access to your accounts. As more of our financial lives move online, these scams have become increasingly common—and increasingly convincing.

The concern is understandable. According to the Fig Financial Barometer, 68% of Canadians say they are concerned about financial fraud when using online or digital financial services. At the same time, 79% say technology plays an important role in managing their finances, highlighting how important it is to balance convenience with security.

What Is an Impersonation Scam?

An impersonation scam is exactly what it sounds like: a fraudster pretends to be someone you trust.

That could be:

• A government agency

• A bank or credit card provider

• A delivery company

• A technology company

• Your employer

• A family member or friend

The goal is usually to create urgency and pressure you into acting before you have time to verify what's happening.

Scammers may ask for:

• Personal information

• Banking details

• Passwords or verification codes

• Gift card purchases

• Cryptocurrency payments

• Money transfers

While the story may change, the objective is almost always the same: gaining access to your money or personal information.

Common Types of Impersonation Scams

Government Scams

Scammers may claim to represent organizations such as the CRA or Service Canada. They often use threats involving unpaid taxes, fines, or legal action to pressure victims into making immediate payments.

Bank Scams

You may receive a text, email, or phone call claiming there has been suspicious activity on your account. The scammer may direct you to a fake website or ask for a verification code to "secure" your account.

Family Emergency Scams

Sometimes known as the "grandparent scam," this involves someone pretending to be a family member who urgently needs money because of an accident, arrest, or travel emergency.

Technical Support Scams

A scammer contacts you claiming your computer or device has been compromised. They may ask for remote access to your device or payment for unnecessary repairs.

How Can These Scams Affect You?

The impact of an impersonation scam can go beyond the immediate financial loss.

Victims may lose money directly, have their accounts compromised, or become targets of identity theft. In some cases, stolen personal information can be used to apply for loans, open new accounts, or commit additional fraud.

There can also be an emotional toll. Many victims report feeling stressed, embarrassed, or frustrated after discovering they've been targeted.

It's important to remember that scammers are skilled at manipulating emotions and creating convincing situations. Anyone can become a target.

Warning Signs to Watch For

While scams continue to evolve, many share common red flags:

• Pressure to act immediately

• Threats involving legal action or account closures

• Requests for secrecy

• Unusual payment methods such as gift cards or cryptocurrency

• Requests for passwords, PINs, or verification codes

• Links or attachments you weren't expecting

If something feels rushed or suspicious, it's worth taking a moment to verify before responding.

How to Protect Yourself

The best defence against impersonation scams is slowing down and verifying information independently. These simple fraud prevention steps can help reduce risk.

Verify Before You Act

If someone claims to represent a bank, government agency, or company, contact the organization directly using information from its official website. Avoid using phone numbers or links provided in the message.

Protect Your Accounts

Use strong, unique passwords and enable two-factor authentication whenever possible. Never share verification codes with anyone, even if they claim to be from your bank.

Be Careful What You Share Online

Scammers often use information from social media and public profiles to make their messages appear more convincing. Limiting what you share can reduce the risk of identity theft and social engineering.

Monitor Your Accounts Regularly

The Fig Financial Barometer found that many Canadians actively protect themselves from fraud by monitoring their accounts, using strong passwords, and enabling two-factor authentication. Regularly reviewing account activity can help you spot suspicious transactions early and supports ongoing fraud prevention.

What Should You Do If You Think You've Been Scammed?

If you believe you've been targeted:

1. Stop communicating with the scammer.

2. Contact your financial institution immediately.

3. Change passwords on affected accounts.

4. Save any messages, emails, or transaction details.

5. Report the incident to the Canadian Anti-Fraud Centre.

Acting quickly may help reduce the potential impact.

Final Thoughts

Impersonation scams work because they take advantage of trust, urgency, and emotion. Whether the message appears to come from a government agency, your bank, or someone you know, taking a moment to pause and verify can make all the difference.

Source

Fig Financial Barometer. Angus Reid survey of 1,516 Canadians conducted October 18–22, 2024. Findings on financial fraud concerns, digital financial services, and fraud prevention behaviours.

FAQs

Question: What is an impersonation scam and who might scammers pretend to be?

Short answer: An impersonation scam is when someone pretends to be a trusted person or organization to get you to send money, share personal information, or give access to your accounts. Scammers may pose as a government agency (like the CRA or Service Canada), a bank or credit card provider, a delivery or technology company, your employer, or even a family member or friend. They often create urgency and ask for things like personal or banking details, passwords or verification codes, gift card purchases, cryptocurrency payments, or money transfers.

Question: What warning signs should make me suspicious?

Short answer: Common red flags include:

• Pressure to act immediately

• Threats of legal action or account closures

• Requests to keep the interaction secret

• Unusual payment methods (gift cards or cryptocurrency)

• Requests for passwords, PINs, or verification codes

• Unexpected links or attachments

If something feels rushed or off, pause and verify before you respond.

Question: How should I verify a message or call that claims to be from my bank, the CRA, or a company?

Short answer: Slow down and verify independently. Don't use the phone numbers or links provided in the message. Instead, go to the organization's official website to find contact details and reach out directly. Only proceed once you've confirmed the request is legitimate. If you're asked for a verification code, treat it as a hard stop—never share codes with anyone.

Question: What steps can I take to protect my accounts and personal information?

Short answer:

• Use strong, unique passwords for each account

• Enable two-factor authentication wherever possible

• Never share verification codes with anyone

• Limit what you share publicly online to reduce social engineering risks

• Monitor your accounts regularly to spot unusual activity early

These habits help balance convenience with security and support fraud prevention while reducing the risk of identity theft.

Question: What should I do if I think I've been scammed or targeted?

Short answer:

1. Stop communicating with the scammer.

2. Contact your financial institution immediately.

3. Change passwords on affected accounts.

4. Save any messages, emails, or transaction details.

5. Report the incident to the Canadian Anti-Fraud Centre.

6. Acting quickly may reduce the potential impact.

DISCLAIMER: This article is for informational purposes only and is not intended as legal or financial advice.