What Fig’s Fraud Team Sees Every Day (And What Canadians Can Learn From It)
Most scams don't start with someone believing they're being scammed.
They start with what appears to be a good opportunity.
At Fig, our fraud team reviews applications every day and regularly speaks with Canadians who have unknowingly become targets of financial fraud. While scams come in many forms, from investment fraud to job scams and impersonation schemes, the warning signs are often remarkably similar.
Over time, our team has noticed patterns that appear again and again.
Understanding these patterns can help Canadians recognize a scam before significant financial damage occurs.
The Scam Usually Starts Long Before a Loan Application
One of the biggest misconceptions about fraud is that it begins when someone applies for a loan.
In reality, many scams begin weeks or even months earlier.
For example, investment scam victims often encounter an advertisement on social media promoting cryptocurrency, digital assets, trading platforms, or exclusive investment opportunities. Others may be contacted through text messages, phone calls, email, dating platforms, or online job postings.
By the time someone reaches the point of applying for financing, they may have already invested savings, withdrawn funds from existing accounts, or exhausted available credit.
What we often see is that the loan application is not the beginning of the fraud. It is the final stage.
The Opportunity Always Looks Legitimate
Fraudsters understand that people are cautious.
That's why modern scams rarely look suspicious at first.
The websites are professional. The emails look polished. The conversations feel genuine. Some scams even include convincing online dashboards, customer support representatives, and documentation that appears legitimate.
This is one reason fraud remains such a significant issue across Canada.
According to the Canadian Anti-Fraud Centre (CAFC), Canadians reported hundreds of millions of dollars in fraud losses in recent reporting periods, with cyber-enabled fraud accounting for the majority of reported losses.
Fraud is no longer limited to obvious scams. It increasingly mimics legitimate businesses and financial services.
The Most Common Red Flag We See Is Urgency
Although scams vary, one warning sign appears consistently.
Pressure.
Fraudsters often create a situation where victims feel they must act immediately.
They may be told:
The investment opportunity is about to close
Their account is at risk
A payment must be made today
A job opportunity will disappear if they wait
Additional funds are needed to unlock earnings
The goal is simple: prevent the victim from stopping to verify information.
Legitimate financial opportunities generally allow time for research, questions, and independent verification.
Borrowing Money To Make Money Is Often A Warning Sign
One of the patterns our fraud team encounters most frequently involves victims being encouraged to borrow money.
In investment scams, victims may initially invest a small amount and see what appears to be significant growth. As trust builds, scammers encourage larger contributions.
People are often told they should:
Use savings
Draw from existing credit products
Take out a loan
Borrow to maximize returns
This is a major warning sign.
While legitimate investing involves risk and personal decision-making, any opportunity that pressures someone to borrow money quickly to participate deserves careful scrutiny.
This pattern is particularly concerning given that investment scams remain the highest-loss fraud category reported by the CAFC.
Scammers Target Emotions, Not Financial Knowledge
Many people assume fraud only affects individuals who lack financial experience.
Our experience suggests otherwise.
Scammers are extremely effective at building trust.
Some exploit optimism by promising financial success. Others create fear by claiming an account has been compromised. Some build personal relationships over weeks or months before introducing financial requests.
The scam succeeds because it targets human behaviour, not because the victim lacks intelligence.
Anyone can become vulnerable under the right circumstances.
Older Canadians Face Elevated Risk
While fraud affects Canadians of all ages, some groups appear more frequently in scam reports.
Fig's internal fraud data shows that individuals over 60 are significantly overrepresented among known scam victims. More than two-thirds of known loan-related scam cases involved individuals aged 65 and older.
National data reflects a similar concern. According to the CAFC, Canadians aged 60 and older reported more than $111 million in investment scam losses alone.
These findings highlight why conversations about fraud prevention remain so important for families and communities.
What Fig Does When Something Doesn't Look Right
Fraud prevention isn't always about catching criminals.
Often, it's about helping people pause.
When our fraud team identifies potential warning signs, the goal is not to accuse or alarm applicants. Instead, the team focuses on education, asking questions, and helping people assess whether an opportunity may be legitimate.
In many cases, a simple conversation can help someone recognize warning signs they may not have previously considered.
In 2025, approximately 80% of known scam cases reviewed by Fig were prevented through a combination of human intervention, customer education, and fraud detection tools.
Five Questions To Ask Before Sending Money
When considering any financial opportunity, ask yourself:
1. Am I being pressured to act immediately?
If the answer is yes, slow down.
2. Has someone encouraged me to borrow money to participate?
This should trigger additional caution.
3. Can I independently verify the company?
Do not rely solely on information provided by the person promoting the opportunity.
4. Can I withdraw my money today?
Difficulty accessing funds is often a warning sign.
5. Have I spoken to someone I trust?
A second opinion can provide valuable perspective.
Final Thoughts
The scams change.
The technology changes.
The stories change.
But many of the underlying tactics remain the same: creating urgency, building trust, and encouraging people to send more money.
At Fig, fraud prevention is an important part of protecting applicants and helping Canadians make informed financial decisions. While technology plays an important role, awareness remains one of the strongest defences against fraud.
Sometimes the most effective protection is simply slowing down, asking questions, and taking the time to verify before acting.
Disclaimer: This content is general in nature and is provided for informational purposes only. Fig Financial Inc. is not a financial advisor and does not offer financial planning services. This content may contain references to products and services offered through Fig’s loan marketplace.
