In a year where lives were destroyed by the many impacts of COVID-19, over 46,000 Canadians also fell victim to scams. Nearly 50% of consumers that were scammed, reported it resulted in a financial loss.
In a recent report published by the Better Business Bureau, statistics indicate many successful cons took advantage of the pandemic’s effects.
2020 brought financial issues for many people that left them in need of money to offset their financial troubles.
“The pandemic has created an environment that is ripe for financial scams,” explained Kristin Matthews, Marketing & Communications Specialist for BBB Atlantic
That’s why advance-fee loans rank as the riskiest of scams. In 2020, Canadians lost an average of $1,400 per person to these loans that required “upfront fees.” In Canada, it is illegal to require fees before giving out a loan.
Another scam that used financial issues to take advantage of citizens was sweepstakes and lottery scams.
While they lost relevance for several years, victims reported that the financial strain tainted their thinking, leading them to believe they had won a cash prize.
The convenience of online shopping resulted in online purchase scams having the highest success rate of all. 75% percent of people that encountered scams for online purchases ultimately fell for them.
COVID-19 also caused a decrease in the effectiveness of certain scams. Travel, which has been notorious in the past for the money it costs people, did not crack the top 10.
The full list was as follows:
- Advance Fee Loan
- Online Purchase
- Home Improvement
- Cryptocurrency
- Employment
- Fake Invoices and Supplier Bills
- Credit cards
- Phishing
- Sweepstakes and Lotteries
- Counterfeit Products
