I created this website because fraud is everywhere, and people aren’t talking about it enough to stop it. As fraud increased, bad actors targeted people across every demographic, intent on profiting by deliberately misleading others. I want to do something about it.
What is fraud?
That’s what fraud is. It is the intentional act of lying, or hiding the truth, to deprive another of something of value, like property, money or safety. There are frauds which most of us would recognize, impersonation, identity theft, forgery and embezzlement; and then there’s the ones that we don’t think of as fraud at first, like bribery, extortion, and corruption. The Encyclopedia of Fraud (The Association of Certified Fraud Examiners, Inc., 2007) lists over 90 major types of fraud, many with lengthy minor associated frauds.
Who are the targets of fraud?
There’s a misconception that if you are the victim of fraud, you are gullible or naïve, that others would have figured it out long before you did. But the opposite is true. Anyone can be a victim of fraud. Different schemes target various demographics. For instance, teenagers (19 and under) are often targets of extortion schemes. Individuals in their 20’s are often targets of merchandise fraud. 30 to 49-year-olds are targets of service fraud, while those over 50 are targets for investment fraud. Identity fraud is a problem across all age groups. (Canadian Anti-Fraud Centre, 2024)
There should be no shame in admitting that you are a victim of fraud. Using a variety of techniques, fraudsters can be successful. The grandparents scheme uses urgency to get the victim to send money. The investment scheme uses promises of high returns and urgency to get the victim to invest. Bribery controls access to get payments or benefits. Asset misappropriation uses various cover-up schemes to hide the money they have taken. Fraud is not accidental; it is intentional.
Low reporting
Only 5-10% of fraud is reported. This statistic has been reported by the Association of Certified Fraud Examiners (ACFE) in its Report to the Nations , which specifically examines the impact of fraud in organizations, and by CTV News Ottawa. While there is some speculation about why fraud is not reported, the prevailing view is that people are either embarrassed or believe nothing will be done to investigate and prosecute the perpetrators.
Why reporting is important
It is important to report fraud for many reasons. The primary reason is that unreported fraud goes unchecked, giving fraudsters the courage to continue stealing from individuals and businesses. An employee who steals from a company and is let go without a criminal investigation often commits the same crime at their next workplace. The fraudster who commits investment fraud goes on to swindle someone else out of their savings. By reporting fraud, targets give authorities information that can help investigations, build cases, and convict fraudsters.
Protecting ourselves
So, how do we protect ourselves from fraud? We start by watching for red flags, like pressure, an employee living beyond their means, a deal that seems too good to be true, or a gut feeling that something isn’t right. We pay attention. CRA does not accept gift cards as tax payment, nor will they start by sending authorities to your door. It is doubtful that a long-lost relative you have never heard of will leave you money. A stranger giving you expensive gifts is not doing so out of the goodness of his heart.
We report fraud, including attempted fraud. Canada has a new reporting system for fraud and cybercrime, reportcyberandfraud.canada.ca. The header on the site reads, “Report fraud or cybercrime online, whether you are the victim, were targeted or are a witness.” That’s what we need to do, every time. We need to report the crime so that law enforcement and the government know the extent of what they are dealing with. When we understand the full extent of fraud, we can allocate the resources needed to fight it
Fraud has been around for centuries; it’s not going away, but we can lessen its impact on our lives by learning to recognize the signs, reporting attempts, and working together to share our knowledge.
Kathleen O’Donoghue, CFE
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