The following article first appeared on My Money Matters.

Investment and crypto scams

Get-rich-quick schemes have been around for decades, if not longer. For generations, fraudsters have tried to trick people into “investing” in something that is guaranteed to deliver a big payout – from imaginary stocks to swampland in Florida to the original Ponzi scheme of the 1920s. Today, investment scams are more sophisticated than ever as fraudsters leverage the public’s interest in – and relative lack of knowledge about – cryptocurrency.

With the internet making it easy to connect with potential investors, online payment apps making it easy to transfer money, and fake trading platforms apparently easy to develop, digital crypto scams are rampant. Last year, according to INTERPOL, scammers defrauded victims around the world of upwards of $1 trillion and in 2024 the scams are still highly prevalent. Even Netflix released a true-crime documentary this year, about three fraudsters who conned millions from investors.

Fake trading platforms can be very convincing, and their promises of no-risk high returns can be hard to resist. However, the adage of “if it looks too good to be true, it probably is” certainly rings true when it comes to crypto scams.

Romance scams

Romance scams are typically carried out online through dating sites, apps or other social media channels. They start when a cybercriminal creates a fake profile and contacts an individual looking for a romantic connection. The scammer will then start to build a relationship and aim to gain trust very quickly. Once that’s done, they will ask for money, typically for the purposes of airfare (to come visit) or to get themselves or a loved one out of trouble.

Victims of romance scams come from all walks of life, income levels, education, age, gender and profession. The reason they are so successful is that scammers put a lot of time and effort into establishing a connection that feels real and meaningful – and once the victim has fallen in love, it’s easy to miss the warning signs of the scam.

Romance scams and crypto scams have become intertwined, as would-be romantic partners convince their victims to make investments in crypto as part of their scam. Victims often don’t realize until it’s too late that both their romantic interest and their money have disappeared.

Employment scams

With challenging economies worldwide and many people finding it difficult to secure meaningful employment, job scams are on the rise. From unsolicited email offers to fake hiring managers promoting work on social media, these scams lure job seekers with promises of work, advancement, great pay and benefits.

There are a number of employment schemes running at the moment. Here are some of the most common:

• Fake job listings – these listings normally ask candidates to pay a fee to complete their application or get started
• Fake hiring firms – scammers will pose as an agency, institution or hiring firm and request a screening fee
• Email offers – fake job offers (often about jobs you never applied for) may ask for sensitive information such as ID and bank account numbers to get you onboarded
• Online interviews – may ask candidates to input sensitive information in order to gain access to the interview
• Work-from-home jobs – where you may be required to send money to get equipment, like a computer and monitor

To protect yourself from job scams, be sure to do your research before applying for a position. Visit the company’s website and compare what you see against what’s in the job listing. Also beware of offers that seem too good to be true, and don’t engage in requests to transfer funds – no legitimate employer will ask you to write cheques, send gift cards or send wire transfers to “get started” on a job.

AI deepfakes

Deepfake technology is a type of artificial intelligence (AI) that’s used to create convincing fake images, videos and audio recordings. A deep fake video or image, therefore, looks like a real person, but it’s been digitally altered. How is this technology being used in cyberfraud?

In one of the most sensational cases of 2024, a Hong Kong finance worker was duped into transferring more than $30 CAD million to fraudsters who used deepfake technology to disguise themselves as the firm’s chief financial officer and other senior colleagues. In other cases, scammers will clone the faces and/or voices of celebrities to try to trick people into donating to a cause or investing in stock or crypto. There are also AI chatbots that are being used to create fake conversations over dating sites, adding a new dimension to romance scams.

As deepfake technology becomes more widespread, it is being increasingly used in cyber scams.

Phishing scams

Phishing has long been one of the most common and popular types of scams. This is where victims might receive a message impersonating an individual or organization (i.e., a delivery company, financial institution, or government agency) claiming that there’s an issue and immediate action is required in order to fix it. Alternatively, the message may say that you’re owed a refund or that you qualify for a special prize, which you need to claim right away.

The goal of a phishing message is to either get you to click on a link that takes you to a fake website, or to share personal or financial information. Often urgent in nature and unsolicited, phishing messages are increasingly convincing and put pressure on their victims, not giving them time to think through their actions.

Grandparent scams

The grandparent scam is a highly pervasive and successful scam that preys on the emotions of family members. In this scam, a grandparent receives a phone call from a fraudster pretending to be their grandchild. The fraudster may use deepfake technology to mimic a grandchild’s voice, making the call all-the-more convincing. Saying they are hurt or in trouble, the fraudster will convince the grandparent that they need money immediately.

Travel scams

Travels scams have been on the rise since the COVID-19 lockdowns, as many people have a pent-up desire to travel yet are faced with higher travel costs, including airfare and hotels. While everyone could use a great deal on travel, some offers are too good to be true, as fraudsters try to trick would-be travellers out of their vacation funds.

From special rates on accommodations to seat sales, cyber criminals successfully draw in vacationers with low prices. Often, they pose as everyday people who can no longer use the tickets they bought. This kind of fake advertising will show up on social media, as well as vacation booking platforms.

Staying safe

The top scams of 2024 are a mix of proven techniques and new technology that help fraudsters create convincing scams that trick victims out of their savings and their personal information.

The best way to protect yourself and your loved ones is to stay informed. As scams are changing all the time, visit the RBC Scam Alerts page to learn the latest scams today.

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This information is not intended as nor does it constitute tax or legal advice. Readers should consult their own lawyer, accountant or other professional advisor when planning to implement a strategy. This information is not investment advice and should be used only in conjunction with a discussion with your RBC Dominion Securities Inc. Investment Advisor. This will ensure that your own circumstances have been considered properly and that action is taken on the latest available information. The information contained herein has been obtained from sources believed to be reliable at the time obtained but neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers can guarantee its accuracy or completeness. This report is not and under no circumstances is to be construed as an offer to sell or the solicitation of an offer to buy any securities. This report is furnished on the basis and understanding that neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers is to be under any responsibility or liability whatsoever in respect thereof. The inventories of RBC Dominion Securities Inc. may from time to time include securities mentioned herein. RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC Dominion Securities Inc. is a member company of RBC Wealth Management, a business segment of Royal Bank of Canada. ® / TM Trademark(s) of Royal Bank of Canada. Used under license.