Suspecting that a loved one has fallen victim to financial fraud can be worrisome. It’s not always easy to know how to respond or how to broach the subject with the person involved. They may feel embarrassed, ashamed or reluctant to talk about their situation. To help you, learn how to better recognize the signs of fraud, start the conversation, and offer your support.

Recognizing the red flags of fraud

Fraudsters may pose as a new friend, a financial adviser or even a romantic partner. They often take the time to gain their victims’ trust. That’s why it’s not always easy to recognize fraud, especially when it develops gradually.

Some behaviours may, however, make you think twice.

Your loved one may:

  • suddenly start talking about an investment opportunity that promises high, risk-free returns;
  • mention that this opportunity was proposed by a "new friend" or an "adviser" you’ve never heard of before;
  • have only interacted with this person online; or
  • invest in products inconsistent with their usual investing habits or investor profile, such as crypto or foreign exchange (FOREX).

Certain recent behaviours or events could also be warning signs.

For example, your loved one may have:

  • felt pressured to make a decision;
  • sent money by electronic funds transfer or credit card;
  • shared their PIN or personal information; or
  • allowed someone to access their computer remotely.

Understanding your loved one's reaction

It’s not always easy to spot fraud, especially when you are personally involved in the situation.

Fraudsters often take the time to build a relationship with their victims. As the interaction develops, the person may come to believe that the opportunity is in fact legitimate or that the individual they are dealing with is acting in their best interest.

In some cases, the relationship developed with the fraudster becomes so strong that the warning signs seem less convincing than the bond of trust that has been established.

It’s also very possible that your loved one may be reluctant to question the situation, especially if they’ve already invested time, energy or money in it. Many people mistakenly believe that they’re less vulnerable to fraud than others or that they would know how to spot a scam. Admitting that you may have been deceived isn’t easy.

Understanding this reality can help you approach the conversation with greater empathy.

Helping a loved one who falls victim to fraud

If you are concerned that a loved one may be a victim of fraud, it can be tempting to tell them directly what you think. However, this approach can sometimes shut down communication, especially if the person already has a trusting relationship with the fraudster.

First and foremost, try to understand your loved one’s perspective. What convinced them? What are they gaining from this relationship or investment opportunity? By better understanding their experience, the easier it will be to have a constructive conversation.

To start the conversation, use open-ended questions. For example:

  • How did you hear about this opportunity?
  • What convinced you to invest?
  • How long have you been in contact with this person?

The goal isn’t to convince your loved one that they’re a victim to fraud, but to encourage them to reflect on their situation. These questions can help them identify certain inconsistencies or red flags on their own.

Also, take the time to listen to your loved one’s perspective without judging them. A single conversation won’t always be enough. Some people need time before they start to question a situation or accept that they might be the victim of a scam.

Remind your loved one that a scam can happen to anyone. Avoid making them feel guilty or implying that they should have spotted the signs earlier.

If your loved one is open to discussing the situation, suggest that they verify certain information with you. For example, you could check the AMF register or contact the AMF Information Centre to get information about an individual or firm proposing an investment. Taking these steps together can help your loved one step back and assess the situation from a fresh perspective.

Supporting a loved one who is ready to take action

When your loved one is ready to take action, your support can help them through this stage. The steps may seem complex or intimidating, especially if they have just realized that they’ve been deceived.

In particular, you can help them:

  • cut off communication with the fraudster;
  • change their passwords;
  • save relevant messages and documents to prevent them from being deleted or lost (e.g.: take screenshots of exchanged messages);
  • gather useful information (e.g.: the fraudster's telephone number, total amount lost, account number); and
  • establish a timeline of events.

Some people will need time before taking action. Respect their pace and be patient. The important thing is that they the necessary information and resources when they’re ready.

To learn more about the steps to take after falling victim to fraud, refer to the You're a victim of fraud? page. You may also contact the AMF Information Centre if the situation involves an investment or someone claiming to offer financial services.

Insight

A protective measure you should know about

Did you know that you can name a trusted contact person (TCP) to help protect your investment accounts?

The TCP may be contacted by a financial stakeholder in certain situations, particularly if they suspect financial exploitation or have concerns about a person’s ability to make financial decisions.

Naming a TCP is a preventive measure that can help ensure you’re better protected.

End of the insight

Staying vigilant after a fraud incident

Keep in mind that uncovering a scam does not always put an end to a fraudster's attempts.

In some cases, fraudsters may contact their victims again, claiming they can help them recover the money they lost. They may pose as lawyers or representatives of financial institutions or companies specializing in recovering funds.

If your loved one has fallen victim to fraud, remind them to be cautious with anyone claiming they can quickly recover the money they lost, especially if they ask for additional fees or personal information.

Helpful resources