Identity fraud (sometimes called “spoofing”) is a complex fraud where someone impersonates someone else (for example, a "financial adviser") in order to get hold of your personal information or money.
Understanding identity fraud
Although identity theft and identity fraud are similar terms, they differ in their objectives and methods. Identity theft involves stealing a person’s identity to commit criminal acts or obtain financial benefits. Identity fraud involves fraudulently using an individual’s personal data to deceive one or more other victims.
In this type of fraud, fraudsters attempt by every means possible to earn your trust and may even use AMF public information, such as the certificate numbers of registered representatives listed in the Register of firms and individuals authorized to practise. You can avoid falling into their trap by taking a few precautions.
Red flags
It may be difficult to recognize a fraud attempt. However, a red flag should go up when you receive
- An unsolicited text or e-mail message
- An official-looking letter asking you to pay back a debt you don’t know about
- A suspicious call or financial solicitation from a purported investment “expert”
Often, scammers involved in this type of fraud will attempt by every means possible to solicit you by masquerading as registered representatives or investment experts. They may, for example, offer you a once-in-a-lifetime "investment opportunity" or a loan at an attractive rate. In the course of their pitch, they will ask you for personal information and money to “open a file.” The moment they get what they want, they’ll vanish.
Benoît and the fake representative
For the past few years, Benoît has been dreaming about taking a long bike trip. He thought he could afford the trip in the spring, but unexpected renovation costs have thrown a wrench into his plans. While seeking a simple way to deal with the situation that does not involve reworking his entire budget, he gets a text message from a woman named “Jeanne” who says she wants to talk to him about a “once-in-a-lifetime” investment opportunity.
A seemingly legitimate message
The message is professional-sounding and carefully worded. “Jeanne” offers him a “no-risk, high-return” investment opportunity. She says she’s available to answer his questions and urges him to reply quickly so he doesn’t “miss the opportunity.” Being available from the outset helps establish a climate of trust.
Before going any further, Benoît does what he considers prudent: he looks “Jeanne” up in the AMF register. The name appears in the register, along with the person’s title. This puts his mind to rest, especially at a time when he is looking for a quick way to alleviate his financial burden.
In their text exchanges, “Jeanne” comes across as warm, convincing and responsive. She sends him a link to a well-designed, credible-looking website with a familiar logo, legal information and a neatly presented transaction space. Everything seems aboveboard. Benoît thinks he may have found a way to salvage his trip without having to overhaul his budget.
Borrowed credibility
Under step-by-step guidance, Benoît makes an initial transfer to open an account. A confirmation arrives almost immediately afterward that contains an account number, investment details and a professional signature. Everything matches what he found in the register. Feeling reassured, he sends a second payment a few days later. Benoît is already imagining himself on his bike and getting the most of a trip he thought he’d have to postpone.
What he doesn’t know is that he is the victim of a scam based on meticulous imitation:
- A real name pulled from the AMF register
- Fake contact information both in the text messages and on the website
- A transactional website that is an almost perfect replica of a legitimate site
- A fake (spoofed) phone number
- An email address that looks like a business address
Everything has been designed to use the credibility of a real practitioner without ever using an actual professional.
When the truth hits home too late
When Benoît requests a detailed statement, “Jeanne” becomes evasive, then stops responding entirely. The site won’t let him log in. He anxiously rechecks the register, but this time he also looks up the professional’s contact information.
He realizes that Jeanne’s actual contact details do not match the information he has been using up to this point. When he calls the number in the register, the real representative tells him she never contacted him and her identity is being used in an active scam.
Benoît is devastated. He thinks about his home renovations, the trip he has had to put off and how trusting he had been. He feels a mixture of confusion, anger and regret. The real Jeanne reassures him that he shouldn’t blame himself: the scam successfully mimicked the appearance of an authentic exchange. She reminds him that a financial practitioner will never solicit clients by text message, offer them no-risk, high return investments or pressure them to act with urgency.
In the future, Benoît will make it a habit to go to the source to check official contact details and use more than one reliable source to confirm them.
Tips and advice to protect yourself
Regardless of the method used to contact you, you can always ignore an unsolicited message. If you are contacted by phone, you can also tell the person you will call them back. If you really want to speak with the person, use the number in the AMF register, not the one given to you over the phone.
Never disclose personal information or send money before checking whether the individual communicating with you is in the Register of firms and individuals authorized to practise. Always use the contact information in the register. That way you’ll be able to check the identity of the person. If you have any doubts, contact our Information Centre.
When solicited, take some time to think things through: Don’t fall for promises of high returns for no risk and beware of opportunities that require urgent action on your part.
What to do in the event of fraud
Anyone can be a victim of fraud, so don’t beat yourself up. Fraudsters who steal information from real-life advisers for added credibility are adept at deceiving their victims.
- Refer to the You're a victim of fraud? page to find out what to do, and contact the AMF if the fraud involves purported investments.
- Break off all communications with the person or persons involved and stop sending money.
Be careful: Fraudsters often target their victims more than once. They may contact you claiming to be a lawyer, financial institution or firm specializing in financial fraud cases and offer to recover the money you lost.