Issue

July 2020

Scams exploiting fears and isolation of older adults amid COVID-19


(NC) The pandemic has impacted lives around the world, including families across Alberta and especially seniors. The recent volatility of the markets, coupled with potentially lost retirement savings and social isolation, has created an environment of fear, uncertainty and vulnerability. Unfortunately, this is exactly the environment that scam artists prey upon.   

As COVID-19 continues to affect our lives, associated scams are emerging as fraudsters exploit the crisis to profit from people’s fears and misinformation.

There are many types of fraud popping up. One example includes phishing and malware scams where fraudsters pose as government agencies, national or global health authorities and send phishing emails or texts designed to trick people into downloading malware or providing personal identification and financial information. They can appear to be real, but err on the side of caution and think carefully before providing anyone with this information.

Another common scam is pump-and-dump schemes involving publicly traded small “shell” companies. Scam artists will “pump” up the company’s value by enticing investors to purchase stock with inflated or false claims, then quickly “dump” their stock before the hype ends. This results in a substantial payout for the scam artist while the remaining investors lose their money. Often pump-and-dump schemes can be related to companies claiming to have products or services that will prevent, detect or cure COVID-19 infection. Be cautious of any claims that a company has a solution to help stop the coronavirus outbreak.

There are multiple ways that fraudsters will target an individual. According to a 2020 study conducted by the Alberta Securities Commission, some of the most common ways Albertans 55-plus believed they were approached with a potentially fraudulent investment scheme were:

  • Through a friend, neighbour, co-worker or family member, or from a member of a club, group or organization they belong to (32 per cent)
  • By a stranger calling over the telephone (22 per cent)
  • From email spam (23 per cent)

When considering an investment opportunity, always read the fine print and research the investment – no matter how it was presented to you. Don’t be lured in by promises of easy returns; more likely you’ll be asked for money up front that you’ll never see again.

Remember that anyone selling investments needs to be registered with provincial securities regulators. Find more information on how to recognize and avoid these scams and to check the registration of any individual or firm offering you an investment opportunity at checkfirst.ca.


Media Attachments Related Posts
Terms of Use

All News Canada content is provided free of charge. Any source/sponsor of the information must also be identified as presented. For articles, credit of usage must be attributed to News Canada with "(NC)" at the beginning of an article or "www.newscanada.com" or "– News Canada" at the end. Images are only to be used with corresponding editorial copy. Usage of News Canada content constitutes your acceptance of these terms and an agreement between you and News Canada.

Disclaimer: Comments and opinions in News Canada content are those of their respective contributors only. The views expressed do not necessarily represent the views of News Canada Inc., its management or employees. News Canada Inc. is not responsible, and disclaims any and all liability, for the content of comments provided by contributors.