Common Scams Targeting Newcomers in Canada: How to Protect Yourself

Why Newcomers Are Targeted by Scammers

Scammers target newcomers because they know that people who are new to Canada may not be familiar with how government agencies, landlords, employers, and financial institutions actually operate. Newcomers may also be more reluctant to question authority figures, especially if they fear consequences related to their immigration status. Language barriers can make it harder to recognize when something is not legitimate. Understanding the most common scams and how they work is your best defence against becoming a victim.

The Canadian Anti-Fraud Centre (CAFC) is Canada's central agency for collecting information and intelligence on fraud. They report that Canadians lose hundreds of millions of dollars to scams every year, and the real number is likely much higher because many victims do not report the crime. Being informed and vigilant can protect you and your family from financial loss and emotional distress.

CRA Phone and Email Scams

One of the most common scams targeting newcomers involves fake calls or emails from someone claiming to be from the Canada Revenue Agency (CRA). The caller may say you owe taxes, that there is a warrant for your arrest, or that you will be deported if you do not pay immediately. They typically demand payment through gift cards, cryptocurrency, or wire transfer, and may threaten you with police action.

This is always a scam. The real CRA will never threaten you with immediate arrest, demand payment by gift card or cryptocurrency, ask for personal information by email, or use aggressive or threatening language. If you receive a suspicious call, hang up immediately. You can verify any legitimate CRA communications by logging into your My Account on the CRA website or calling the CRA directly at 1-800-959-8281.

How to Recognize a CRA Scam

Red flags include: receiving an unexpected call claiming you owe money, being told to pay immediately or face arrest, being asked to pay with gift cards (iTunes, Google Play, etc.), receiving a pre-recorded message from "the CRA," and being asked for your Social Insurance Number (SIN) or banking information over the phone. Legitimate CRA contacts typically begin with a mailed notice, not a phone call or email. If you are unsure, hang up and call the CRA yourself using the official number.

Rental Scams

Finding housing is one of the first challenges newcomers face, and scammers exploit this urgency. Rental scams typically involve fake listings for properties that do not exist or that the scammer does not own. The scammer may ask you to send a deposit or first month's rent before you have seen the property, claiming the unit is in high demand and will not be available for long. They may use photos stolen from legitimate listings or real estate websites.

To protect yourself: never send money before viewing a property in person, be suspicious of listings that seem too good to be true (unusually low rent for the area), verify the landlord's identity and ownership of the property, never wire money or pay with gift cards, and be cautious of landlords who claim to be out of the country and cannot show you the property. For more housing guidance, read our guide to finding housing in Canada.

Red Flags in Rental Listings

Watch for these warning signs: the rent is significantly below market rates, the landlord refuses to meet in person, you are asked to pay via wire transfer or cryptocurrency, the listing uses stock photos or images that appear on multiple different listings, the landlord asks for excessive personal information before a viewing, and the lease or rental agreement looks unprofessional or contains unusual terms.

Job Scams

Job scams prey on newcomers who are eager to find employment. Common job scams include: fake job offers that require you to pay upfront fees for training, equipment, or "registration"; cheque cashing schemes where you are sent a cheque and asked to deposit it and send part of the money back; and work-from-home scams that promise high earnings for minimal work. Some scams may even use the names of real Canadian companies to appear legitimate.

Legitimate employers in Canada will never ask you to pay money to get a job, request your banking information before you are hired, send you a cheque and ask you to return part of it, or guarantee high income with no experience or qualifications required. If a job opportunity seems too good to be true, it probably is. Use trusted job search resources and verify company information before applying. Our guide to finding a job in Canada can help you navigate the legitimate job market.

Immigration Fraud

Immigration fraud is particularly dangerous for newcomers because it can affect your legal status in Canada. Common forms include: fake immigration consultants who charge high fees and provide false or no services, scammers who claim they can speed up your immigration process for a fee, fake government websites or emails that ask for personal information and payment, and unauthorized individuals who offer to help with immigration applications but are not licensed to do so.

In Canada, only licensed immigration consultants (members of the College of Immigration and Citizenship Consultants), lawyers, and paralegals who are members of a Canadian law society are authorized to provide immigration advice for a fee. Always verify that anyone offering immigration services is properly licensed. You can check the College's public register to confirm a consultant's status. Never pay anyone who guarantees a specific immigration outcome, as no one can guarantee approval of an application.

Protecting Your Immigration Status

Never give your original immigration documents to anyone other than a verified, authorized representative. Keep copies of all your immigration documents in a secure location. Be wary of anyone who asks you to sign blank forms or documents you do not understand. If you need immigration help, contact Immigration, Refugees and Citizenship Canada (IRCC) directly or seek help from a licensed professional.

Romance Scams

Romance scams involve a scammer who builds an emotional relationship with you online and then asks for money. These scammers often use fake profiles on dating websites, social media platforms, or messaging apps. They may spend weeks or months building trust before making their first request for money, typically claiming they need help with an emergency, travel costs, or medical bills. Romance scams cause significant financial and emotional harm.

Be cautious if someone you have met online professes strong feelings very quickly, avoids meeting in person or via video call, claims to live far away or be travelling for work, asks you to send money or gift cards, or shares a story that seems designed to elicit sympathy and financial help. Never send money to someone you have not met in person, regardless of how well you feel you know them online.

How to Report Scams in Canada

If you have been targeted by a scam or have lost money to fraud, reporting it helps protect others and may help law enforcement catch the perpetrators. Report scams to the Canadian Anti-Fraud Centre online or by calling 1-888-495-8501. You can also report to your local police, especially if you have lost money or shared personal information.

If you shared financial information, contact your bank immediately to secure your accounts. If you shared your SIN, contact Service Canada and the two Canadian credit bureaus (Equifax and TransUnion) to place a fraud alert on your file. For tips on managing your finances securely, see our guide to opening a bank account and our guide to building your credit score.

General Tips to Protect Yourself

Stay safe by following these general principles: be skeptical of unsolicited contacts (calls, emails, texts, social media messages), never share personal or financial information with unverified individuals or organizations, research any offer or opportunity before committing money or information, trust your instincts (if something feels wrong, it probably is), talk to a trusted friend, family member, or settlement worker before making decisions under pressure, and remember that legitimate organizations will give you time to make decisions and will not pressure you to act immediately.

WelcomeAide is here to support your safety and settlement in Canada. Our AI Newcomer Navigator can answer your questions about scams, fraud prevention, and other topics in your language. Explore our blog for more newcomer guides, learn about our mission, or see how to get involved in supporting newcomer communities across Canada.