Financial scams targeting older Canadians are a growing concern, with fraudsters often preying on loneliness and kindness following significant life changes like the loss of a spouse. A recent inquiry from a concerned niece, Michelle, highlights a common scenario: an aunt, recently widowed and living with limited family support, has begun sending money to people who call her, believing she is helping those in need.
Starting a Supportive Conversation About Financial Risk
Experts like Peta Wales, President and CEO of the non-profit Credit Counselling Society, emphasize that the first step is a calm, non-judgmental conversation. The goal is to understand the situation without making the senior feel controlled or infantilized. Significant life transitions can affect decision-making abilities, especially when someone is feeling isolated and seeking connection.
Begin by asking gentle, open-ended questions to learn what your loved one believes is happening. Express your concerns from a place of care, framing the discussion as a collaborative effort to review finances so they can continue their activities and relationships safely. This approach helps preserve dignity while addressing potential vulnerabilities.
Implementing Practical Financial Safeguards
If your loved one is comfortable, a practical review of finances is a powerful protective measure. Sit down together and examine recent bank, credit card, and e-transfer statements. Look for patterns like repeated small payments to unfamiliar recipients, frequent cash withdrawals, or transfers they don't recall authorizing.
Setting up real-time account alerts with their financial institution is a crucial defence. These notifications can help spot suspicious activity immediately. Many banks and credit unions can also implement daily withdrawal limits or add extra security flags to accounts, acting as a guardrail against large, impulsive transfers pressured by a scammer.
Another effective strategy is to become an accountability partner. Agree on a simple rule: any unplanned expense above a modest, pre-set amount triggers a mandatory 36- to 48-hour cooling-off period. This pause allows time for a quick check-in with a trusted family member, which can break the urgent momentum a scammer relies on.
Reducing a Scammer's Ability to Make Contact
Scammers often initiate contact through phone calls, texts, emails, or social media. Encourage your loved one to let unknown callers go to voicemail and to ignore and delete unsolicited messages. A vital habit to instill is this: if anyone requests cash, e-transfers, gift cards, or cryptocurrency, end the call immediately. They should then verify the request with a family member, even if the caller's voice sounds familiar.
Technological tools can significantly reduce these intrusions. Help them activate call-blocking features on their smartphone so only saved contacts ring through, or use their phone carrier's tools to filter unknown numbers. Fewer scam calls mean fewer opportunities for fraudsters to build deceptive relationships.
What to Do If Money Has Already Been Sent
If you discover funds have been transferred, act swiftly. Contact the senior's financial institution immediately. Canadian banks may be able to cancel an e-transfer while it is still pending, but not after it has been accepted or if the recipient uses autodeposit. The bank can flag the account, stop pending transfers, and guide recovery steps.
Be particularly wary of cheque-based scams, where a fraudster sends a cheque for the victim to deposit, then asks for a portion of the money to be sent back. The initial cheques may clear to build trust, but the larger ones will eventually bounce, leaving the victim liable for the full amount.
Preserving Independence with Proactive Measures
Formal legal steps like a Power of Attorney are significant and may not be necessary initially. Instead, consider practical safeguards that maintain autonomy. Many financial institutions allow clients to name a "trusted contact" on their profile. This does not grant account access but permits bank staff to reach out to that person if they suspect the client is being manipulated or notice unusual activity.
The overarching principle is to keep compassion at the centre of every interaction. Frame your involvement as teamwork—offering to help review a confusing bank notice or a suspicious message together. This supportive, consistent presence helps the senior stay connected to trusted individuals rather than unknown callers, protecting both their financial stability and their emotional well-being.
For more information on managing money or debt, the Credit Counselling Society can be contacted at 1-888-527-8999 or through their website at nomoredebts.org.
