Fraud and scam trends to watch in 2026

Ashan, a Toronto-based Uber driver in his mid-40s, moved to Canada to create a better life for himself and his family. A cautious investor who preferred gold and silver, Ashan had always avoided risky opportunities. But when a WhatsApp acquaintance introduced him to cryptocurrency, his curiosity got the better of him.

What started as a small investment of a few hundred dollars quickly grew into thousands. Each day, his new friend sent him updates on the soaring value of his crypto. Encouraged by what he thought were real gains, Ashan poured more and more money into the scheme. Then, one day, everything vanished: his "friend" disappeared, and the website tracking his investment went offline. Ashan lost $100,000.

When Ashan realized he'd been scammed, both his savings and his confidence were destroyed. "I wasn’t trying to make a fortune," he told Jim Helik, a financial literacy professor at Yorkville University who learned Ashan’s story during a ride. "I just wanted more money for myself and my family, and everybody seemed to be doing this." Ironically, Helik teaches about the risks of cryptocurrency scams, but the damage had already been done to Ashan's bank account. 

Fraud in Canada: Losses are rising, and scams are evolving

Sadly, Ashan's story is not uncommon. Canadians reported over $544 million in losses to fraud as of September 30, 2025, with more than 23,000 victims across the country. While reported losses fluctuated compared to 2024, the Canadian Anti-Fraud Centre (CAFC) continues to emphasize that fraud is significantly underreported. Many victims feel embarrassed, overwhelmed, or unsure of where to turn — meaning the true financial impact is likely far higher.

Fraudsters exploit trust, technology and emotions to craft scams that evolve faster than many people can keep up with. From cryptocurrency scams and fake job offers to seasonal phishing tied to tax rebates or holiday shopping, their tactics grow more sophisticated each year. The introduction of technologies like artificial intelligence makes the scams more personalized and harder to detect.

Scamming the scam detectors

In a troubling twist, even the Canadian Anti-Fraud Centre itself has become a target of impersonation scams. Fraudsters have been using the CAFC’s logo and letterhead, along with spoofed police phone numbers, to convince victims they are assisting with an active investigation. In some cases, scammers pose as “bank investigators” or tech support agents and claim the CAFC is involved. In others, they contact previous fraud victims and promise to help recover lost funds — for a fee.

The CAFC is clear: it will never ask you to transfer money, provide remote access to your computer, or pay to assist with an investigation. If someone claims otherwise, it’s a scam. If you’re unsure, contact the CAFC directly through its official website or phone number — never through contact details provided in a suspicious message.

The takeaway is sobering but empowering: always verify through official channels, and never rely on contact information provided in a suspicious message.

Read on to learn about the scams to watch out for, gain expert advice and take practical steps to protect yourself and your loved ones.

Scam categories to watch in 2026

Fraudsters often take existing scams and adapt them to leverage new technologies or exploit current events. Classic schemes like account takeovers, phishing and Canada Revenue Agency (CRA) scams remain common, but their execution has become more targeted and convincing.

Account takeovers and impersonation scams

Account takeovers often begin with impersonation scams, where fraudsters pose as trusted institutions such as banks, credit card providers, delivery services, or government agencies. Their goal is to trick you into revealing login credentials or sensitive information. Once they gain access, they can drain your funds, impersonate you, or use your account to target others.

How it works: These scams frequently start with emails, texts or phone calls that appear to come from a legitimate business. The messages may include urgent warnings about suspicious activity, password resets or account compromise, urging you to click a link or provide personal information. 

In some cases, fraudsters use spoofed phone numbers to make the call appear legitimate. Once you share your credentials or one-time password, they can take control of your account and sometimes use it to access others, creating a cascade of damage.

"Impersonation scams exploit trust and urgency," explains Jeffrey Horncastle, Acting Client and Communications Outreach Officer at the CAFC. "Fraudsters are using increasingly sophisticated social engineering techniques to convince victims they’re dealing with a legitimate organization."

Example: You receive a text that appears to be from your bank warning of suspicious activity. The message includes a link to verify your account. The site looks legitimate, complete with branding and logos, but it’s a fake designed to steal your login credentials.

How to protect yourself from impersonation scams

• Enable 2-step authentication: Also known as two-factor authentication (2FA) or multi-factor authentication (MFA), this security feature adds an additional layer of protection to your accounts. It requires multiple steps to verify your identity before granting access, such as entering a one-time password (OTP) code sent to your phone or email. Never share your OTP code with anyone.

• Create unique passwords: Avoid reusing passwords across accounts, as doing so can make it easier for fraudsters to gain access to multiple platforms. Consider activating biometrics to log in securely with your unique fingerprint or face ID.

• Be cautious of impersonation attempts: If someone contacts you claiming to be from your bank or another institution, do not rely on caller ID or links provided in the message. End the conversation and contact the organization directly using the phone number on the back of your card or their official website.

• Stay informed using the Tangerine Security Centre: Learn the different ways you can keep your account safe and stay up to date on the latest scams. Always contact Tangerine or other institutions directly through official channels to confirm any unusual requests.

• Monitor your accounts with Orange Alerts: Tangerine Clients can take advantage of Orange Alerts, including suspicious spend alerts, which provide real-time notifications about unusual account activity and help you quickly spot unauthorized transactions.

CRA and tax scams

Scams impersonating the CRA spike during tax season, preying on fear and urgency. Victims receive fake emails, texts, or phone calls claiming they owe back taxes or are eligible for unclaimed refunds. These messages often threaten penalties or offer tempting financial rewards, creating pressure to act quickly.

A common scenario: Abdul received a text about a $2,000 tax refund, along with a link to claim the funds. Instead of clicking, he logged into his CRA account directly and found no such refund existed. Many others aren’t as fortunate — phishing links can lead to fake websites designed to steal credentials or install malware.

What experts say: "The CRA scam evolves each year, but it always relies on urgency and fear to force quick action. Taking a moment to verify can make all the difference," emphasizes Horncastle.

How to protect yourself from tax scams

• Trust only official channels: Log in to your account at cra.gc.ca or contact the CRA directly to verify any claims. Consider setting up direct deposit to your bank account for any money you get from the CRA.
• Avoid clicking links: The CRA will never send text or email links for payments or refunds.
• Verify suspicious communications: Take the time to confirm the legitimacy of any message with the CRA before responding.

Recovery scams: targeted twice

One of the most concerning trends for 2026 involves “recovery” scams — where fraudsters target people who have already lost money. Victims may receive calls or emails from individuals claiming to be law enforcement, government agencies, or investigators working to recover stolen funds. They’re told they must pay a fee, provide financial details, or assist with a “sting operation” to catch the criminals.

In reality, it’s the same criminals — or a new group — exploiting vulnerability a second time. “If someone promises to recover your money for a fee, that’s a red flag,” the CAFC advises. Legitimate authorities will never require payment to return funds or conduct an investigation.

How to protect yourself from recovery scams

• Never pay to recover money: Law enforcement and government agencies will not ask for payment to assist with an investigation or return stolen funds.

• Verify independently: If someone claims to represent the CAFC, police, or a government agency, contact the organization directly using official contact information — not the details provided in the message. 

• Report, don’t respond: If you believe you’ve been targeted again, report it to your bank, local police, and the CAFC immediately.

AI-driven scams: a growing threat

Artificial intelligence has become a game-changer for fraudsters, enabling them to create highly convincing fake voices, videos, and messages. These tools make scams feel more real than ever.

Read more: Scams and AI: the new fraud frontier

Voice cloning and deepfakes

Deepfakes are a type of synthetic media created using artificial intelligence (AI) to manipulate or generate images, audio, or videos that appear real. In simpler terms, a deepfake can replace a person’s face or voice in a video or audio recording with someone else’s, making it look or sound as though that person said or did something they didn’t. 

One of the most alarming uses of AI in fraud is voice cloning, where scammers replicate a loved one’s voice using just a short audio sample. This has been used in grandparent scams, where fraudsters pose as distressed family members and request immediate financial help.

"In Ontario, scammers used voice cloning to impersonate a grandson involved in a car accident," says Dr. Tom Keenan, cybersecurity expert and author of Technocreep. "They combined this with spoofed caller IDs and a fake lawyer to convince an elderly woman to send over $21,000."

How to protect yourself from deepfake scams

• Create a family password: Ask for a detail only your loved one would know.
• Pause before acting: Scammers thrive on urgency. Taking time to verify can prevent costly mistakes.
• Stay skeptical: Don’t be afraid to pause or say "no”. If something feels off, trust your instincts. 

AI-enhanced phishing

AI is also being used to generate personalized phishing emails, mimicking the tone and details of trusted institutions. These messages often reference personal information gathered from social media, making them more convincing.

"Scammers know how to exploit the data you freely share online. Limiting your digital footprint can go a long way in protecting yourself," advises Horncastle.

Stay alert and aware of new scams, keep your data secure and carefully review all details if you receive a message.

Seasonal and news-driven scams

Scammers often align their schemes with seasonal trends and breaking news, targeting people when they’re distracted or emotionally invested.

Holiday scams

The holiday season is a hotbed for fraud. Fake package delivery notifications, counterfeit online storefronts, and bogus gift card deals are rampant.

"Holiday scams prey on the chaos of the season," warns Helik. "With so many distractions, people are more likely to overlook warning signs."

How to stay protect yourself from holiday scams

• Track packages directly: Check all expected deliveries with carriers using the official tracking numbers.

Awareness is your best protection

Fraud is constantly evolving, but so is awareness. The more informed you are — about new tactics, seasonal patterns, and the warning signs — the harder it becomes for scammers to succeed. Taking a moment to verify, question urgency, and protect your information isn’t just cautious — it’s powerful. And in a landscape where trust is often exploited, staying alert is one of the smartest financial decisions you can make.