If you’ve ever been scammed, you might think it’s over — but for fraudsters, it may only be the beginning.
Falling victim to a scam is a distressing experience, but what’s even more alarming is that fraudsters often come back for more. They often keep records of their victims and use that information to exploit them again, preying on those who have already suffered financial losses and exploiting their desperation. Understanding why and how scammers do this can help you protect yourself and others.
Let’s take a closer look at how scammers retarget victims.
Recovery scams
Among the most insidious tactics used by fraudsters is the recovery scam, which usually involves demanding payment upfront for their so-called services — whether it’s a fee, legal cost or a processing charge. They may also ask for sensitive personal information such as bank details, Social Insurance Numbers (SIN) or passwords under the pretense of verifying your identity or processing a refund.
After an initial fraud, scammers may contact you again, posing as:
- A government agency or law enforcement claiming they can recover your lost funds for a fee or asking for money to assist in an investigation.
- A fraud recovery service proposing legal or financial assistance in exchange for upfront payment.
- A consumer protection agency or a financial institution, apologizing for the fraud, and offering a refund if you provide more personal information.
- A class-action lawsuit representative claiming you’re eligible for compensation — but requiring payment to join.
Sucker lists
Once a scammer successfully defrauds someone, that individual can be added to what’s known as a sucker list — a database of past victims that fraudsters buy, sell or trade. The existence of sucker lists is not a recent phenomenon; an early mention can be found in a 1929 Time article describing a list of individuals who had contributed to a lobbyist fund. Once a person is on a sucker list, they may be repeatedly contacted for different scams, including fake investment opportunities, fraudulent lottery winnings and, of course, recovery scams.
Tailor-made scams
Scammers may also use knowledge of past vulnerabilities to create a new scam tailored to the victim’s history and perceived weaknesses. Instead of repeating the same scam, they may change their approach — including their method of communication, identity or organization — while leveraging the victim’s prior experience. For example, someone tricked by a fake investment scheme might later be contacted about an exclusive new financial opportunity.
How to protect yourself
Understanding how and why scammers operate is key to breaking the cycle of fraud. Here’s what you can do to avoid being victimized again:
- Be skeptical of recovery offers: If someone contacts you claiming they can recover lost money for a fee or asks for personal information such as bank details, SIN or passwords, it’s likely a scam.
- Verify all claims: If you receive an unexpected call or email about a past scam, contact the organization directly through official channels. Do not use phone numbers or email addresses that may have been provided by a scammer.
- Avoid providing personal information: Scammers may ask for sensitive details such as your banking information, SIN or copies of identification under the guise of verifying your claim or providing assistance. Never share personal information with unverified sources.
- Stay informed: Keep up with the latest scams through the Canadian Anti-Fraud Centre (CAFC) and educate yourself on fraud prevention strategies.
By recognizing the warning signs and reporting fraudulent activities, Canadians can protect themselves and others from scams. Share this information and talk about it with your friends and loved ones — it could be a conversation that makes all the difference in a future fraud attempt.
If you suspect fraud, always report it to the CAFC at www.antifraudcentre-centreantifraude.ca or call 1-888-495-8501.