Investment fraud cost Canadians more than any other scam in 2025, topping $351 million in losses
Investment scams drained more than $351m from Canadians last year, more than any other type of fraud, yet nearly nine in 10 people told a new TD survey they are confident they could spot one.
That confidence sits awkwardly beside their habits.
The survey, conducted by Léger, found that 89 percent of respondents feel sure they can identify a scam while 52 percent admit to behaviours that raise their exposure to it, from using public Wi-Fi for financial accounts to clicking links before verifying the source.
Tarundeep Dhot, vice president of fraud management at TD, called confidence "a double-edged sword" in fraud prevention.
Awareness is encouraging, he said, but overconfidence can trigger quick decisions or overlooked warning signs that scammers count on.
The other flagged habits include opening email attachments from unknown senders and downloading apps from unfamiliar sites.
Another 41 percent said they never consult resources or educate themselves on fraud prevention even as 46 percent encounter scams weekly or daily and 24 percent said they or a family member had fallen victim in the past year.
The stakes are steepest in the corner of the market advisors know best.
Canadians reported more than $704m in fraud losses across over 112,000 reports in 2025, the Canadian Anti-Fraud Centre said, up from $638m and 108,878 reports a year earlier.
Investment fraud led every category by dollar loss at $351m, the centre reported, ahead of romance scams at more than $63.3m and job scams above $50.6m.
The Competition Bureau, which released the figures during Fraud Prevention Month, noted that reported losses since 2022 have passed $2.4bn and that only 5 to 10 percent of frauds ever reach authorities.
Some of the losses run straight through the industry itself.
An Ontario investment advisor lost his registration for life after admitting he defrauded 25 clients of nearly $2m, Wealth Professional reported in January.
The reach extends abroad as well.
Days before the survey's release, the US Attorney's Office for the Northern District of Illinois indicted Canadian film producer Jason Cloth on seven counts of wire fraud.
He allegedly raised more than US$100m by overstating the value of film projects and paying earlier backers with fresh investor money.
A British Columbia case this month showed the fallout can catch even investors who came out ahead.
On July 3 the Supreme Court of British Columbia voided payments to the "net winners" of a Ponzi scheme that moved roughly $174m through 11 financial institutions between 2008 and 2020, ordering them to return any gains above their principal.
The operator issued about 2,508 promissory notes promising interest as high as 18 percent on Edmonton-area real estate deals that never existed.
As per Wealth Professional citing the ruling, the trustee has already settled with 28 investors for about $1.44m and is pursuing 12 more for roughly $2.5m, with individual claims running from about $42,000 to more than $789,000.
Retail schemes remain brisk alongside the investment cases.
Calgary police in April charged three men over a bank impersonation scheme that cost victims a combined $1.3m, CTV News reported.
Investigators said the offenders used technology to pose as victims' banks by phone, then sent couriers to collect cards later used to withdraw cash and buy gift cards and high-end goods.
Business owners showed a similar confidence gap, though more of them acted on it.
Some 46 percent said fraudsters had targeted their business in the past year and 88 percent felt confident spotting fraud aimed at their operations.
On defences, 81 percent said they regularly review accounts for suspicious activity, 76 percent reported safeguards in place, and 75 percent said their employees were prepared to identify and report scams.
Younger Canadians stood out on both fronts.
According to the survey, 89 percent of Gen Z respondents felt confident spotting fraud and 67 percent sought advice on prevention at least once a year, yet 65 percent admitted to risky behaviours, the highest of any generation and above the 52 percent national average.
More than half, again 52 percent, said they had stepped in to help a family member deal with a scam.
Dhot said younger Canadians are often seen as tech savvy, and many are helping others navigate fraud risks.
Digital literacy alone, he said, "isn't enough."
Recovery is far from certain even after the fact.
CBC News reported in May that a Whitehorse woman who lost about $29,000 said TD rejected her reimbursement request because the transactions cleared through in-app verification on a known device.
"It's very distressing and very frustrating when you fall victim to a scam, but scams are different than fraud," TD spokesperson Ashleigh Murphy told the broadcaster.
