Key Takeaways
Scams tend to follow a predictable arc, from the first contact through to the aftermath.
Recognizing which stage you’re in can help you stop a scam before money or information changes hands.
Each stage has its own warning signs. Knowing them can help you spot them faster.
Acting quickly after a scam can limit the damage, and reporting it helps other people too.
Stage 1: Circumstance
Every scam begins in the context of ordinary life, where scammers exploit common life events to cast a wide net. Circumstances like a recent move, starting a new job, health concerns or caring for an aging parent can make unexpected messages feel more plausible. Scammers capitalize on these moments by mass-sending targeted messages, hoping to catch individuals off guard. They don’t know your exact circumstances – they’re simply testing who will take the bait.
How to protect yourself
When we’re busy, distracted or outside our usual routine, it’s easier to fall for a scam, especially if the messaging seems reasonable. That’s why setting up protections before these moments is most helpful – signing up for transaction alerts, enabling two-factor authentication (automatically activated in Online Banking and the Mobile App for RBC clients) and saving your bank’s phone number in your contacts all make the next stages harder for a scammer.
Stage 2: The Fall
This stage marks the first interaction between the scammer and the target. Scammers often use sophisticated tactics to appear legitimate, such as spoofing official contact information or mimicking trusted organizations. The initial message or communication typically presents a plausible reason for outreach, such as a security alert, account issue or urgent request. The goal is to establish credibility quickly, create a sense of urgency and maintain engagement to urge the victim to act. Common methods include phishing emails, fraudulent messages or impersonation of authoritative figures.
How to protect yourself
Be alert for unsolicited contact, whether via email, message or call, that you did not initiate. Scammers often create a false sense of urgency, demanding immediate action with threats of account closure, legal consequences or financial loss. A request for something confidential, such as a one-time code, a password, PIN or remote access to your device, is another red flag.
Stage 3: Blindness
This is the stage that involves the victim taking direct action, such as transferring funds or sharing sensitive information, under the scammer’s guidance. Scammers anticipate doubts and pre-emptively address concerns to maintain control. Common tactics include claiming the transfer is part of a confidential investigation, instructing the victim to keep the transaction a secret or promising that moving funds or sharing details will safeguard them.
How to protect yourself
Any request for secrecy, coaching on what to tell your bank, suggestion that moving your money will keep it safe or pressure to act immediately without verification. If you encounter these tactics, end the interaction immediately and contact the organization directly using a trusted phone number or official channel.
Stage 4: Trouble in Paradise
At this stage, inconsistencies emerge: promised outcomes fail to materialize, unexpected fees surface or explanations shift to explain away a delay. Victims often begin to feel uneasy and invested at the same time. Scammers respond with renewed assurances or added pressure to maintain control.
How to protect yourself
Common red flags include a request for additional payments (i.e., a fee to release money that’s already yours), shifting narratives or excuses from the scammer when questioned and repeated deadline extensions without resolution. At this stage, send nothing further, verify information independently through the organization’s official number or website and talk things through with someone you trust.
Stage 5: Crash
Contact abruptly ends at this stage – the number stops connecting, messages go unanswered or the scammer simply vanishes. Often the realization that something has gone wrong comes through a routine check – a balance that looks off, a conversation with a family member or a call to the real institution.
How to protect yourself
If anything feels off, it’s wise to contact your financial institution as soon as possible. They can lock your cards and monitor your accounts.
Stage 6: The Aftermath
The last stage is when you start to take steps toward recovery, including reporting what happened, protecting the accounts and information that may still be exposed and watching for future contact. Money that’s been transferred can be difficult to recover, but the steps below can help limit further damage and give investigators something to work with. Reporting also helps protect others. With only 5 to 10 per cent of frauds reported, each report helps authorities resolve cases.
Fallen victim to a scam? Here’s what to do next
Report the incident. Notify your bank and law enforcement.
Scan your devices. If you clicked on a link or attachment, it’s a good idea to run an antivirus scan to check for malicious software.
Change your passwords. Update passwords for any accounts that might be compromised.
Lock down your credit. If you shared personal information with the scammer, it’s a good idea to place a fraud alert on your credit report.
Lock or cancel your credit card. If you inadvertently provided the scammer with your credit or debit card information, immediately lock and then cancel your card.
Alert others. Warn friends and family so they don’t fall for the same scam.
Our full Digital Safety and Scams guide includes a detailed list of reporting contacts in Canada, the United States and the United Kingdom, along with key credit bureau and banking information.
Tip: Fraud victims are contacted again more often than people expect from someone like an investigator, lawyer or specialist firm, offering to recover lost funds. Remember that no legitimate service asks for payment upfront to return money you’ve already lost.
A common pattern behind many different scams
While the details of a scam can take many different forms, the sequence tends to stay consistent: an opening that fits your circumstance, contact that seems legitimate, pressure to keep quiet and doubt that gets talked away. Recognizing the stage you’re in is often enough to stop the next one.
Spotting scams is becoming increasingly hard to do. The best thing is to stay aware of current scams and understand the ways you can protect yourself.
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
