Stay a step ahead of fraud this holiday season

Fraud doesn’t take holidays. As Canadians shop, donate, and celebrate online, fraudsters are using new tools — like artificial intelligence — to make old scams more convincing than ever. These threats can appear any time of year, but they often increase when people are shopping, sharing, or gifting more frequently. Staying aware of how these new takes on old tricks work is one of the best ways you can keep yourself and your loved ones protected during the holidays and beyond.

1. AI-generated phishing and smishing

Text and email scams have been around for years, but they’re getting harder to spot. AI tools now help criminals write convincing messages that mimic real companies, even copying their tone and formatting. During the holiday rush, you might get a text about a “missed delivery” or a “suspicious account charge.”

These messages are designed to make you act fast — before you have time to think. Clicking a link or replying can give fraudsters access to your information or the ability to install malware on your device.

For anyone who prefers to take their time before clicking or replying, that pause is your best protection. Trust your instincts if something doesn’t look right.

Best practices to avoid phishing and smishing:
• Never click links or attachments in unexpected texts or emails.
• If the message looks urgent, go directly to the company’s website or call them through an official number instead.
• Use multi-factor authentication on your most important accounts — it adds a crucial extra layer of security.

2. Gift card scams

Gift cards remain a top choice for scammers because they’re hard to trace and easy to spend. Some criminals tamper with cards on store racks, copying the numbers and PINs before resealing the packaging and leaving them there to be purchased by an unsuspecting victim. Once the cards are purchased and activated, they drain the balance before the recipient even unwraps their gift.

This type of scam isn’t limited to December — gift cards are used year-round for birthdays, thank-you gifts, and more. A few careful steps can make all the difference.

How to shop safely:
• Inspect packaging carefully before purchase. If anything looks off, ask the cashier to open it.
• Don’t buy gift cards displayed near checkouts or in high-traffic areas — choose ones kept behind the counter if possible.

3. QR code fraud

QR codes have become a popular and convenient way to donate or pay, but not all of them are legitimate. Fraudsters can print fake codes that lead to phishing sites or payment portals designed to steal your data. These scams often appear in places where people expect to see donation requests — such as posters or social posts.

Because QR codes are easy to overlook, take a moment to double-check before scanning — especially when you’re in a hurry or using a new device.

Protect yourself:
• Avoid scanning random QR codes from emails or public posters.
• Verify links before entering any payment details.
• When donating, always go directly to the charity’s website or use verified official channels.

4. Title fraud

The most serious form of property fraud happens when someone uses your identity to mortgage or even sell your home without your knowledge. With digital transactions now more common than ever, fraudsters are using fake or stolen IDs to pass identity checks — especially when professionals are busy during the holiday season.

These risks don’t end when the holidays do — ongoing vigilance helps protect your property at every stage of ownership.

How to stay vigilant:
• Keep all documents with personal or property information secure, and ensure you shred or properly discard them when you’re done.
• Work only with trusted legal professionals and confirm any suspicious or unusual requests directly with them.
• Protect your home with title insurance. It safeguards against title fraud as well as other common risks, offering coverage that remains in effect for as long as you own your property.

Knowledge is your best protection

Fraudsters rely on distraction and exploiting your trust. By learning how scams evolve, you can recognize the red flags before it’s too late.
Taking a few extra moments to pause, verify, or ask questions — especially if something feels unusual — can help you stay a step ahead all year long.

FCT continues to work with legal professionals, lenders, and homeowners across Canada to help prevent fraud. From comprehensive title insurance to advanced digital identity verification solutions, we continually enhance our safeguards to protect both your property and personal information — allowing you to move forward with confidence and focus on what matters most this holiday season and throughout the year.

Insurance by FCT Insurance Company Ltd. Services by First Canadian Title Company Limited. The services company does not provide insurance products. This material is intended to provide general information only. For specific coverage and exclusions, refer to the applicable policy. Copies are available upon request. Some products/services may vary by province. Prices and products/services offered are subject to change without notice.

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