A sharp rise in financial fraud targeting older Canadians is renewing calls for stronger protections, including the use of “trusted contact persons” to help safeguard seniors from financial abuse and exploitation.
A recent report from the Angus Reid Institute highlights growing concern over scams targeting seniors as Canadians reported losing more than $704 million to fraud last year, following another record $645 million in losses in 2024, according to the Canadian Anti-Fraud Centre.
Authorities say the real losses are likely far higher, as only a small percentage of fraud incidents are believed to be officially reported.
The report found Canadians over the age of 60 are nearly twice as likely as younger adults aged 18 to 29 to report being victims of fraud over the past two years.
Experts say the increase is linked to Canada’s aging population, longer life expectancy and the growing sophistication of scams fueled by artificial intelligence and online deception. In some cases, financial abuse is reportedly being committed by family members or people close to the victim.
In response, the Canadian Securities Administrators is encouraging financial advisors to ask clients to designate a Trusted Contact Person, commonly known as a TCP.
A trusted contact person is someone a client authorizes advisors to contact if concerns arise regarding possible financial exploitation, cognitive decline or unusual financial activity. The role does not provide direct access to bank accounts or investments but serves as an added layer of protection.
Regulators have also authorized financial advisors to place temporary holds on suspicious transactions if they believe a client may be vulnerable due to dementia or financial abuse.
Officials recommend choosing someone mature, reliable and capable of handling sensitive discussions. They also caution against selecting someone who may financially benefit from the client’s estate in order to avoid potential conflicts of interest.
The growing crisis has also renewed attention on powers of attorney, legal arrangements that allow a trusted individual to manage finances and property if a person becomes incapable of doing so independently.
Experts are urging seniors to regularly review bank accounts, keep legal and financial documents updated, avoid pressure from relatives or acquaintances regarding money matters, and seek independent legal advice before making major financial decisions.
Advocates say awareness and early prevention remain the strongest tools in protecting older Canadians from financial exploitation as fraud schemes become increasingly sophisticated and widespread.