New Canadian families are susceptible to financial fraud, Interac says

The survey reveals that 70% of newcomers feel more vulnerable to scams than the general population, with 53% reporting personal or immediate family experiences with fraud. The apprehension extends to future victimisation, as 55% express significant concern about becoming targets. 

As Canada witnesses a surge in immigrant numbers, scammers are exploiting the unfamiliar financial terrain faced by newcomers. The prevalent scams include fake job postings (40%), phishing attempts (37%), and scammers posing as representatives of official government institutions (34%). 

Official representatives from Interac emphasised the commonality of financial scams targeting newcomers and called for collective efforts to enhance their financial literacy. They also noted the importance of building trust as newcomers adapt to new financial practices such as using Interac e-Transfer or Interac Debit. 

The survey underscored the impact of high scam rates on newcomers' financial confidence. Only 22% strongly agree that they would know what to do if victimised, and 56% admit feeling less financially confident after being targeted, compared to 36% of the general respondents.

The importance of financial literacy programmes 

Recognising the priority of financial education, 73% of newcomers express a desire to learn more about protecting themselves from fraud, and 83% highlight the value of tools for managing spending. In response, Interac and Conscious Economics have launched a free online learning programme named 'Mindfulness & Money for Newcomers and International Students,' which focuses on financial literacy and fraud prevention. 

The programme, available in multiple languages, consists of three modules and addresses the needs of both newcomers and international students. It's also worth noting that the programme will be integrated into the orientation package at Toronto Metropolitan University (TMU). 

Interac officials highlighted the course's role in establishing a supportive community for newcomers and improving financial and digital literacy. 

The survey indicates that more than six in ten newcomers (63%) prefer spending their own money instead of borrowing, with strategies such as using Interac Debit (43%), following a budget (55%), and having savings or investment goals (60%) ranking among the top choices to improve overall financial confidence. 

In the company press release, representatives from Mindfulness & Money talked about the importance of supporting newcomers in navigating the financial system and preventing fraud.