The psychology of a scam
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October is Cyber Security Awareness Month, making it the perfect time to brush up on your fraud prevention skills.
Although scams continue to evolve, fraudsters often rely on the same psychological tactics to catch people off guard. Learn how to recognize the warning signs and stay one step ahead of common fraud schemes.
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Inside a scammer's playbook . . .
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01
Trigger fear and urgency
Fraudsters want you to react before you think. Whether it's a family emergency or a suspicious banking transaction, they'll use stress or fear to pressure you into acting quickly instead of taking time to verify the situation.

Tip: Legitimate organizations rarely pressure you to make an immediate financial decision.
Watch for phrases like:
• "Immediate action required."
• "A family member is in trouble and needs money right away."
• "Act now to prevent unauthorized access to your account."
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02
Earn your trust
Scammers often pose as financial institutions, government agencies, family members, employers, or well-known brands. AI-generated content, fake profiles, and deepfake technology make these impersonation scams increasingly difficult to spot.

Tip: Verify the request through a trusted phone number, official website, or known contact before taking action.
Watch for phrases like:
• "This is the fraud department from your bank. We need to verify your account."
• "It's me. I'm in trouble and need money right away."
• "I'm calling on behalf of the Canada Revenue Agency regarding an urgent matter."
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03
Make it hard to resist
Fraudsters know that excitement can lower your guard. Whether it's an exclusive investment opportunity, a prize, a refund, or a bargain that's too good to pass up, the goal is to make the offer feel irresistible.

Tip: If an offer seems too good to be true, take a step back and do your homework. Verify the details and check independent reviews before taking action.
Watch for phrases like:
• "Guaranteed returns with no risk."
• "Congratulations! You've won a cash prize."
• "You've been selected for an exclusive investment opportunity."
• "Claim your refund before the offer expires."
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04
Collect your information
Scams usually begin with what seems like a routine request. Fraudsters may ask for passwords, verification codes, banking details, or personal information that can later be used to access your accounts or steal your identity.

Tip: Before sharing personal information, ask yourself whether the person contacting you should already have that information. If you're unsure, contact the organization directly using a trusted source.
Watch for phrases like:
• "To verify your identity, please provide your verification code."
• "Your account information needs to be updated immediately."
• "Can you confirm your Social Insurance Number?"
• "Click here to verify your account and avoid service disruption."
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05
Get you to send money
At the end of many fraud attempts, the objective is simple: get you to transfer money. Whether through an Interac® e-Transfer, cryptocurrency, or another payment method, fraudsters often try to convince you to authorize the transaction yourself.

Tip: If money needs to be moved, do it yourself through trusted channels. Before sending money, verify that the recipient is legitimate. A financial institution will never ask you to transfer funds to an employee, advisor, or another individual.
Watch for phrases like:
• "Send a deposit now to secure the opportunity."
• "Transfer the funds to this account to keep your money safe."
• "Pay with cryptocurrency to complete the transaction."
• "Follow these steps to transfer the money immediately."
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Same playbook. Different scams . . .

How to avoid social media fraud
Fraudsters are increasingly using social media to impersonate trusted individuals and organizations. Learn how to recognize fake profiles, suspicious messages, and other warning signs before sharing information or clicking a link. Avoid the traps

Think before you e-Transfer
An Interac e-Transfer may feel like any other payment, but once the funds are accepted, they're often gone for good. Learn how a quick verification step can help you avoid common scams.

Protect yourself from identity theft
The sooner you recognize the signs of identity theft, the better your chances of limiting the damage. Learn what to watch for, what to do if your personal information is compromised, and how to better protect yourself from future fraud attempts.

The illusion of a quick buck
Cryptocurrency scams can take many forms, but they often rely on the same tactics: building trust, creating urgency, and promising easy gains. Learn how these schemes work and what warning signs to watch for before investing.
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To find out more about the movement and learn other ways to outsmart scammers, visit the Canadian Anti-Scam Coalition’s website; https://www.standagainstscams.ca/

Food For Thought❗

Dean

The Mayo Clinic has a good article on the subject . . .

Link ➡️ https://www.mayoclinic.org/dis.....c-20354578

Now where did I put my glasses⁉️

Dean

AltaRed said
Not wanting to stray far off-topic, but to address Norman1's point, I have negligible cash balances in bank accounts, and negligible cash in investment accounts because I sweep all the monthly distributions out to chequing to pay bills. So an Executor could face the same issue, i.e. inability to source funds from a brokerage account to go to the Estate bank account to fund estate expenses.

However, I think a brokerage MIGHT consider an executor's request to sell units of a brokerage ISA to withdraw and fund estate expenses, if for no other reason than brokerage ISAs are in fact deposit accounts insured by CDIC, but use the mutual fund system as the means to deposit or withdraw funds. It might need to be facilitated by a bank branch manager making the request to the brokerage do so, assuming of course the brokerage is simply another division of the same corporate family. That remains to be seen.

The above issue is distinct and separate from an Executor's ability to request a brokerage to 'go to cash' to preserve estate capital as long as the capital remains in the brokerage account. Some 11 years ago when my mother passed, I (as Executor) was able to get RBC Direct Investing through a Letter of Direction to sell her RBC equity mutual funds and place the proceeds in RBC DI HISA RBF2010 within the brokerage account to preserve the estate's capital.

Regardless, I think it is incumbent on us to increasingly simplify our financial affairs as we age to lessen the workload of either a POA or an Executor to manage our affairs. I cannot quite imagine being a POA to an individual with 10-15 separate accounts scattered everywhere and having to undertake significant work to consolidate them to something manageable. I wouldn't impose that hardship on my POA who really would be doing this out of the goodness of his heart while trying to juggle his own life. If one has complicated affairs, it would be best to get a Trust company to be POA (and even Executor).  

Until one is in the process of relocating below the grass line, one should also consider the need or want to deal with possible immediate needs or wants like Auto, Appliance, Furnace, Roof catastrophic failure, family emergencies or anything else not covered by insurance

However, I think a brokerage MIGHT consider an executor's request to sell units of a brokerage ISA to withdraw and fund estate expenses, if for no other reason than brokerage ISAs are in fact deposit accounts insured by CDIC, but use the mutual fund system as the means to deposit or withdraw funds. It might need to be facilitated by a bank branch manager making the request to the brokerage do so, assuming of course the brokerage is simply another division of the same corporate family. That remains to be seen.

The above issue is distinct and separate from an Executor's ability to request a brokerage to 'go to cash' to preserve estate capital as long as the capital remains in the brokerage account. Some 11 years ago when my mother passed, I (as Executor) was able to get RBC Direct Investing through a Letter of Direction to sell her RBC equity mutual funds and place the proceeds in RBC DI HISA RBF2010 within the brokerage account to preserve the estate's capital.

Regardless, I think it is incumbent on us to increasingly simplify our financial affairs as we age to lessen the workload of either a POA or an Executor to manage our affairs. I cannot quite imagine being a POA to an individual with 10-15 separate accounts scattered everywhere and having to undertake significant work to consolidate them to something manageable. I wouldn't impose that hardship on my POA who really would be doing this out of the goodness of his heart while trying to juggle his own life. If one has complicated affairs, it would be best to get a Trust company to be POA (and even Executor).

AltaRed said
(VEQT) and only one ETF (VCNS)  

Thanks for your informative insights.

Coincidentally VEQT is on my watchlist and have considered realigning my ETF portfolio, so your your post has offered things to consider.

Stephen

Nehpets said

Agreed with your strategies, which essentially are consistent with mine, but would like to understand your reason for minimal holdings of ETF's.

Thanks,

Stephen  

The reality today (since about 2018) is one only really needs one ETF in each of their investment accounts if one chooses one of the Asset Allocation ETFs as described here https://www.finiki.org/wiki/As.....cation_ETF obviously assuming one agrees with the global asset slices, or any one of the model portfolios described in https://www.finiki.org/wiki/Si.....portfolios

The point being if one picks broad based index ETFs any more than a few creates overlap. There have been many, many discussions on forums like Financial Wisdom Forum and Canadian Money Forum about various combinations. A very popular thread at FWF is 'VBAL Everywhere' which is a 60/40 balanced solution (or XBAL or ZBAL if one prefers).

Another solution is to separate equity and fixed income because some folk do not like bond ETFs and thus they might use VEQT or ZEQT or XEQT and then a GIC ladder for fixed. Others may want to have their own Canadian equity component and so go with XIC (Canada), XAW (rest of world) and then a fixed income ladder of some sort.

The combinations are endless but the point is that there is minimal decision making that needs to be with holdings the simpler it is. That negates much of the nonsense that exists in literature and mass media about stock picking.

I assist my ex-spouse with her portfolio and she had 6 ETFs only, and 6 only because of some legacy ETFs from 15+ years ago and it would cause too much cap gains tax to consolidate. She has only 1 ETF in her TFSA (VEQT) and only one ETF (VCNS) in her RRIF.

There is a complication with investments. Before probate is granted, a bank or brokerage will issue drafts for cash balance in the deceased's account upon presentation of the bill for expenses like funeral costs.

But, the bank or brokerage won't accept an order to sell investments, like mutual funds or stocks, to raise cash for expenses, until the executor has the probate order to confirm legal authority to act.

That's what happen with one estate I helped with. Deceased had plenty of investments that could cover the expenses. But, not that much in savings or chequing accounts.

AltaRed said
keep investment accounts simple with minimal holdings of ETFs.  

Agreed with your strategies, which essentially are consistent with mine, but would like to understand your reason for minimal holdings of ETF's.

Thanks,

Stephen

1. Absolutely went to auto payment as much as possible years ago. Only a few recurring things remain for 'manual initiation' and that is property taxes, income tax owing Apr 30, and my auto insurance/registration which needs signatures anyway. Even my tax instalments to CRA are set on auto-pay. I have Enduring POA for a family member. I took on that responsibility on condition he put everything he could on auto-payment.

2. Not much anyone can do about it if I fall into that trap, other than my POA recognizing my decline and persuading me to hand over the reins.

3. Similar to 2 above. I do have 'trusted contacts' set up for my brokerage accounts, all of which however are self-directed. I am however not convinced there is sufficient brokerage oversight of such accounts vs advisor managed accounts. Again, it would be best for me to soon give my POA trading rights so that he could see/monitor my actions in my brokerage accounts.

4. I am not a believer in adding an offspring as a JTWROS owner of any of my accounts for all the reasons stated. I view Enduring POA as the proper way to do this.

5. I have had updated Wills, and enduring POA, in place for decades. This includes digital Wills and the proper lists of assets and where held, access to my Password Manager, and guidance via IPS (Investment Policy Statement) for my investment accounts.

Not explicitly stated but similarly important as one ages. Simplicity is key. Avoid proliferation of accounts (bank and investment) and keep investment accounts simple with minimal holdings of ETFs.

➡️ https://www.ctvnews.ca/health/.....e-decline/

'Food For Thought' for us older folks (and our families).

Dean

Another reason why I insist on paper documentation.

savemoresaveoften said
So they claim it will now be paid in December instead of August ?  

Yes, exactly. The situation is even worse because under these new terms I got to keep the funds through October and in fact have to keep funds until the bonus is paid to move out principal and bonus together. Otherwise I would have to pay withdrawal fee for the bonus, which is substantial percentage.

On Redflagdeals.com, there is a thread posted Nov 17th, 2025 1:34 pm

Forums > Expired Offers > Expired Hot Deals >
Scotiabank Investment Account Incentive up to $3750

https://forums.redflagdeals.co.....0-2788614/

I posted an entry there Dec 2025 mentioning two different Scotia offer sightings but I haven't track the details of the other one.

I think it's best if you managed to connect with someone signed on to the same offer to compare notes.