Let's break it down.
#1 Investment & Loan Scams – The Too-Good-To-Be-True Trap
The Scam:
You come across an investment opportunity promising sky-high returns with little to no risk. A "firm" asks you to open a bank account, transfer funds, or download software for "portfolio management." Once you send your money, the firm vanishes, leaving you empty-handed.
What to Know:
- Neo does not offer cryptocurrency investments or guarantee returns on any financial product.
- No legitimate investment firm will require you to open a specific bank account just to participate.
- Never download screen-sharing software at someone's request.
- Verify investment firms through official financial regulatory bodies like the Canadian Securities Administrators (CSA).
Key Tip: If an investment sounds too good to be true, it probably is. Always research before you invest.
#2 Buyer & Seller Scams – The Shady Marketplace Tactic
The Scam:
You find an incredible deal on a product—whether it’s electronics, concert tickets, or a rare collectible. The seller insists on an Interac e-Transfer® upfront. Once you send the money, they disappear, leaving you with nothing but regret.
What to Know:
Scammers often post deals that seem too good to be true to lure in buyers. Always ask for proof of the product’s legitimacy, such as photos, receipts, or verification codes for digital items like tickets. Use trusted platforms with buyer protection, like those that accept secure card payments. Neo’s credit and debit card users can enjoy added security when making purchases with fraud monitoring in place.
Key Tip: Avoid sending money via e-transfer unless you absolutely trust the recipient. Meet in person whenever possible.
#3 Account Takeovers – When Scammers Steal Your Access
The Scam:
You get a call or message claiming to be from your bank or service provider, warning about "suspicious activity" on your account. The scammer asks for a one-time password (OTP) sent to your phone, claiming they need it to secure your account. Once they have the code, they take control and drain your funds.
What to Know:
- Neo and other legitimate financial service provider will never ask you for your OTP or login credentials.
- OTPs and 3DS codes are security tools meant only for you—never share them.
- If you get a suspicious verification request, call your financial service provider directly using the number on their official website or app.
Key Tip: If someone asks for your OTP, assume it's a scam. Hang up and verify with your bank or financial service provider. You can also freeze your card in the Neo app, if you are concerned (you can unfreeze it once you ensure it is safe).
#4 Job Scams – Fake Employers, Real Losses
The Scam:
A "recruiter" reaches out with a job offer, but before you can get paid, you must open a specific bank account or link your existing account to an online deposit platform. Once linked, scammers drain your funds, leaving you unemployed and out of pocket.
What to Know:
- Neo is not required for onboarding at platforms like Uber, Instacart, or Skip the Dishes.
- No legitimate employer will require you to open a specific bank account just to get paid.
- Research the company independently—visit their official website and check for reviews before providing personal details.
Key Tip: Google the company and job posting before sharing personal information. Trust your instincts!
#5 Social Engineering – The Art of Manipulation
The Scam:
A fraudster poses as your bank, service provider, or even a government agency, claiming your account is at risk. They use fear tactics to convince you to reveal login credentials, banking details, or one-time passwords.
What to Know:
- Neo will never ask for your password or One-time passcode (OTP) via phone, email, or text.
- Fraudsters create urgency to pressure you into acting quickly—take a step back and verify.
- If you're unsure, always contact Neo through the official app or the number on your card.
Key Tip: Pause before responding—if you weren't expecting the call or message, verify independently.
#6 Tax Scams – Fraudsters Posing as the CRA
The Scam:
You receive a call, email, or text claiming to be from the Canada Revenue Agency (CRA), stating you owe back taxes and must pay immediately. The scammer may threaten legal action, demand payment via gift cards or cryptocurrency, or request sensitive personal information.
What to Know:
- The CRA never demands immediate payment or threatens arrest over unpaid taxes.
- The CRA will not ask for payment via gift cards, prepaid debit cards, or cryptocurrency.
- Verify any CRA communication by logging into your official CRA account or calling them directly.
Key Tip: If you receive a suspicious CRA call, text, or email, hang up and verify independently.
If you think you have been targeted by a scam, here's what you should do
Report It
If you believe you've been a victim of fraud, act fast— freeze your card immediately. Contact your financial service provider immediately to report any unauthorized transactions or suspicious activity. You should also report the fraud to your local police department and file a police report. Contact the Canadian Anti-Fraud Centre (CAFC) to help authorities track and prevent scams across Canada.
Learn More & Help Others
The CAFC maintains an updated list of common scams circulating in Canada. Staying informed is one of the best ways to protect yourself and others. Explore Canadian Anti-Fraud Centre – Latest Scams to learn more.
Talk About It
Financial scams can happen to anyone, and scammers rely on shame and secrecy to continue their schemes. If you've experienced a scam, consider sharing your story with friends, family, or online communities to help others recognize and avoid fraud.
At Neo, we're committed to financial security and scam awareness. If something feels off, trust your instincts and verify with us first. We can help secure your account and take necessary steps to protect your finances.
Need help? Reach out through the Neo app or visit our support page: Neo's Scam Prevention Guide.
Stay Smart, Stay Safe
Scammers evolve, but so can you. Staying informed and practicing vigilance can protect you from fraud. Remember, if something feels off, verify directly with your financial institution—Neo is always here to help.
