A growing fraud scheme reported across Canada is using stolen banking credentials and social engineering to trick victims into unknowingly approving tuition payments on behalf of strangers. According to , a Vancouver resident lost more than $37,000 after fraudsters impersonated her bank and convinced her to approve transactions that appeared legitimate. The funds were ultimately used to pay tuition fees at a post-secondary institution.
While the scam primarily targets personal banking accounts, it affects the broader post-secondary community, including students, parents, guardians, faculty, and staff. Fraudsters are exploiting trust in financial institutions and creating a false sense of urgency to pressure victims into approving transactions themselves. In several cases, banks refused to refund the money because the customer approved the charges during the call, even though they were tricked.
How the scam works:
- You get a call that shows your bank’s real phone number on caller ID.
- The caller says there is fraud on your account and asks you to open your banking app, or read back a code sent by text, to “stop” the charges.
- You are actually approving payments to a school you have no connection to.
- The criminals have already collected money from international students by offering them “discounted” tuition. Your card is used to pay that tuition.
Warning Signs:
- Requests to use your personal credit card or bank account to assist another person's tuition payment.
- An unexpected call claiming to be from your bank's fraud department.
- Pressure to act immediately to "stop" suspicious transactions.
- Requests to approve banking app notifications while on the phone.
- Requests to provide one-time passcodes or verification codes received by text or email.
- A caller who insists you remain on the line while reviewing your banking account.
- Offers to pay tuition on someone's behalf at a discount or through an unofficial arrangement.
Remember, Caller ID can be spoofed and should NOT be trusted as proof of identity.
If you think you've been targeted:
- Contact your bank or credit card provider immediately.
- Request that your cards be blocked or replaced if necessary.
- Ask your financial institution to investigate the transactions and initiate any available dispute or chargeback process.
- Report the incident to your local police service.
- File a report with the Canadian Anti-Fraud Centre at .
- Keep records of all communications, case numbers, statements, and correspondence.
Criminals no longer rely solely on stealing passwords. Increasingly, they manipulate victims into approving transactions themselves. Taking a moment to verify who you are speaking with and independently contacting your bank can prevent significant financial loss.
Stay vigilant and help raise awareness by sharing this information with family members, especially students and parents who may be involved in managing tuition payments.
Questions or Concerns?
Reach out to 91ɫ's Information Security Team by emailing infosec@yorku.ca.