Cash feels safe—it’s familiar, simple, and doesn’t rely on technology. But according to a study by Payments Canada, Canadians are nearly three times more likely to encounter payment fraud when using cash compared to credit cards. That’s a surprising fact, and it’s worth understanding why.
 
Unlike digital payments, cash is hard to trace. Once it’s handed over, it’s gone—and if the person you gave it to turns out to be a fraudster, recovering it is nearly impossible. This makes cash fraud especially risky, particularly in face-to-face situations. If a scammer panics or feels exposed, things could escalate quickly. 

Common Cash-Related Scams

One of the most frequent scams is the construction scam. A scammer poses as a contractor offering home repairs, asks for a large cash deposit, and then disappears—or does poor work and vanishes before finishing. 

Other scams include: 

• Advance Fee Scams: You’re asked to pay upfront for a prize, loan, or job that never materializes. 

• Romance Scams: A scammer builds trust online and then asks for cash to deal with a fake emergency. 

• Impersonation Scams: Someone pretends to be a family member or official and requests cash urgently. 

• Counterfeit Bills: You receive fake currency during a transaction, often in informal settings. 

How to Stay Safe

• Avoid Cash for Big Transactions: Use traceable methods like debit, credit, or e-transfer. 

• Verify Before You Pay: Confirm the identity and legitimacy of anyone asking for cash. 

• Don’t Rush: Scammers often create urgency. Take a moment to think. 

How to Report Fraud

If you suspect fraud: 

• Contact your financial institution immediately. 

• Report to local police and file a report. 

• Reach out to the Canadian Anti-Fraud Centre. 

• Keep any evidence—receipts, messages, or photos—that may help investigators. 

Cash can still be useful—but knowing the risks helps you use it wisely and safely.