Canadians are being warned about a scam involving text messages that claim recipients are eligible for a so-called “milk settlement,” even though no such class action exists.
The messages direct users to click a link and submit personal information, something experts say is part of a broader trend of fraudsters exploiting legitimate cases to make scams appear more credible.
Don Stoneman from Ontario, said the message initially caught his attention.
“I looked at it and I thought it was kind of interesting. I had never heard of any class action regarding milk products,” he told CTV News.
Stoneman said he called the number included in the message but reached a generic voicemail.
“I realized that it was in Nova Scotia,” he said, which raised his suspicions further.
Chris Hermann, also from Ontario, said the website linked in the text appeared convincing at first glance.
“It used the same icons, the same graphics as the federal government,” he told CTV News.
Hermann said his past experience receiving legitimate class action payouts made the message seem plausible.
“I’ve been pleasantly surprised by class action suit payouts that have just literally been a text or an email,” he said. “That is why I didn’t immediately send it to spam or block it.”
But Hermann’s concern grew when the site asked for sensitive financial information.
“Then they were asking for my credit card information… and I went – ‘no, that’s not it. Not good.’”
Cybersecurity expert Terry Cutler said scammers are using personal data to send mass messages designed to appear legitimate.
“What they’re doing, is getting access to emails and phone numbers and blasting out messages saying, ‘You’re eligible for payment — click this link,’” Cutler told CTV News.
“When people click, they often end up on a fake-looking website.”
He said fraudsters are increasingly building on well-known cases, such as the bread price-fixing settlement, to make scams more believable and sometimes even inventing claims that don’t exist.
Cutler said there are simple steps people can take to protect themselves.
“If it asks you to click a link, don’t do that,” he said. “Google the name of the lawsuit and actually go to the authorized website.”
According to the Canadian Anti-Fraud Centre, cyber scams, including fake settlement messages are part of a larger problem.
Canadians have reported losing more than $2.4 billion to fraud since 2022, much of it online. Officials say that likely represents only a fraction of the total, as only an estimated five to 10 per cent of incidents are reported.
Cutler said the shift to online crime has made it easier for fraudsters to operate.
“Cyber criminals have now gone online and (are) doing their cyber criminal work because it’s so much easier to hide behind a computer, and it’s easier to hide their tracks,” he said.
“Law enforcement can’t necessarily get to them. That’s why we’re seeing much more scams happening right now.”
Cutler added that recovering lost money is unlikely.
“There’s a very, very low chance you can get money back. Prevention is key.”
Linda Visser, a partner at Siskinds Law Firm, said legitimate settlements follow a clear and structured process, meaning recipients are typically aware they are eligible well before any payment is issued.
“You would fill out a claim form online and that’s pretty basic information,” Visser told CTV News.
“You get a confirmation email back from the claims administrator indicating that they’ve received your claim form, and usually before the payment goes out, the claims administrator will send an email advising that payments are going to be issued in the next 2 to 3 days.”
She added that legitimate claims administrators do not request banking or credit card information through unsolicited messages.
Hermann said reporting scams can feel frustrating.
“There is a federal organization or link to the federal government where you can report things, but there’s literally no feedback and no personal connection,” he said.
Hermann now takes additional precautions when contacted unexpectedly.
“If it’s the bank, I’ll say I’m not talking to you and I’ll just phone the bank,” he said. “If there’s an app available on my account, I’ll ask them to get in touch with me via the app.”
Neither Hermann nor Stoneman lost money, but both say the experience underscores the importance of staying vigilant.