Canadian authorities warn of surge in fake ‘milk settlement’ text scam exploiting class-action credibility

Canadian authorities are warning of a rapidly spreading text-message scam falsely promising payouts from a non-existent “milk settlement,” as fraudsters exploit the credibility of legitimate class actions to trick recipients into sharing sensitive personal and financial information.

According to CTV News website, the messages prompt users to click a link and share personal details, a tactic experts say scammers use to mimic legitimate claims. Using compromised personal data, scammers are sending mass messages crafted to look legitimate, according to cybersecurity expert Terry Cutler.

Cutler said, “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.”


“When people click, they often end up on a fake-looking website.”

Cybersecurity expert Terry Cutler said scammers use well-known cases to make fake claims seem real, urging people to avoid suspicious links and verify sources.

“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 CTV News website, the Canadian Anti-Fraud Centre says fake settlement messages are among a growing wave of cyber scams.

Since 2022, Canadians have reported losses exceeding $2.4 billion to fraud, mostly online, though officials say the true figure is likely far higher as only an estimated 5 to 10 per cent of cases are reported.

Terry Cutler said the move toward online crime has made it easier for scammers 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.”

According to Linda Visser, legitimate settlements follow a structured process in which eligible recipients are notified well in advance of any payout.

“You would fill out a claim form online and that’s pretty basic information,” Visser said according to CTV News.