Investment scams happen when people try and trick you into investing money. These scammers try to get you to invest in fraudulent schemes by promising you’ll “get rich quick” or that you will double your money but beware as your money will disappear. If it sounds too good to be true it usually is.
The scammer will provide you with false or misleading information to get you to make an investment. Some new scams focus on digital currencies including cryptocurrencies where the fraudster will use social media, dating apps or websites with messages of urgency and promising high returns. Scams will also come in the form as a pyramid scheme or use fake celebrity endorsements.
If you have been victimized, you may also be targeted by a scammer through a Funds Recovered Scam. Scammers will claim to be a legitimate company offering to help you recover the funds you lost for a fee. They may even claim to be working with the local police service. If they promise to recover the money, it’s a scam, there is never a guarantee.
How to recognize an investment scam
- A claim you can make a lot of money with little or no risk.
- Someone claims they have insider information.
- You feel pressured into making a quick decision.
- The seller isn’t registered with the provincial securities regulator.
Protect yourself
- If they are using high pressure tactics such as threatening you with deportation or an arrest, it is a scam.
- Verify the email is coming from a legitimate source.
- Check registration of individuals or firms, are they registered with Alberta Securities Commission?
- Be cautious of unrealistic returns.
- Only invest with certified investors who work for reputable companies.
- Do not give them your money or personal information until you have researched the company.
- Educate yourself through the Alberta Securities Commission Check First Website - CheckFirst | Investor Education for Albertans
Report Fraud
If you have been a victim, call the Edmonton Police Service immediately at 780-423-4567 or #377 from your mobile phone. If you are a victim of fraud do not be afraid to come forward. You are not alone. We are here to help you.
If you did send money or share financial information, report it to the financial institution used e.g., your bank, Western Union, MoneyGram, Equifax, and TransUnion.
Gather all information pertaining to the situation, including the scammer’s profile name, how you made contact, social media screenshots, emails, etc.
File a report with the Canadian Anti-Fraud Centre – 1-888-495-8501 or www.antifraudcentre.ca.
Be proactive. Tell family, friends, coworkers, and neighbours about your experience to warn them of online scams. Check out ASC Checkfirst for more information and tips.