What are they?

Fraudsters entice victims to ‘invest’ their money in fake financial products and services. Typically fraudsters will promise unrealistic prices and profits with an emphasis on time-limited offers to pressure victims into sending their money over as soon as possible.

How they work:

  1. You receive a call, or repeated calls, from someone offering unsolicited advice on investments. 
  2. The person claims that you can earn a big return on an investment that is risk-free.
  3. The victim believes they’re getting a great deal and sends their money to the fraudster.

Signs of an investment scam

  • You’re required to pay a ‘finder’s fee’ in advance 
  • You’re guaranteed a high return on investment 
  • The individual claims that it’s a no-risk investment 
  • You’re pressured to send money via wire transfer 
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How to protect yourself

  • Feel pressured to invest your money, especially when given investment advice from someone you’re unfamiliar with. If you’re unsure of an investment opportunity, seek financial advice from a trusted professional.

  • Find information online about the company and the investment. Also, check to see if the seller is registered to sell investments. 
  • Always protect your personal and banking information, such as your Social Insurance Number, credit card information, and passwords.
  • Be suspicious of investment opportunities that promise a high return with little to no risk.
  • Carefully read and understand the terms and conditions before entering any agreement or making a purchase.

Other types of scams