Even registered names can be spoofed, CIRO warns investors to confirm directly with institutions
The Canadian Investment Regulatory Organization (CIRO) is warning investors about fraudulent websites that impersonate legitimate financial institutions and their representatives to promote fake Guaranteed Investment Certificate (GIC) offers.
These scams advertise high returns but do not provide actual investments or financial advice. Individuals who engage with these websites or people risk serious financial loss.
According to the CIRO guidance, investors should always verify the legitimacy of any financial offer through the official website of the financial institution.
In Canada, they are also advised to use the National Registration Search tool provided by the Canadian Securities Administrators (CSA) to check whether individuals and firms are qualified to offer financial services.
However, since scammers may impersonate real advisors who are properly registered, the guidance also stresses the importance of contacting the financial institution directly to confirm the person’s identity.
In one incident, as reported by CTV News, an 82-year-old Oakville man lost $750,000 after he believed he was investing in a GIC through PC Financial.
He later discovered the website was fraudulent and the representatives were impersonating actual PC Financial employees.
Similarly, a Huntsville couple lost approximately $680,000 in a scam where fraudsters posed as representatives from Alterna Bank.
According to Global News, the Ontario Provincial Police charged two individuals in connection with this case.
Another case involved a Toronto resident who was defrauded of over $200,000 by individuals impersonating representatives from Schroders Management Inc.
The suspects allegedly used online advertisements to lure victims to fraudulent investment comparison sites.
Last March, the CSA has also warned the public about fraudulent emails using CSA branding and names of CSA executives, promising to recover investor funds lost due to fraudulent activities.
These communications are not legitimate, and the CSA urges individuals to verify any suspicious messages directly with their local securities regulator.
