Fraudsters are impersonating CIRO with fake recovery offers, and CIRO urges investors to stay alert
The Canadian Investment Regulatory Organization (CIRO) has issued a warning to Canadian investors regarding the rising incidents of fraudsters impersonating CIRO.
These criminals are falsely claiming to be CIRO employees, often referencing real CIRO leaders and employees by title and name and using CIRO's logo to appear legitimate.
Recently, some victims were presented with a ‘guarantee document’ on a falsified CIRO letterhead. The fraudsters, claiming to be Andrew Williams with the email address [email protected], offered assistance in recovering funds lost in previous scams.
They requested a transfer and processing fee in exchange for their help. This type of scam is known as an investment recovery scam.
In an investment recovery scam, fraudsters target individuals who have already been victims of financial scams, using the information previously provided to deceive them once again.
These fraudsters are using increasingly sophisticated technology, making it essential for investors to independently verify any information received online, by email, or via social media.
Fraudsters in many recent cases falsely claim to be affiliated with CIRO and promise to recover lost investments. However, CIRO's mandate does not involve recovering funds lost to scams and fraud. CIRO will never contact investors to help recover money following a scam.
To verify the legitimacy of any person claiming to represent CIRO, investors can check the National Registration Search of the Canadian Securities Administrators (CSA) or consult CIRO’s Complaints & Inquiries team. A full list of dealers regulated by CIRO is available on its website.
Investors are advised not to rely on unsolicited information and to always verify the background, qualifications, and disciplinary history of financial advisors. CIRO and the CSA provide resources such as the free AdvisorReport and National Registrant Search for this purpose.
If you believe you have fallen victim to this or a similar scam, contact your bank, local police, your provincial securities commission, and the Canadian Anti-Fraud Centre. Victims of CIRO impersonation scams should also report the incident to CIRO.
