Millions of dollars are being lost, Canadians urged to be extra vigilant
It’s Fraud Prevention Month and Canadians are being warned to take extra care to protect themselves from online investment scams, with a co-ordinated campaign by organizations including the Canadian Securities Administrators.
The CSA has teamed up with the RCMP and the Canadian Anti-Fraud Centre to urge people to be aware of scams and to report them. The warning comes amid a rise in both the number and the sophistication of investment scams and fraud.
Younger Canadians appear to be at particular risk, with the CSA reporting that 2024 was the first time that it saw the scams targeting younger people trend higher. Overall, around half of respondents to the CSA’s Investor Index survey said they had seen investment scams online and 23% of Canadians say they have been approached with a possible fraudulent investment.
"Online investment fraud poses a significant risk to Canadians' financial security and well-being," said Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission. "We are witnessing a concerning trend of fraudsters exploiting digital and social platforms to target Canadians and we urge everyone to be cautious and research each investment opportunity before handing over your hard-earned money."
CAFC data reveals that Canadians lost $323 million to investment fraud in 2024, but this is likely hugely underestimated because the centre estimates that 90-95% of fraud is unreported. Spear phishing and romance fraud are part of the top frauds reported to CAFC last year, among a total of more than 4,000.
"Fraud is a crime that affects more than just your finances and the emotional tolls can linger for victims long after the fraud is uncovered. If you've been targeted, report it. It's the best way to help with the fight against fraudsters and could help someone else from becoming a victim," said Chris Lynam, Director General of the Canadian Anti-Fraud Centre.
A recent RBC poll found that the constant battle against financial crime is hard to keep up with, leading to ‘fraud fatigue’ for many Canadians.
