CSA, IIROC cite increasing concerns over sites that spoof registered firms and regulators
Fraudulent websites soliciting investments have stepped up their efforts to lure investors with unrealistic promises of lofty returns.
In a new statement, the Canadian Securities Administrators (CSA) issued a public warning about bogus websites promoting investments in foreign exchange, binary options, and crypto assets.
“In particular, fraudsters continue to capitalize on market interest in crypto assets to lure investors into scams, using high-pressure sales tactics and promises of high returns with little or no risk,” the statement said.
The regulator cited reports of investors being directed to a crypto asset trading platform where they could convert their funds into crypto assets. From there, they’re enticed to move the crypto assets to a fraudulent, third-party investment website to fund an “account,” with some being tricked into downloading software that enables remote access to their computer.
The statement also warned of rising concerns, from both the CSA and the Investment Industry Regulatory Organization of Canada (IIROC), on impostor sites that mirror those of registered firms and regulators.
They warned of fake emails, texts, websites and social media accounts exploiting investors’ desire to get in "on the ground floor" with crypto assets and exploit their fear of missing out. Rapid gains driven by fabricated statements, they said, are used to entice investors to deposit additional funds. And while some sites create an illusion of trust by letting investors withdraw part of their money, requests to withdraw all assets are never accepted.
“Ultimately, fraudsters will no longer respond to communication requests from investors,” the statement said, encouraging investors to check the CSA’s Investor Alerts page for firms and individuals to avoid, as well as AreTheyRegistered.ca for persons and businesses they can trust for investment advice.
