Warned! Most Prevalent Financial Scams Thriving in CANADA: Be On Guard Against Affinity Fraud, Crypto Scams, and More
In the ever-evolving world of finance, scams unfortunately continue to surface, preying on unsuspecting individuals. Scammers adapt and find new ways to exploit our trust. Stay informed about the latest financial scams in CANADA and protect yourself. Here’s what you need to watch out for:
Affinity Fraud
Affinity fraud targets groups such as social clubs, religious or ethnic communities. Despite our inherent trust for those within our circles, scammers often pose as trusted members or even use influential community leaders to gain acceptance. They lure victims into investing through seemingly secure opportunities.
Binary Options Scams
Online ads for ’traders’ offering legitimate investment platforms promising easy returns are often binary options scams. Victims are enticed by false promises of quick profits and then asked to invest through credit cards or money transfers, losing their funds and access to their accounts. Make note that the sale of binary options is illegal in CANADA.
Boiler Rooms
Boiler room scams begin with unsolicited calls inviting you to purchase shares in non-existent private companies about to be listed on major stock exchanges. These promises of dramatic post-listing price increases are misleading; once you realize the scam, it is unlikely that you’ll recover your funds.
COVID-19 Scams
Emerging during the pandemic, these scams exploit fear and anxiety by offering products or services to stop or prevent the virus outbreak. Stay informed with reliable sources, and visit the COVID-19 and Investment Fraud page for the latest updates.
Crypto Scams
Scams related to cryptocurrencies entice victims with promises of unrealistic returns, sometimes posing as investment opportunities endorsed by friends or online communities. Be cautious and skeptical of fake platforms and unsolicited pitches, as crypto assets carry substantial risks. Always ensure the seller, platform, or individual is properly registered.
Upcoming Part II
Stay tuned for Part II of our series on financial scams in CANADA. In the meantime, expand your knowledge and safeguard your finances by staying informed:
- Double dip or repeat scams
- Email spam
- Exempt securities
- Forex
- Investment seminars
- Offshore investment
- Oil and gas
- Ponzi or pyramid schemes
- Pump and dump
- Retirement account
- Romance scams