Recovery scams on the rise

OTTAWA, ON, Sept. 25, 2024 /CNW/ – The Canadian Anti-Fraud Centre (CAFC) and the Canadian Investment Regulatory Organization (CIRO) are warning investors about the increase of “recovery scams”. In most instances, these are frauds on top of fraud.

In investment recovery scams, fraudsters keep a list and contact previous investment scam victims by telephone, email, social media or use search engine optimization and claim to the victim that they can return the funds lost in a previous investment scam. Fraudsters will tell victims that there is a fee for their services and, in some cases, will ask for remote access to their computer or device. In the end, no funds are returned and more funds are potentially stolen.

Some of these scams try to falsely create an air of legitimacy by referencing CIRO or its predecessor organizations, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA).

Lately, some fraudsters are falsely claiming to be employees of the investment regulators. No CIRO employee will ever ask for payment from investors. Do not send any funds and, if in doubt, check with CIRO’s Complaints & Inquiries team to verify the legitimacy of such claims.

Investors should always independently verify the information they find on the internet. Do not rely on unsolicited information and always check the background, qualifications and disciplinary history of investment advisors registered with CIRO by checking the free Advisor Report for advisors registered with investment dealers, or the Canadian Securities Administrators’ National Registrant Search. 

How Canadians can protect themselves

If you’ve been a victim of fraud, fraudsters may target you again with a promise to get your money back.Never be afraid to hang up the phone.Never allow an unknown person to gain remote access to your computer/device.Always have your computer/device serviced by a reputable local business.Never pay an advance fee to obtain a refund.Search engine optimization refers to the ability to have websites appear in the first results of an online search. Don’t assume that top results mean companies are legitimate.If you had provided personal information or have granted remote access to your computer, follow these steps to protect yourself from identity fraud.

Stay informed and exercise caution to avoid falling victim to investment frauds and romance scams. Visit the CAFC and CIRO websites regularly get more tips and information.If you believe you have been a victim of this or a similar scam, immediately contact your bank, local police, your provincial or territorial securities commission, and the CAFC.

Quick facts

The CAFC notes that recovery scams had more than doubled in 2023 to over $1.6 million in losses. The CAFC estimates that only 5-10% of victims report instances of fraud.The CAFC is Canada’s central repository for data, intelligence and resource material as it relates to fraud. It provides timely, accurate and useful information to assist citizens, businesses, law enforcement and government agencies.CIRO is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada’s debt and equity marketplaces. CIRO is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians’ trust in financial regulation and the people managing their investments.CIRO’s Office of the Investor publishes information to help investors keep their investments safe which is available at Avoiding Fraud and Protecting Your Investments.

Associated links

Canadian Anti-Fraud CentreRoyal Canadian Mounted PoliceCanadian Investment Regulatory OrganizationRecovery scams on the rise

SOURCE Royal Canadian Mounted Police Media Relations and Issues Management