Stay safe from Investment Scams

---

Each year, many Canadians fall prey to investment fraudsters. With advancements in AI, these scams are becoming increasingly sophisticated1. According to the Royal Canadian Mounted Police, victims of fraud and cybercrime in Canada lost over $638 million in 20242 

An investment scam occurs when fraudsters target vulnerable individuals, enticing them to invest money in cryptocurrency, stocks, real estate, or businesses. These scams can occur via phone calls, social media,z advertisements, or fake websites3.

• Cryptocurrency Ponzi Schemes4
• Fraudulent Real Estate Investment Trusts (REITs)3
• Phishing Emails Masquerading as Financial Advisors2
• Investment Tips from Social Media Influencers5

Beware of Requests for Bank Information: Investment fraudsters often ask for your bank account details to facilitate an investment. Once they have your information, they may transfer your funds to their account, and you might never hear from them again.

Lack of Investment Proof Is a Red Flag: If someone fails to provide proof of the investments they've made on your behalf, such as statements or reports with official bank contact information, it may be a sign that no legitimate investments have been made.

High-Pressure Tactics Signal a Scam: Scammers use phrases like "once-in-a-lifetime opportunity" or "you must decide today" to pressure you into making impulsive decisions. These should be seen as warning signs.

AI-Driven Scams Are on the Rise: Scammers are increasingly using AI to create video or audio recordings that mimic people you know, such as family or coworkers. Listen for odd phrases and slightly robotic-sounding voices that don't quite match the person you know.

• Research and Verify Independently: Before investing, check if a company or person has been flagged as a risk to investors by the Investment Industry Regulatory Organization of Canada.
• Check Company Registration: Use the National Registration Search tool to verify the company's registration. If the company isn't registered, conduct thorough due diligence before investing.
• Get a Second Opinion: Always seek a second opinion before making significant investment decisions. You can also check with the institution posted in the scam directly for verification.
• Never Share Personal Details: Keep your personal information, such as banking details, private. Your financial institution will only request personal information if you have submitted paperwork/forms for an application or transaction.
• Don't Feel Pressured to Act: Investment fraudsters create a false sense of urgency. If you sense any anger or frustration from them for not accepting an investment offer immediately, it's likely a scam.
• Be Skeptical of Unsolicited Offers: Whether the offer seems legitimate or not, always remain skeptical and cautious to protect yourself and your money.

Insurance Kit only deals with investment products provided by insurance companies, such as segregated funds, annuities, and high interest savings accounts, which provides principal guarantees and other protections that banks do not provide.  

Contact us to learn more about how insurance producs should be an integral part of your investment portfolio.

Related links:

How to spot scams from the R.C.M.P.

Crypto Fraudsters get jail in U.K.

Even CNN and BBC websites could be fake

References: 

1 The rise of AI: Fraud in the digital age - Competition Bureau Canada - March 4, 2024 

2 The cost of fraud exceeds financial loss – RCMP – March 13, 2025

3 Investment frauds – Competition Bureau Canada - May 1, 2024

4 Canadians are losing millions in crypto to fraudsters. Here is how to spot red flags - CBC News – December 27, 2024

5 Phishing and smishing scams – Competition Bureau Canada – January 19, 2022

This article is provided by Manulife Ban; slightly edited for formatting purposes.