The Nova Scotia RCMP is alerting the public to the ongoing threat of investment fraud, which is costing Nova Scotians millions.
Investment fraud schemes continue to target unsuspecting individuals. In 2023, Nova Scotians lost over $4.9 million to investment fraud, making it the number one scam by dollar value.
Victims are enticed with financial security through an investment opportunity with guaranteed, better-than-average returns. Fraudsters pretend their early investors are turning a high profit by paying them with money from new investors. Eventually the scheme collapses, and victims lose most, if not all, of their investment.
With the introduction of cryptocurrencies, these scams have become easier to commit and harder to track. Victims might think they are investing in a new digital currency or trading on a secure exchange, when in reality, they are putting money directly into an account controlled by the fraudster.
The Nova Scotia RCMP emphasizes the importance of due diligence when considering investment opportunities. You can protect yourself by following these tips:
- Exercise caution: beware of anyone offering high-reward, low-risk investment opportunities, especially if they come with insider information. The opportunity is likely a scam, and even if it is legitimate, making investment decisions based on insider information is illegal.
- Do your research: take the time to research an investment opportunity. Anyone involved in securities trading or advising in Nova Scotia must be registered with the Nova Scotia Securities Commission (NSSC). If someone is not registered with the NSSC or another Canadian securities regulator, they are likely running a scam.
- Seek advice: remember that cryptocurrencies are currently unregulated in Canada and do not benefit from the same fraud protections as things like credit cards. Always use well-known and reputable exchanges to obtain cryptocurrency. If in doubt, seek advice from a reputable financial institution.
If you, or someone you know, is the victim of investment fraud, report it to your local police and the Canadian Anti-Fraud Centre. For more information visit: https://antifraudcentre-centreantifraude.ca/index-eng.htm