Fraud takes costly toll on Canadian investors

Fraudsters are taking record amounts of money from Canadians. The Canadian Anti-Fraud Centre (CAFC) saw a significant rise in reported losses last year — a total of $638 million in 2024. Added up over the years a disturbing trend emerges for investors. 

‘’Reports to the CAFC indicate that over $1 billion has been lost to investment fraud since 2021, making it the highest-reported type of fraud over the same period,” said Jeff Thomson, Acting Manager of Operations with the CAFC. “Cryptocurrency-related investment scams remain a primary driver of these losses, as fraudsters exploit social media, fake trading platforms, and impersonate legitimate companies to deceive victims.” 

Investment scammers often try to convince you to put money into a questionable investment — or one that doesn’t exist at all. Generative artificial intelligence (AI) is increasingly being used by scammers to trick you into investing in common scams, often involving crypto currencies. 

In most cases, you’ll lose some or all of your money. That’s because the money is rapidly moved offshore. Crypto fraud often funds organized crime and terrorist organizations.

Find out more about eight common investment scams and how to spot the red flags of crypto fraud. 

“Protecting yourself starts with education — always verify investment opportunities, be cautious of promises of high returns with little risk, and never send money to someone you have only met online,” said Thomson.  

He encourages people during Fraud Prevention Month to help raise awareness by sharing investment fraud prevention tips with friends and family, and learn how to Recognize, Reject, and Report fraud.

Slow down to curb scams

Approaching a new investment opportunity? Slow down, don’t be rushed — and make sure you’re safe before proceeding. Visit FraudPreventionMonth.ca to find out about scams and how to avoid them.

Tune up your scam radar

Scammers make a career out of trying to trick you. To outsmart them:  

• Be aware of how a fraudster might approach you.
• Find out how they take advantage of your behavioural biases to promote their scams.
• Watch out for online “friends” who gain your trust but then ask you for money or to invest — they could be a long-haul scammer.  

GS Partners required to refund all money and cryptocurrency deposited by investors

These deposits are tied to alleged investments involving certificates, digital assets and the metaverse. The OSC is participating in a multi-jurisdictional settlement along with other provincial and U.S. state securities regulators. Investors must file a claim within 90 days of Feb. 21, 2025, to receive a refund. GS Partners was added to the OSC Investor Warning List in July 2023.

How do you know whether to save or invest?

Both saving and investing involve growing your money. And both can help you reach your goals. However, there are some key differences, and pros and cons for both.

Sign up for OSC Dialogue 2025: Future Ready

Registration is now open for OSC Dialogue 2025, our marquee event which explores key trends shaping today’s markets, our work at the OSC, and the critical importance of collaboration across all stakeholders. Join us on April 24 at the Fairmont Royal York in Toronto, Ontario. 

Agenda highlights include keynote presentations by Matthew Boswell, Commissioner of Competition, Competition Bureau, and Dexter John, incoming Financial Services Regulatory Authority of Ontario Chief Executive Officer. Attendees will also hear a wide-ranging discussion between Grant Vingoe, OSC Chief Executive Officer and Kevan Cowan, Chair of the Board. 

Leading policy and regulatory experts will share their perspectives on hot topics such as artificial intelligence, visible enforcement, sustainable finance, and competition. A panel of OSC leaders will offer insights into emerging trends and key priorities.

Regulatory Updates & Initiatives

Here are some recent developments and publications: 

• The Canadian Investment Regulatory Organization (CIRO) is exploring how it can support the adoption of consumer-driven banking, also known as open banking, while reducing burden and duplication. Consumer-driven banking allows consumers and small businesses to securely share their financial data with approved service providers.  
• The OSC announced it will participate in a multi-jurisdictional settlement, along with other provincial and U.S. state securities regulators, with GS Partners and its affiliated companies. Investors must file a claim within 90 days of Feb. 21, 2025, to receive a refund.

Mutual funds and how they work

When you buy a mutual fund, you’re pooling your money along with other investors. You buy units or shares of the fund. As more people invest, the fund issues new units or shares.

Protecting your money and family in many languages

Visit Investing Introduction to find fraud prevention tips in 23 languages. Share helpful investing resource kits and videos to protect your money and keep your family safe.

Warnings & Alerts

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