Fraudsters nab more than half a billion dollars

You don’t have to look far to hear stories about people who have had their money taken by fraudsters. Last year, there was $554 million in reported fraud losses according to the Canadian Anti-Fraud Centre. And the number of losses is much higher since only 5 to 10% of frauds are reported.

It’s Fraud Prevention Month and we’re shining a light on fraudsters and their tactics. To help you keep your money safe the OSC has many helpful resources, including:  

• Register for our Telephone Townhall on Wednesday, March 6 from 7 to 8 p.m. to learn how to protect yourself from frauds and scams. 
• Visit our Fraud Prevention Month webpage for timely articles, videos and tools.
• Learn how fraudsters take advantage of behavioural biases to promote their scams.

Study of investing platforms uncovers concerning tactics

New OSC research looked at how digital engagement practices are being used by investing platforms to coerce, steer or deceive investors into making decisions that may not be in their best interest. Digital Engagement Practices: Dark Patterns in Retail Investing sheds light on several areas of concern, including dark patterns that obtain an investor’s personal information without their informed consent. The report also examines techniques that make it harder for an investor to withdraw funds or close an account.

What investors should know about dark patterns

Do you buy and sell stocks online? You should be aware that some investing platforms use techniques called digital engagement practices. The OSC’s research, Digital Engagement Practices: Dark Patterns in Retail Investing, found the use of dark patterns is prevalent, and this may negatively impact investor welfare.

There is competition among investing platforms to appeal to customers. They also want to maximize revenue and profit, sometimes this comes at the expense of investors. Increased awareness of the use of digital engagement practices may help you identify when your behaviour is being influenced.

Avoiding phishing nets

Getting texts from what seems like a legitimate source asking you for personal information? It could be a phishing attempt. Phishing scams are increasingly common. In fact, the CSA is warning registrants of an email impersonation scam using a type of phishing. Protect yourself by learning how to spot and avoid phishing.

Nipping romance scams in the bud

More than $50 million was reported stolen from Canadians by romance scammers in 2023. Romance scams were among the top three frauds based on dollars lost in Canada, according to the Canadian Anti-Fraud Centre. And that may be just a drop in the bucket — only 5 to 10% of scams are ever reported. Find out how to avoid deceptive romance scammers who lure your heart to steal your money.

Spring cleaning: credit check-up

Credit reporting agencies receive information when you borrow money, use your credit card or pay bills. This is used to create your credit report and generate your credit score. You may not be aware if fraudulent activity has compromised your credit activity, or if someone has taken credit in your name. Make sure you know the score by regularly checking your credit report.

Be on alert for AI-enabled frauds

Concern about scams that use artificial intelligence is growing. One way AI can be used is to generate video of someone famous trying to sell you an investment. Find out more to protect yourself from AI-enabled scams.

OSC Board extends term of CEO Grant Vingoe

Grant Vingoe’s term as Chief Executive Officer (CEO) of the OSC has been extended for five years. Board chair, Kevan Cowan, said under Vingoe’s leadership, the OSC has delivered on critical initiatives to better protect investors, modernize regulation for market participants, and provide new avenues for raising capital.

A whistleblower who provided information that allowed the OSC to act swiftly to protect investors from harm was awarded CAD $1.5 million. The whistleblower was an insider who submitted very specific and discrete non-public information to the OSC. This broadened the scope of an existing investigation.

The OSC Whistleblower Program offers protections for individuals who come forward with information about potential violations of Ontario securities law and awards up to $5 million for tips that lead to successful enforcement action. 

Tips can be submitted online to www.oscwhistleblower.ca and potential or existing whistleblowers with questions can call the confidential hotline at 1-888-OSC-5553 (1-888-672-5553).

Feedback sought on rules for public investment funds holding crypto assets

The CSA published for comment a set of proposed regulatory requirements for public investment funds that seek to invest in crypto assets. The proposed amendments tailor requirements for public investment funds investing in crypto assets to better protect investors and reduce risk.

Investment regulatory organization approved for Financial Advisor title use

The Canadian Investment Regulatory Organization (CIRO) now has the authority to grant credentials that permit people to use the Financial Advisor title in Ontario. The Financial Services Regulatory Authority of Ontario (FSRA) approved CIRO as a credentialing body under the Financial Professionals Title Protection Act. Use of the titles “Financial Advisor” and “Financial Planner” is restricted to professionals who meet proficiency and continuing education thresholds and who are subject to a code of conduct that requires that they put the interests of clients first.

Regulatory Updates & Initiatives

Here are some recent developments and publications: 

• The OSC announced the list of speakers and theme for OSC Dialogue 2024: Inviting, thriving and secure capital markets. Aligned with the OSC’s new six-year strategic plan, the event will take place on May 22, 2024, at the Metro Toronto Convention Centre.
• The OSC issued an award of CAD $1.5 million to a whistleblower.
• The OSC announced a new lineup of webinars for small and medium enterprises (SMEs).  
• The CSA is providing reporting issuers updated guidance on virtual shareholder meetings. 
• The CSA published its Systemic Risk Committee’s 2023 Annual Report on Capital Markets. The report provides an analysis of recent financial market trends and key vulnerabilities in Canadian capital markets and highlights the CSA’s efforts to mitigate those vulnerabilities and associated risks. 
• Canadian securities regulators seeking feedback on rules for public investment funds holding crypto assets. 
• Capital Markets Tribunal announced new members of the Securities Proceedings Advisory Committee. 
• OSC launched the 2024 Investment Fund Survey to collect information for the period ending December 31, 2023. The deadline to complete and submit the survey is April 30, 2024.

Tax time tips

It’s tax time. Filing your taxes is an important task. Take a moment to review tax basics, including tax deductions and tax credits, and try our interactive chart to see what tax bracket you are in.

Questions to ask before borrowing money

One of your most important relationships is with the person you see in the mirror. Being honest with yourself about money is important. If you’re considering borrowing, consider these key questions to determine if you’ll be able to face yourself before taking take on debt.

Get schooled on how to avoid fraud 

Sign up for Investing Academy's free courses, including Managing your Money 101 to learn more about how to protect your money from fraud.

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