Canadian Authorities Warn of Escalating Online Investment Fraud and Urge Reporting

In a concerted effort to combat the growing threat of online investment fraud, the Canadian Securities Administrators (CSA), the Canadian Anti-Fraud Centre (CAFC), and the Royal Canadian Mounted Police (RCMP) are urging Canadians to remain vigilant and report suspected scams to help fight fraud. The Canadian authorities have expressed particular concern over the rising prevalence and sophistication of online investment scams. 

For the first time since the CSA began tracking incidents of investment fraud, younger age groups are showing upward trends in being targeted. According to the CSA’s 2024 Investor Index Survey, 46% of Canadians reported encountering investment opportunities promoted on social media—a 17% increase compared to 2020—with younger age groups being especially susceptible.

source: CSA

“Online investment fraud poses a significant risk to Canadians’ financial security and well-being,” said Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission. “We are witnessing a concerning trend of fraudsters exploiting digital and social platforms to target Canadians and we urge everyone to be cautious and research each investment opportunity before handing over your hard-earned money.”

Earlier this year, the CAFC reported that Canadians lost over $310 million to investment fraud in 2024. Over 4,000 investment fraud cases were reported to the CAFC in 2024, however, it estimates that 90% to 95% of fraud go unreported. This suggests that the reported losses represent only a fraction of the actual financial harm inflicted on Canadians. CAFC data also revealed that spear phishing (targeted email scams) and romance scams both rank among the top ten types of fraud reported in 2024.

source: CAFC

“Fraud is a crime that affects more than just your finances and the emotional tolls can linger for victims long after the fraud is uncovered. If you’ve been targeted, report it. It’s the best way to help with the fight against fraudsters and could help someone else from becoming a victim,” said Chris Lynam, Director General of the Canadian Anti-Fraud Centre.

Victims often feel reluctant or embarrassed to admit they’ve been scammed, but reporting fraudulent activity can facilitate enforcement and prevention. “The public is also a partner in this fight and we encourage Canadians to report instances of scams and fraud as these reports help identify trends that allow law enforcement agencies to better target their efforts. The information gained is also used to tailor awareness messages to alert people and prevent losses,” said Richard Burchill, RCMP Director General of Financial Crime.