Canadian CSA Alerts Public to Investment Scams and Misleading Advice

The Canadian Securities Administrators (CSA), the council of the securities regulators of Canada’s provinces and territories, reminded Canadians to remain vigilant about potential investment scams and misleading advice in a new warning released on March 7, 2024.

While online financial advice is readily available, the CSA encourages investors to verify sources of information and work with registered professionals to reduce the risk of falling victim to fraud.

“Investment fraud is prevalent and increasingly sophisticated, affecting investors across the country,” said Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission. “It’s more crucial than ever for people to safeguard their financial interests by learning more about current scams, and verifying sources of investment information.”

Although social media platforms, apps, and websites have become a popular source of investing information, Canadians should recognize that not all information is provided by qualified or well-intentioned individuals, the CSA further notes. 

To help protect investors from fraud, the CSA encourages Canadians to verify information sources, work with registered professionals and firms, and opt for registered crypto trading platforms for crypto investments. The regulator also alerts the public to common scam tactics, including guaranteed and high profits, no risk and urgent action, requiring access to electronic devices, and loss recovery.