Dec. 1, 2021
Securities Commission sounds alarm over surge
in online investment fraud, six-digit losses
Winnipeg –
The
Manitoba Securities Commission (MSC) is warning the public about a sharp
increase in the number of fraudulent online investment websites, which are attempting
to exploit Manitobans at an alarming rate, in some cases successfully.
The MSC is issuing twelve investor cautions this week on a variety of websites, which are soliciting Manitobans via phone, text, social media, web ads, and WhatsApp. Four Manitobans have reportedly lost a combined $252,000.
“Online investment fraud has proliferated enormously over the past year two years,” says Jason Roy, MSC senior investigator. “We’re seeing people approached from every direction. Once scammers get their hooks in, they are very good at what they do—separating you from your money.”
MSC recently launched the Time to Call
Out Fraud campaign on moneysmartmanitoba.ca, which
exposes the tactics used by
scammers to manipulate, bully, and defraud Canadians.
“It’s
vital that we spread the word to our neighbours, friends and family,” say
Ainsley Cunningham, MSC Manager, Education and Communications. “Anyone can
listen to one of these real calls, and hear exactly how these scams sound and
the techniques they use. The campaign exposes real investment scammers at work,
caught on tape. It shines a light on what is too often a hidden crime.”
“It is just so
easy to be taken,” says Cunningham. “We are all at risk, no matter how savvy we
feel. But especially the elderly, lonely and vulnerable. The scammers are so
good at exploiting our emotions – it’s so much pressure.”
The number one thing all Manitobans can do to protect themselves from
investment scams is to check the registration of your adviser before you
invest. If the company you are talking to is not registered on aretheyregistered.ca, it is a
major red flag of fraud. Registration to sell investments in Canada is the law.
All of today’s twelve cautions being issued share these common red flags of investment fraud:
· NONE of the companies are registered on aretheyregistered.ca to do business in Manitoba or anywhere in Canada;
· ALL of them are promoting Bitcoin, cryptocurrency trading, binary options (illegal in Canada), CFDs (Contracts for Difference) or Forex in some form;
· ALL of them promise an unreasonably high or quick return on investment
The scams work offshore making it nearly impossible for local authorities to hold them accountable. Many request you convert your money to untraceable cryptocurrency before sending it to them, making it next-to-impossible to recover.
Members of the public are advised to contact the MSC if they believe they have been targeted by any type of investment fraud attempt. Get the name of the company, hang up, and call MSC’s anti-fraud line at 1-855-FRAUD-MB.
For a complete list of cautions issued this week, see below.
MoneySmart Manitoba is an online education portal where Manitobans can grow their financial knowledge. Brought to you by the Manitoba Financial Services Agency (MFSA), it provides unbiased, vital information and tools to help build confidence and tackle some of the money issues that many Manitobans face in their day-to-day lives.
The Manitoba Securities Commission is a division of the Manitoba Financial Services Agency, a Special Operating Agency of the Government of Manitoba that protects investors and promotes fair and efficient capital markets throughout the province.
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Media Inquiries:
Jason Booth, Communications Coordinator, MFSA
| 204.945.1660 | jason.booth@gov.mb.ca
List
of Investor Cautions issued by the MFSA this week:
1. HY INVESTMENT and WWW.EX.HOO.COM
Connection: WhatsApp
Trades: Bitcoin / Cryptocurrencies / CFD / Forex / Binary Options (illegal in Canada)
Location: London, U.K., Ottawa
Notes: Falsely declares registration with the Ontario Securities Commission
Claims 25% ROI per day
2. ARB CAPITAL and WWW.ARB-CAPITAL.COM
Connection: Unsolicited Phone call
Trades: Forex, Stocks and Cryptocurrencies
Location: London, U.K.
Notes: Alert issued by the Financial Commission of Hong Kong
Claims 30 – 80% ROI per month, 100% bonus on initial investment
3. BITCOINUp and WWW.BITCOINUP.IO
Connection: Unsolicited Email
Trades: Cryptocurrency
Location: Amsterdam, Netherlands, Toronto, London, U.K.
Notes: Not registered in Netherlands or the U.K.
Claims a guaranteed 6% return minimum on each trade
4. BITFARGO, WWW.BITFARGO.IO, LEXORI and WWW.LEXORI.NET
Connection: Social Media
Trades: Forex and CFD
Location: St. Vincent and the Grenadines
Notes: Manitoba victim lost $3,000
5. CENTAURBTC and WWW.CENTAURBTC.COM
Connection: Unsolicited Phone call
Trades: Bitcoin and Cryptocurrencies
Location: New York, USA, London, U.K., Calgary
Notes: Claims 300% ROI per year
6. CRYPTOGAINFX and WWW.CRYPTOGAINFX.COM
Connection: WhatsApp
Trades: CFD and Binary Options
Location: Atlanta, USA, Boston, USA
Notes: Manitoba victim lost $18,000
Falsely declares registration with the US Securities and Exchange Commission
Fictitious US address
7. FINA CAPITAL and WWW.FINACAPITAL.COM
Connection: Unsolicited Phone call
Trades: Bitcoin, Cryptocurrencies
Location: London, U.K., Geneva, Switzerland, Australia,
Notes: Falsely claims they don’t need to be registered in Canada
Claims a 15 – 25% ROI per month
8. HYBRIDFX CRYPTO and WWW.HYBRIDFXCRYPTO.COM
Connection: WhatsApp
Trades: Bitcoin, Cryptocurrencies, Binary Options (illegal in Canada), Forex
Location: Georgia, USA, London, U.K.
Notes: Manitoba victim lost $30,000
Falsely declares registration with the US Securities and Exchange Commission
Falsely declares registration in the U.K.
9. IFC MARKETS and WWW.IFCMARKETS.COM
Connection: Web Advertisement
Trades: Forex
Location: British Virgin Islands, Malaysia, Cyprus, Czech Republic
Notes: Falsely claims they don’t need to be registered in Canada
10. SQUARED FINANCIAL and WWW.SC.SQUAREDFINANCIAL.COM
Connection: Unsolicited Phone call
Trades: Cryptocurrencies, Forex, Commodities
Location: Cyprus, Seychelles
Notes: Falsely declares registration in Canada
11. INDEPENDENT BROKERS FX and WWW.INDEPENDENTBROKERSFX.COM
Connection: Unsolicited Phone call
Trades: Cryptocurrencies, Forex
Location: New York, USA
Notes: Offering to trade for Canadians with non-registered offshore broker
12. VIRGINSMARKETS and WWW.VIRGINSMARKETS.COM
Connection: Web Advertisement
Trades: Cryptocurrencies and Forex
Location: Seychelles
Notes: Manitoba victim lost $200,000