Fraudsters lure you in with promises of high returns so you will unknowingly invest in their fake money-making schemes. They often pressure you to make an investment decision quickly, or convince you an investment is legitimate. Learn how to spot the red flags and protect yourself from investment scams.
What you need to know
High-return investments usually come with high risk. If you're promised high returns with little to no risk, do some research about the opportunity and company.
Check if the company or advisor is registered with the Canadian Securities Administrators.
Don't feel pressured into making an investment decision right away. Take time to decide if an investment is right for you.
Fraudsters lure you into their fake investment schemes, financial products and services. They usually sell their scams with promises of high returns and convince you to invest by emphasizing a limited-time offer, tax-free opportunity or insider information.
Signs of an investment scam
You’re required to pay a finder’s fee in advance for certain offers.
You’re guaranteed a high return on a low-risk or risk-free investment.
You're told it's a limited-time or one-time offer and you need to act fast to avoid missing the opportunity.
You're given insider or confidential information. Insider trading is illegal in Canada.
You’re pressured to send money via wire transfer to complete a transaction.
Stay safe with our tips
Don't feel pressured to invest your money, especially when you get investment advice from someone you’re unfamiliar with. If you’re not sure if it's a real opportunity, seek financial advice from a trusted professional.