Investment Fraud Plagues Canada But 90-95% Goes Unreported
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Canadian authorities are marking Fraud Prevention Month by urging Canadians to help fight fraud. For the first time since the CSA started tracking incidences of investment fraud, scams among younger Canadians have trended upwards.
The Canadian Securities Administrators (CSA), the Canadian Anti-Fraud Centre (CAFC), and the Royal Canadian Mounted Police (RCMP) are asking residents to report suspected scams and increase vigilance when considering online investment opportunities in order to combat the escalating threat of online investment fraud.
Spear Phishing And Romance Scams Are Prevalent
$310 million dollars was reported lost to investment fraud in 2024, according to CAFC, which highlighted that 90 to 95 percent of fraud goes unreported, suggesting that reported losses represent only a fraction of the true harm to Canadians.
Spear phishing (targeted email scams) and romance scams are part of the top ten frauds reported in 2024 – both common tactics in online investment scams.
Over 4,000 investment fraud cases were reported to the CAFC in 2024. Twenty-three percent of Canadians say they have been approached with a possible fraudulent investment; a five-point rise since 2020.
Investment fraud incidence is trending upwards among Canadians aged 55 and under. There is an increase of fraud attempts targeting those with little to no savings, and those who are new to investing.
Forty-six percent of Canadians report encountering investment opportunities on social media. Thirty-four percent of Canadians say they would report an investment fraud to the police/RCMP and eight percent say they would go to their local securities commission/regulator.
“We are witnessing a concerning trend of fraudsters exploiting digital and social platforms”
Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission, said: “Online investment fraud poses a significant risk to Canadians’ financial security and well-being. 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.”
Chris Lynam, Director General of the Canadian Anti-Fraud Centre, said: “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 some one else from becoming a victim.”
Richard Burchill, RCMP Director General of Financial Crime., commented: “The RCMP works collaboratively with provincial, national, and international law enforcement partners, as well as other agencies like the CSA to identify innovative ways to enhance our efficiency and enable successful strategies to fight fraud. 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.”