CIRO warns against fraudsters posing as employees in investment recovery scams

Fraudsters use fake CIRO emails to scam investors, promising fund recovery for a fee

CIRO warns against fraudsters posing as employees in investment recovery scams

The Canadian Investment Regulatory Organization (CIRO) warns Canadian investors about fraudsters impersonating CIRO to conduct investment recovery scams.

The fraudsters use the email address [email protected], posing as CIRO employees to approach investors.

In an investment recovery scam, fraudsters target individuals who have already fallen victim to a financial scam. They claim they can recover lost funds for a fee.

Sometimes, they ask for remote access to the victim's computer or device. In the end, no funds are returned, more funds are potentially stolen, and the victim is defrauded again.

Recent complaints received by CIRO indicate that these fraudsters falsely claim to be affiliated with CIRO.

They state they are monitoring and investigating a prior financial scam and request information on the amounts lost, payment method, prior correspondence with the scammers, and proof of transactions, including bank statements, card statements, and evidence of crypto transfers.

These individuals are not employed by CIRO nor are they registrants of any dealer firm regulated by CIRO. All individuals registered to offer financial advice in Canada are listed on the National Registration Search of the Canadian Securities Administrators (CSA).

Investors can also verify the legitimacy of anyone claiming to represent CIRO with CIRO's Complaints & Inquiries team.

No CIRO employee will ever ask for payment from investors, which is an immediate red flag.

Fraudsters are becoming very sophisticated in their use of technology, so investors should always independently verify the information they find on the Internet or receive by email. For example, a list of Canadian securities regulators is available on the Canadian Securities Administrators (CSA) website.

Investors should not rely on unsolicited information and should always check the background, qualifications, and disciplinary history of investment advisors registered with CIRO or the CSA by checking the free AdvisorReport for advisors registered with investment dealers or the CSA's National Registrant Search.