It’s International Fraud Awareness Week: Are you fraud aware?
What is Fraud? Fraud is an action that skirts unethical financial or personal advantage. Fraud is a practice led by deception to deprive one of money or property. The deception affects business, government and individuals, but it is seen to most dramatically affect individuals, advisors and investors alike.
Fraudsters may falsely claim to be registered with Investment Industry Regulatory Organization of Canada to lure investors into scams. Some of the tactics used to trick investors into believing these fraudsters are:
Fake social media profiles
Phishing (legit-looking emails & website)
Promises of high returns with little to no risk
Claims of insider information
IIROC is aware of false claims being made by fraudsters on social media and other platforms to mislead Canadian communities into believing the individual is an IIROC-accredited professional. Investors are encouraged to confirm if the investment firm is registered with IIROC. In addition to the numerous resources available on the IIROC website, Investors can also verify the background, qualifications and any disciplinary history of investment advisors registered with IIROC by checking the free AdvisorReport.
It’s important to report fraud. It’s one of the best ways for authorities to gather the evidence needed to bring down fraudsters and better protect you. Learn more about reporting fraud here: Canadian Anti-Fraud Centre. If the fraudster claims to be regulated by IIROC, make a complaint here: How to Make a Complaint.