Canadians reported $310 million in investment-fraud losses to the Canadian Anti-Fraud Centre in 2024, and the Centre estimates true losses could exceed $3 billion because fewer than 10% of frauds are reported. Nearly half of Canadians say they have been targeted by fraudsters, according to a 2022 survey by Chartered Professional Accountants Canada, with households and people approaching retirement singled out as frequent victims. Scams range from pension withdrawal schemes to offshore investments, ICOs, precious gems and fixed-income offerings tied to unregulated issuers. Below are five practical checks that separate routine due diligence from a rescue attempt after the fact.

The read: the headline numbers understate the personal risk. The Canadian Anti-Fraud Centre recorded $310 million in reported investment-fraud losses for 2024, but it also warns that fewer than 10% of frauds are reported, a gap that pushes the Centre's estimate of true losses past $3 billion. That gap matters because fraudsters count on embarrassment and confusion to keep victims silent. A 2022 Chartered Professional Accountants Canada survey found 46% of respondents had been targeted by fraudsters at some point, showing the outreach is widespread, not niche.

Red flags to watch for

First, pay attention to how the contact begins. Unsolicited cold calls and high-pressure sales tactics are recurring features in bank and industry guidance. Scammers try to force rapid decision making, often with promises of guaranteed high returns. They may refuse to provide written materials, offer only verbal assurances, or send documents that look official but don't check out. That behaviour is a deliberate escalation tactic; it's cheaper for a fraudster to push one hurried transfer out of the country than to build a legitimate client relationship over time.

Second, look at the product being sold. The cases flagged across consumer guidance include pension withdrawal schemes aimed at people close to retirement, offshore investment pitches that require moving money overseas, initial coin offerings, precious-gem schemes, and fixed-income products that turn out to be issued by unregulated or fraudulent entities. Pump-and-dump stock manipulation has also been a recurring theme. Banks and consumer-protection organisations note that any opportunity asking you to send funds abroad should be treated with extreme caution because recovery is difficult once the money leaves Canada.

First check registration and disciplinary records. In Canada, advisors and firms must be registered with provincial and federal securities regulators, and those registration lists are public. A search of the relevant securities regulator should reveal whether a firm or representative is properly registered, and whether complaints or disciplinary actions are on file.

Mastheads

Second, dig for a paper trail. Ask the adviser for clear, written explanations of the investment, a full fee schedule and references to the registered issuers of any product they're offering.

If the adviser refuses to provide documentation, or insists on telephone-only contact, treat that as a red flag.

Third, search names and news. Do basic online homework: search the advisor and firm names, look for news stories or regulatory actions. Disciplinary records provide concrete examples of how misconduct can happen even inside regulated firms. For instance, the Financial Industry Regulatory Authority permanently barred a former representative of Caldwell International Securities Corp after finding excessive trading between July 2013 and June 2014. That representative earned about $57,000 in commissions while customers lost more than $37,000. Cases like that show behaviour that looks legitimate on paper can still cost clients meaningful sums.

Fourth, check complaint histories and ask about insurance or compensation schemes. Public registries and regulator records will show whether a firm has been disciplined. Consumer-facing material from major banks and industry education pieces consistently recommend reporting suspicious approaches and getting verification from a regulator before transferring funds.

Fifth, take a pause. A short delay changes the economics of fraud: pressure tactics lose force, third-party verification is possible and you limit quick transfers overseas that are hard to reverse. If an opportunity insists on immediate action, assume it's trying to close before you check the registration lists and disciplinary records.

I'd argue that the most reliable defence is procedural. The fraud statistics aren't an abstract policy problem; they're a checklist for every household and investor.

Start with the regulator's public lists, demand written materials and a transparent fee schedule, and treat any overseas transfer as a last resort. Those steps make the difference between a routine purchase and a potential loss that may never be recovered.

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Check provincial securities commission alerts and updates from the Canadian Anti-Fraud Centre before moving money. My read is that households nearing retirement should make these five checks routine before any pension withdrawal or overseas transfer.

This article was created with AI assistance.