OSC Urges Investors to Beware of Scams as Autumn Arrives

UPDATE: The Ontario Securities Commission (OSC) has just issued an urgent warning to investors as autumn 2023 ushers in what is known as “scam season.” Reports indicate that scammers are becoming increasingly brazen, employing tactics ranging from in-person visits to impersonating loved ones over the phone.

With the arrival of cooler weather, officials are stressing the importance of vigilance against a variety of rising scams. The OSC has compiled a comprehensive list of the most common digital age investment scams to watch out for this season.

Romance scams are a significant concern. These scams often begin with casual chats on social media or dating platforms. Once trust is established, fraudsters may present lucrative investment opportunities that are, in reality, misleading schemes. The OSC warns, “If you haven’t met someone in person and they ask for money, it’s likely a scam.”

Another alarming trend is the rise of cryptocurrency scams. As digital currencies gain popularity, more individuals fall victim to schemes where they are misled into transferring funds under false pretenses. Victims may be told they must deposit additional money before they can withdraw their initial investments.

Moreover, affinity fraud is targeting specific social or workplace groups. Fraudsters typically blend in before suddenly presenting investment opportunities that resemble Ponzi or pyramid schemes. Early investors may see returns, but these are contingent on continuously recruiting new investors, ultimately leading to significant losses when the pool dries up.

The OSC also highlights pump and dump scams, where high-pressure tactics are used to lure in investors via social media or messaging apps. Scammers artificially inflate stock prices, only to sell their shares before the value crashes, leaving others with worthless investments.

Boiler room scams present themselves as legitimate trading platforms with professional-looking websites. Staffed by aggressive salespeople, these operations can disappear quickly, leaving investors in the dark.

The advent of artificial intelligence (AI) voice scams poses a new threat. Scammers can now use advanced technology to mimic voices or images of trusted figures, such as family members or celebrities, tricking victims into handing over money for fraudulent investments.

Lastly, the OSC warns about exempt securities scams. These investments do not require formal prospectus filings and are often pitched as exclusive opportunities for wealthy individuals. Victims may receive unsolicited calls or emails about purportedly hot investments, pressured to sign documents that misrepresent their financial standing.

As the OSC emphasizes, awareness is key to avoiding these scams. Investors are urged to be skeptical of unsolicited communications and do thorough research before engaging in any investment opportunities.

What’s Next: The OSC will continue to monitor these scams closely and urges the public to report any suspicious activities. Stay informed and spread the word to protect yourself and others from falling victim to these fraudulent schemes this autumn.

For further updates, follow official OSC channels and share this critical information with your network to ensure everyone stays safe this season.