FOR IMMEDIATE RELEASE
March 22, 2023

Securities Commission uncovers 66 investment fraud victims and issues 34 investor alerts

Winnipeg – The Manitoba Securities Commission (MSC) is warning the public about a dramatic increase in the number of fraudulent online investment websites, which are attempting and in many cases successfully, exploiting Manitobans at an alarming rate.

An ongoing investigation into cryptocurrency fraud led MSC investigators to uncover a list of 58 possible fraud victims residing in Manitoba. The MSC proactively reached out to these individuals to determine if they were in fact victims of fraud, and to warn them of the dangers of investing any additional money. Of the 58 identified, MSC staff were successful in reaching 54 individuals, all who had been victimized through 29 separate online platforms. While conducting this investigation, an additional five scams were identified affecting eight victims. Losses range from $320 up to $206,000 per individual. The total losses to date are $710,000.|

“Online investment fraud is happening at an increasing rate,” says Jason Roy, MSC senior investigator. “We’re seeing people of all ages, professions and from around our province lose money to these scams. We were fortunate in this case to be able to connect with these individuals before they handed over any more money. We are all at risk, no matter how savvy we feel.”

For Fraud Prevention Month the MSC created a detailed list of simple background checks you should be doing BEFORE you hand over your hard-earned savings to anyone you don’t know and who approached you via social media, phone, text, YouTube and WhatsApp.
“The scammers pressure, manipulate, and bully their targets. I can tell you first-hand that it is heartbreaking to be on the phone telling someone that their money has been stolen and that they will likely not get it back,” says Ainsley Cunningham, MSC Manager, Education and Communications. “It’s vital that we spread the word of these scams to our neighbours, friends and family.”

The number one thing all Manitobans can do to protect themselves from investment scams is to check the registration of your adviser before you invest. If the individual or company you are talking to are not registered on aretheyregistered.ca, it is a major red flag of potential fraud. Registration to sell investments in Canada is the law.

All of today’s 34 Investor Alerts share these common red flags of investment fraud: