Investment fraud in Canada
According to research (2012 Investor Index ) by the Canadian Securities Administrators , just over one-quarter of Canadians (27%) believe they have been approached with a possible fraudulent investment at some point in their lives, and over half of Canadians (56%) agree they are just as likely to be a victim of investment fraud as anyone else.
Other CSA research (2007 Investor Study ) shows that people who invest and lose money in a fraud—especially those who invest over $10,000—report negative impacts on their health and relationships. They report that they often experience depression or feelings of loss and isolation. Finally, 68% of fraud victims report they are less likely to trust people in general and 63% report they are less willing to make future investments.
Canada’s enforcement system
While enforcement system of securities-related misconduct varies somewhat by jurisdiction, the overall process is similar across the country. Provincial securities regulators are a key component of the enforcement mosaic. This mosaic also includes SROs , such as the Investment Industry Regulatory Organization of Canada and the Mutual Fund Dealers Association, and Crown prosecutors, the courts, and law enforcement agencies like the Royal Canadian Mounted Police.
This chart explains how cases proceed through most provincial and territorial securities regulators:
Source: Canadian Securities Administrators 2009 Enforcement Report
Research before you invest:
- Get to know the Fraud warning signs
- Familiarize yourself with popular scams by reading the Common investment schemes section
- Visit Avoid investment fraud to learn how to identify con artists and the approaches they use to lure investors
- Learn about Fraud among friends and the groups scam artists target
- Read Investor alerts to see if the BCSC has issued any recent consumer warnings about products or individuals