Religious organizations
Scam artists exploit the trust people of the same religious group have in the members of their congregation.
How is it done?
Often the scam artist will claim to be an ex-religious leader or, at least, someone who is very faithful. By claiming to be religious, acting the part, and learning their beliefs, a scam artist gains members’ trust. This causes people to drop their guard.
The fraud artist may promote an investment to the community, often saying it’s exclusive to them. The investments often claim to have a religious connection that they think will interest the religious members. The scam artist may claim that because it is a faith-based investment, it is exempt from regulation and therefore does not have to prove it is registered or provide supporting materials. In other instances, the scam artist will claim to be a financial advisor. Their involvement in the place of worship and their purported faith attracts member to invest using their services.
In religious organizations, there is a reluctance to report fraud because of embarrassment or hope the money will be returned. This only helps the scam artist get away with their scheme.
Who are the victims?
All the members of a targeted community are at risk. When one member invests with the scam artist, others will usually follow. Some may even unknowingly promote the scam. Scam artists target all denominations—no one is immune.
God’s Fraud Squad and other partnerships
British Columbia has thousands of churches and dozens of different congregations in many different languages. The BCSC aims to grow relationships with these communities and stop faith-based scams in progress. Our goal is to make sure that leaders and members of BC faith communities know the BCSC’s role in protecting investors, and how to report investment fraud if it happens to them. Learn more
Even if you are not considering an investment or haven’t given your money to a person selling the investment, take the time to bring suspicious activity to the attention of securities regulators. Your care and attention may save a friend, family member, or member of your community from falling victim to a scam artist.
In BC, contact BCSC Inquiries. You can also anonymously report suspicious activity through InvestRight’s Report a scam webpage.
Residents from other Canadian provinces can find contact information for their provincial securities regulator at
www.securities-administrators.ca.