The Financial and Consumer Affairs Authority says in recent months, Saskatchewan has seen an increase in fraudulent investment opportunities that involve cryptocurrency. The FCAA wants to warn investors about fraudsters who are using various techniques such as flashy advertising with promises of high returns. They appear to be targeting individuals who are looking to supplement their income for retirement purposes.

The fraudsters create fake websites and use advertisements, recommendations, and private messages to convince investors that they should part with their money to achieve big returns.

Warning signs include promises of high returns, guaranteed risk-free investing, pressure to buy and complex documents and technical.

Here are some steps investors can take to protect themselves:
• Do your research – Before making an investment, always examine the website thoroughly and do your own research. Fraudulent websites will have “too good to be true” statements and grammar mistakes. You can also search the company’s reputation online to see the reactions and reviews of other people who may have invested.
• Verify registration – Check to see if the person or company, offering the online investment is registered and crosscheck their details with the Canadian Securities Administrators National Registration search.
• Check disciplinary history – Before investing check the history of the person or company, to find out if they have broken regulatory rules in the past. It is easy to do, using the Canadian Securities Administrators Cease Trade Orders database and the list of disciplined people and companies.
• Be suspicious of high returns – Be suspicious of anyone who promises that an investment will perform a certain way. If it sounds too good to be true, it is.
• Do not be pressured – Do not feel pressured to make quick decisions.
• Get a second opinion – Seek professional advice before investing in a product or service.
If you have discovered a fraudulent investment opportunity, you can report the scam to the FCAA Securities Division at enforcementfcaasd@gov.sk.ca or 306-787-5936.
For more investor protection information go here.