Sophia Leung, Head of Protect Platform at TD Bank, which manages fraud strategy and cyber-threat management, advises consumers to conduct adequate studies before making investment decisions that could result in significant financial loss due to fraud.
“Investment scams can have a huge impact on victims, where they are misled into paying large sums of money, sometimes almost all of their life-savings, toward fake investment opportunities,” Leung said. “Canadians should exercise caution when seeking investment advice from people they do not know, especially as their reliance on technology and communication tools continues.”
The Canadian Anti-Fraud Center has revealed that investment scams cost Canadians a total of $163.9 million in 2021, making it the costliest reported scam in the country at the time.
Based on a TD survey, 52% of Canadians believe they are victims of fraud, with eight in ten (82%) saying that excessive online activity increases the risk. However, 51% of Canadians say they do not bring up topics on fraud dangers and prevention in conversations with individuals they know, such as friends and family.
“Fraudsters will continue to adapt and develop their strategies, so it is important to continue to educate and learn about the best ways to prevent fraud and help avoid financial losses,” Leung said. “By regularly sharing and discussing your experiences of receiving fraud calls or messages, we can help people become more aware of scams, especially when the conversations are with people who have But we trust.”
