RCMP warn of rise of investment scams
Mounties in the Okanagan are warning about investment scams after victims have reportedly been defrauded of significant amounts of money recently.
Kelowna RCMP say the suspect or suspects in these cases have offered victims investment opportunities with promises of a great rate of return in a short period of time.
The opportunities are often unsolicited and may appear to have some legitimacy, as they are offering victims things like cryptocurrency, art, comic books, sport memorabilia and other items.
The victims are offered the opportunity, and once the first investment is made, the suspect will offer additional opportunities.
Once the victim requests the return from their investment, they are told the money is tied up and that additional funds are needed to release the money due to things like tax implications or issues with international borders. In some occasions, the suspect does provide some money back to the victim, but never as much as the original investment.
“The Kelowna RCMP is reminding people that when considering an investment opportunity to carefully research the investment and the individual or firm offering the investment” said Cst. Mike Della-Paolera, media relations officer for the Kelowna Regional RCMP.
The RCMP says people should familiarize themselves with the 10 red flags of fraud:
- Unregistered individuals and firms
- Offers of unrealistic returns
- Pressure to make quick decisions
- Financial advice from strangers
- Exclusive investment offers
- “Insider” information
- Offshore firms and advisors
- Anti-establishment
- Cutting out the paper trail
- Avoiding the question
People who are targeted or fall victim to scams, fraud or cybercrime are advised to contact the local police and report the incident to the Canadian Anti-Fraud Centre online or at 1-888-495-8501.