How to Avoid Investment and Currency Scams in Canada

In today’s fast-evolving digital landscape, investment and currency scams are on the rise across Canada — especially those involving cryptocurrency. Between June 5, 2025, and November 23, 2025, Canadian financial regulators took decisive action, successfully deactivating over 3,900 fake investment platforms and cryptocurrency scam websites. These efforts targeted more than 6,900 individual URLs linked to fraudulent operations designed to steal hard-earned money from unsuspecting Canadians.

Unfortunately, despite these efforts, many people still fall victim. In one recent case, an RCMP investigation revealed that a man lost over $150,000 after being contacted through email and then a social media app promoting a “guaranteed” cryptocurrency investment. By the time he realized it was a scam, it was too late — his life savings were gone.

If you’re investing or considering investing in digital currencies or online platforms, it’s crucial to know how to spot and avoid investment scams and currency scams before it’s too late.

Why Are Investment and Currency Scams So Common in 2025?

Cryptocurrency and online investment platforms offer speed, accessibility, and high returns — all features scammers exploit. These fake investment opportunities often appear completely legitimate, with professional websites, customer support chatbots, and even fake celebrity endorsements.

Scammers use psychological tactics like urgency (“only 5 spots left!”) and fear of missing out (FOMO) to pressure victims into acting quickly — before they have time to verify the source. Once you send money, it’s nearly impossible to recover.

Common Types of Investment and Currency Scams in Canada

1. Phony Crypto Investment Platforms
   These websites mimic real exchanges like Binance or Coinbase. They promise high returns with little risk, but once you deposit funds, you can’t withdraw — or the platform disappears entirely.
2. Romance Scams with an Investment Twist
   Scammers build fake relationships online, then introduce a “sure-win” investment. Victims often wire large sums due to emotional manipulation.
3. Pump-and-Dump Schemes
   Fraudsters inflate the price of a cryptocurrency through false hype, then sell off their holdings — leaving investors with worthless coins.
4. Imposter Regulators or Brokers
   Scammers pose as representatives from legitimate financial institutions or even federal agencies, offering “exclusive” investment opportunities.
5. Fake Initial Coin Offerings (ICOs)
   These scams involve launching a new cryptocurrency with a polished website and white paper — but the coin is never real, and the developers vanish after raising funds.

How to Recognize a Scam Before It’s Too Late

Here are 5 red flags to watch for:

• Guaranteed high returns with no risk: No legitimate investment offers risk-free, sky-high returns. If it sounds too good to be true, it is.
• Pressure to act quickly: Scammers create fake urgency. Stop and verify before sending money.
• Unsolicited contact: Whether by email, social media, or phone, never engage with investment offers you didn’t seek out.
• Unregistered platforms: In Canada, legitimate investment firms must be registered with the Canadian Securities Administrators (CSA). Check the CSA’s National Registration Search.
• Poor website quality or confusing terms: Typos, broken links, or terms that are difficult to understand can signal a scam.

Steps to Protect Yourself from Investment and Currency Scams

1. Verify Before You Invest
   Use the CSA’s Investment Advisor/Dealer Check or the Ontario Securities Commission’s warning list to confirm whether a company or individual is registered.
2. Use Only Reputable Crypto Exchanges
   Stick to well-known, regulated platforms such as Newton, Coinberry, or Wealthsimple Crypto. Avoid apps or websites you haven’t thoroughly researched.
3. Enable Two-Factor Authentication (2FA)
   Protect your accounts with 2FA, preferably using an authenticator app — not SMS.
4. Never Share Personal or Login Information
   Legitimate companies will never ask for your password, recovery phrases, or SMS codes.
5. Report Suspicious Activity Immediately
   If you encounter a suspicious website or investment offer, report it to:
   • The Canadian Anti-Fraud Centre (CAFC)
   • Your provincial securities regulator
   • The RCMP or local police

What to Do If You’ve Been Scammed

If you suspect fraud:

• Stop all communication with the scammer.
• Document everything: emails, messages, transaction IDs.
• Contact your bank or payment provider immediately to see if funds can be reversed.
• File a report with the CAFC at www.antifraudcentre-centreantifraude.ca.

While recovery is difficult, early action increases your chances of assistance.

Stay Informed, Stay Safe

The fight against investment scams and currency scams is ongoing. Regulators are doing their part, but the best defense is an informed investor.

Take time to educate yourself, double-check every opportunity, and always trust your instincts. If something feels off — it probably is.

For more resources on safe investing in Canada, visit the Canadian Securities Administrators or your provincial securities commission’s website.

Your financial future is worth protecting. Stay alert, stay skeptical, and invest wisely.