Don't fall for investment scams: RCMP say
The Kelowna RCMP have recently received a number of reports of fraud involving investments scams which have cost the victims a significant amount of financial loss.
The suspect(s) on these file types will offer the victim an investment opportunity that has a great rate of return in a short period of time. These opportunities are often unsolicited and may appear to have some legitimacy but will not hold up to scrutiny.
Examples of investment opportunities being used by the suspect(s) are: cryptocurrency, art, comic books, sports memorabilia and other such items.
The suspect(s) are able to complete the fraudulent transactions by offering a unique investment opportunity in these items and will provide contracts that appear legitimate offering a higher rate of return than what might be available with traditional investments. Once the first investment is made the suspect will offer additional opportunities and roll the original investment into the new opportunity inflating the value.
Once the victim asks the suspect(s) for a return on their investment they are told that the money is tied up and additional funds are required for the release of the money due to things like tax implications or issues with international borders. The suspect(s) at times do provide some money 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 Detachment.
Investors are encouraged to know the red flags of fraud.
If you feel you’re a victim of a scam, fraud or cybercrime, contact your local police and also report to the CAFC online or by phone at 1-888-495-8501. If they're not a victim, they should still report the incident to the CAFC.
Results of any investigations will be released when appropriate.