Securities regulator warns investors of agency imposters, money recovery scams

Albertans who may have fallen victim to investment fraud are being warnedpeople could be posing as staffwith the Alberta Securities Commission (ASC), as the regulator cautionsof the dangers of "recovery room" scams.

The commission issued the warning Tuesday, advisingthe public to be wary ofunsolicited communications from individuals claiming to be from the ASC.

The agency, responsible for administering the province's securities laws, said it hasreceived recent complaints of victims being contacted by a personclaiming to work for the regulator.

"In each instance, the person who received the call had previously lost money in an offshore crypto-related investment," the ASC said in Tuesday'salert.

"We believe that the individuals claiming to be ASC staff may be operating a recovery room scam, in an attempt to re-victimize investors who have already lost money."

CynthiaCampbell, director of enforcement at the commission, said that, generally speaking, recovery room scamstake shape in two forms.

One is through online advertisementsoffering to help people who have been victimized in different scams, including online versions.

Another involvesscammers reaching out directly to those who have already lost investments, offering to help recover the funds.

"And the reality is, in these types of scams, it's typically the same fraudsters who are running the original scam," Campbell said in interview.

"That's how they have the victim's contact information. And that's how they know they've been defrauded."

Campbell said they are seeing more incidents ofpeopleimpersonatinglegitimatecompanies, regulators or other institutions.

"It is horrible," she added. "Many of the victims we see have been depleted of everything they have,but in the hope of trying to recover it, they will borrow money to try to pay these fees to the recovery room."

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As part of Tuesday's warning, the agency stressedit will never ask the public to send money,nor would it promote companiesthat claim to recover funds from scams.

The regulator said it also would not makeunsolicited calls or send texts, messagesor emailsasking for payment or banking information related to enforcement actions or investigations.

Campbell said tips on how to identify and avoid investment fraud can be found on the ASC'scheckfirst.ca website.

"If someone receives unsolicited contact from someone who says they're from the Alberta Securities Commission or another agency, they should verify that information," Campbell added.

She advised to get the person's name, phone number and email address, then contact the agencyto ensure the person actually works there.

"People across Canada are being victimized every day,"she said.

"If someone thinks they've been the victim of an investment fraud, we really encourage people to report it to the ASC. We may not be able to help you get your money back, but you can help us prevent other people from being victimized."

Campbell saidregulators haveseen"an explosive growth" in online investment scams over the past few years. Thesecan include scam websites, social media ads or even dating apps.

In October, Calgary police said residentshadlostmore than $22.5 million from 340 reported cryptocurrency scams so far in 2023, with many people lured in by the false prospect of high returns.

Earlier this year,the Canadian Anti-Fraud Centre also warned people of unsolicited scam calls. Its datashows that last yearthere were 849 reported victims of scam calls in Alberta,totalling more than$5.4 million.

The most commonly reported fraud calls to Albertans were related to offers for servicesor bank investigations.