The Canadian Securities Administrators (CSA) is alerting Canadians to the increasing threat of fraud and financial abuse targeting older investors. With the rise of digital platforms and artificial intelligence, scammers are employing sophisticated tactics to make their schemes appear credible and urgent. In observance of World Elder Abuse Awareness Day, the CSA encourages investors and their families to take proactive steps to recognize, avoid, and report investment fraud.
Protecting Older Canadians
“Older Canadians may face increased exposure to fraud and financial abuse,” said Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission. “Fraudsters often exploit trust, social connections, and new technologies such as AI to make scams appear legitimate. Taking simple precautions can help protect your financial well-being.”
Tips to Avoid Investment Fraud
The CSA recommends the following measures:
- Be cautious about sharing personal information online. Limit details shared on social media or with unknown individuals. Fraudsters can use this data to target or manipulate you.
- Be wary of unsolicited investment offers. This includes messages from new acquaintances or online relationships involving money, investment advice, or fund transfers, especially cryptocurrency.
- Do not rely on celebrity or politician endorsements. Scammers often use AI-generated images or videos to falsely suggest endorsements from well-known figures.
- Check before you invest. Use AreTheyRegistered.ca to confirm that the person or firm is registered, ensuring they meet regulatory requirements.
- Take your time. Fraudsters create urgency. Avoid pressure to make quick financial decisions without researching the investment and verifying registration.
Adding a Trusted Contact Person
The CSA emphasizes the importance of naming a Trusted Contact Person (TCP) on investment accounts. A TCP acts as a safeguard, allowing financial advisors to contact someone if they cannot reach the investor or suspect financial abuse, fraud, or diminished decision-making capacity.
A TCP:
- Does not have authority over the account.
- Cannot make investment decisions.
- Cannot access account information.
World Elder Abuse Awareness Day is observed annually on June 15. The CSA encourages Canadians to share this information and learn more about fraud prevention at securities-administrators.ca. Additional investor tools and resources are available online, including alerts on X (@CSA_News) and Facebook (@CSA.ACVM).
The CSA is the council of securities regulators from Canada’s provinces and territories, aiming to improve and harmonize capital market regulation.
For media inquiries, contact Ilana Kelemen at media@acvm-csa.ca or Erika Miller at erika.miller@gov.mb.ca. For investor inquiries, contact your local securities regulator.
