With every turn of technology, scammers continue to find new ways to trick Canadian investors. With rapid technological development, the rate of fraud in the financial sector continues to grow and becomes more sophisticated each year. For peace of mind and the safety of your assets, you must be aware of how common and new scams work.
Here are several investment scams in Canada you need to be on the lookout for in 2025:
Fake Investment Platforms
Since many Canadian investors are turning to online trading, there has been an increase in the number of fake investment platforms. These fake websites are usually disguised as legitimate brokerage firms. They run ads on social media with promises of investors making lots of money with minimal work. What happens is that users sign up and invest, then realize their funds are frozen, or they cannot withdraw them.
High-pressure sales tactics such as urging you to ‘act now’ and offering ‘limited opportunities’ are some of the biggest red flags of a fake investment platform. A real investment company doesn’t pressure investors or guarantee returns. You should also avoid platforms asking for personal information in advance.
Cryptocurrency Schemes
In recent years, some of the most common traps for investors are cryptocurrency scams. These scams can come in many guises, ranging from fake Initial Coin Offerings (ICOs) to nonexistent cryptocurrency exchanges. Scammers use flashy websites and fake endorsements to make you believe their sites are legitimate. They can also lure you with promises of high returns on new or lesser-known cryptocurrencies. As soon as they get your funds, the scammers disappear, and those promised returns never happen.
Be safe by only making investments with reputable, well-known exchanges. Stay clear from unsolicited offers or platforms that guarantee fast results. If you need to check your crypto wallet or crypto and fiat transactions on the go, a virtual private network (VPN) can help keep your data encrypted and safe from cybercriminals.
Ponzi Schemes
A Ponzi scheme is a common type of fraud that’s been around for a long time. But schemers still manage to trick investors, especially when the economy is unpredictable or the market is volatile. First, Ponzi schemes hook you by promising huge returns. Then, they say that the investments are linked to exclusive assets. However, the gains given too early are not actual profits — it’s the money swindled from new investors. It eventually falls apart when new investors stop pouring money into the scheme.
If you want to spot and protect yourself from Ponzi schemes, avoid high-returning investments that promise minimal risk. Check if the investment company is legitimate and doesn’t operate on vague or confusing models. Before you make an investment that seems “too good to be true,” always talk to a financial advisor or do research about it.
Social Media and Influencers’ Scams
Social media platforms and influencers have become a perfect medium to promote fake investment opportunities for scamming investors. Some influencers are unaware they’re endorsing a scam, while others might be taking part in it willingly.
Influencers create a sense of trust and familiarity between them and their followers. So, as a loyal follower, you may think that anything they promote or offer is legitimate. Make sure you do your research on the person or company behind any given investment recommendation you come across online.
Practical Tips to Protect Yourself
It doesn’t matter if you’re new at investing or you’ve done this for quite some time now. With so many scams looking for ways to rob you of your data and money, you need to learn to protect yourself. Here are several tips to keep your assets safe:
Use a VPN
Anytime you need to access sensitive data or make financial transactions, use an online VPN for security. A VPN protects your online activity by encrypting your internet connection, making it much more difficult for hackers to spy on you. When you connect to a VPN, your data goes through a secure server, masking your IP address and encrypting your data in transaction.
Avoid Public Wi-Fi for Financial Transactions
One of the main reasons hackers target public Wi-Fi networks is because they’re unsecured. Therefore, don’t log into investment accounts or make any transactions on public hotspots. A VPN can give you some security when you must use public Wi-Fi, but it’s always better to use private internet networks since they are safer.
Verify Platforms and People
When making an investment, don’t let the enthusiasm rush your decision. Before giving out personal information, you should always ensure that the website, person, or company you’re considering is real and trustworthy. When you can, look up reviews, check for the licenses, and talk to professionals before diving in. It will prevent you from making the same mistakes as previously scammed investors made.
Use Complex Passwords
Complex passwords might be harder to remember, but they’re even harder to breach by cybercriminals. It’s a simple form of protection you can add to all of your financial accounts. Also, if you come up with a strong password, don’t use it for all your accounts — it’s safer to create unique ones. If you have trouble remembering them all, use a password manager that will also help with stronger password generation and safer storage.
In a Nutshell
Unfortunately, by 2025, investors will continue to face fraudulent activities online and find them even more evolved. But by staying on top of these schemes and taking preemptive measures, you can avoid a negative impact on your finances. Keep your online activities private and secure and stay safe.
