Waterloo Region, Ontario – Waterloo Regional Police are continuing to investigate an online investment fraud resulting in over $800,000 in losses in Waterloo.
On March 12, 2024, police began an investigation after receiving a report of a victim defrauded in connection to an online investment scam.
The victim viewed a video promising high returns with a short turnaround time. The video utilized artificial intelligence (AI) to make it appear that the investment was endorsed by Elon Musk and encouraged viewers to contact a provided phone number.
After the victim registered by calling the phone number, he was contacted by a suspect claiming to be from an investment company. The suspect offered their services to assist and guide the victim through the investment process, and convinced the victim to download an app that provided the suspect with remote access to the victim’s computer.
Between January and March 2024, the suspect accessed the victim’s bank accounts and transferred over $800,000 that the victim was led to believe would be invested. When the victim requested to withdraw the money he believed the investment had earned, he was told that before receiving his money, he would have to pay fees and taxes totalling over $40,000.
In 2023, over $60,000,000 in financial losses were reported to the Waterloo Regional Police Service. A large portion of these losses were the result of investment fraud. Fraudsters will often use social media and AI to create fictitious online ads to lure people to invest. In some scams, fraudsters use AI to pretend that a prominent person is endorsing the investment.
Members of the public are advised to be cautious when it comes to scams such as this. #StopPauseThink and review the following safety tips to help prevent becoming a victim of online investment fraud:
- Don’t engage in unsolicited investment opportunities seen online, and don’t provide personal information online to unknown persons or companies.
- Be cautious of investments promising higher than expected rates of return. If something seems too good to be true, it probably is. Pitches often claim that investing involves no risk and surefire profits.
- Don’t allow unknown programs to be downloaded onto your computer or unknown persons to access your computer.
- Ensure you are investing with a legitimate investment company. Conduct internet searches for the company and/or make a follow-up phone call to the company, as some fraudsters will use the name of a legitimate company.
If you have been a victim of an investment scam and suffered a financial loss, please report the incident online at www.wrps.on.ca/onlinereporting or call our non-emergency number at 519-570-9777.
If you were contacted about this type of scam but did not experience a financial loss, please contact the Canadian Anti-Fraud Centre at 1-888-495-8501 or visit www.antifraudcentre-centreantifraude.ca.
For more about investment fraud and how to protect yourself, visit Investment (antifraudcentre-centreantifraude.ca).