Looking for love online can be a wild ride and — according to the Canadian Securities Administrators’ — it can lead to scams that could cost you big bucks.
On Monday, February 14, the CSA shared information about 2021 and, apparently, investment and romance scams were the top two reported swindles of the year.
The group reported that romance fraud has increased by almost a quarter year over year and that the monetary loss was over $64 million in 2021, which is more than double 2020’s number of $27 million.
The group also warns that fraudsters are becoming more sophisticated in how they target Canadians, with people increasingly using social media and dating sites to bamboozle people into online relationships. They then leverage that friendship or romantic connection to request money for alleged investment opportunities.
They also warn that it can happen to anyone, regardless of age or demographic, but they do have some tips on how to keep your money safe.
The CSA says that you should be skeptical about unsolicited investment offers from people who have just entered your life and to never send money or invest with someone you’ve only met through social media or a dating site.
Another important step is to thoroughly research investment opportunities before you put out money and to avoid situations where there are “guarantees” of high returns with very little risk, as no such thing exists.
“Resist the pressure to invest immediately and ignore the fear of missing out,” warns the CSA. “Scam artists use this tactic to make you focus on the reward aspect of their investment offer, and create a sense of urgency that prevents you from researching its legitimacy.”
They also want you to know that it’s totally ok to say “no.”
“Fraudsters work hard to override your instincts with complex documents and the use of overcomplicated, inconsistent, jargon-filled explanations,” the CSA says.
And if you don’t understand it and your questions aren’t being totally answered, just walk away!
This article’s cover image was used for illustrative purposes only.
