ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Here’s Why Investment Scammers Are Targeting Canada

Fraudsters receive a 10% commission on the amount they manage to steal.
PUBLISHED MAR 6, 2024
Cover Image Source: Unsplash | Photo by Resume Genius
Cover Image Source: Unsplash | Photo by Resume Genius

Every evening, approximately 150 people walk into a building in Kyiv, Ukraine, unaware of the nefarious activities that take place within. Their sole purpose? To deceive and defraud Canadians of their hard-earned savings through a range of investment scams. This shocking revelation comes from a whistleblower, who, under the pseudonym "Alex," shed light on the inner workings of these fraudulent call centers, per CBC.

Scammers are not sparing anyone in Canada. Image Source: Unsplash|Photo by Sasun Bughdaryan
 Image Source: Unsplash | Photo by Sasun Bughdaryan

According to Alex, the building on Tarasa Shevchenko Boulevard is just one of many similar establishments across Eastern Europe. These call centers operate under the command of about two dozen criminal organizations with a global reach. Their chosen modus operandi involves promising victims high returns on investments, particularly in cryptocurrency schemes.

Cover Image Source: Pexels/Pixabay
Image Source: Pexels | Photo by Pixabay

Canada has become a prime target due to a lack of robust enforcement against such scams. Despite warnings from financial authorities, the absence of significant prosecutions sends a message to scammers that the nation is an easy target. Statistics from the Canadian Anti-Fraud Centre (CAFC) corroborate this concern, revealing that over $300 million was stolen from Canadians in investment scams in 2023 alone. Shockingly, only a fraction of victims report their losses to authorities, allowing these criminal enterprises to operate with relative impunity.

Woman Loses More Than $7,000 to Investment Scam Seen on TikTok. Pexels | By Andrea Piacquadio
Image Source: Pexels | Photo by Andrea Piacquadio

The scam typically begins with enticing social media ads featuring fake endorsements from prominent Canadians like Prime Minister Justin Trudeau or business magnate Kevin O'Leary. These ads direct users to clone websites resembling reputable Canadian news sources, where they are lured into cryptocurrency investment opportunities. Subsequent phone calls from fraudulent "financial advisers" manipulate victims into depositing funds, ultimately depleting their life savings.

Alex, having firsthand experience in the industry, attests to the manipulative tactics employed by scammers. Building rapport and feigning friendship with victims, particularly the elderly and isolated, are common strategies to extract information and coerce investments.

Image Source: Pexels|Photo by Tima Miroschnichenko
Image Source: Pexels | Photo by Tima Miroschnichenko

The investigation extends to the recruitment and employment practices of these call centers. Telegram chats reveal job postings specifically targeting Canadians, offering substantial salaries and commissions to successful fraudsters. Such incentives far exceed average wages in Ukraine, making scamming an appealing albeit morally bankrupt profession.

The audacity of these criminal enterprises is further evidenced by interviews conducted with call center managers. "Look, this business has been working already for how long? It's the same advertisements and the same everything…. Look, stupid people are always looking for some kind of whatever that they can invest in, do nothing, and bring in more money for [the scammers]," one of them said. 

Unabashedly acknowledging the fraudulent nature of their activities, these managers express confidence in the resilience of their schemes, despite economic indicators suggesting otherwise.

As Canadians continue to fall victim to these insidious scams, it becomes imperative for authorities to bolster enforcement efforts and educate the public on recognizing and reporting fraudulent activities.

MORE ON MARKET REALIST
Fans were heartbroken to see the player, Ryan, walk away empty handed.
23 minutes ago
Harvey couldn't believe the hard researched facts about catfish on the show.
1 hour ago
Carey demanded the Wikipedia page of "Stack the Deck" game to be updated after the win.
3 hours ago
The player Titus Stevens missed out on taking home nearly $65,000 over an easy puzzle.
1 day ago
Harvey couldn't control himself after hearing some of the answers.
1 day ago
The thrift store find turned out to be quite profitable for the seller named Kimberly.
2 days ago
The creator showed proof that the store jacked up the price of an item by $3 during a sale.
2 days ago
The contestant, Linda Rivera failed to crack a seemingly easy phrase in the finale.
3 days ago
Fans couldn't believe that the player chose to miss out on such a good opportunity.
3 days ago
Host Drew Carey had to point out how loud the viewers were before the emotional victory.
3 days ago
While the guest got a massive appraisal for her grandma's ring, she was clear on her stand.
4 days ago
While some blamed the tough puzzle, a few were disappointed with the player, Rob Schwandt.
4 days ago
The player was a bit too excited for the trip and so was her husband in the audience.
4 days ago
The player, Ashton Hildebrand when on to win the showcase for prizes worth over $52,000.
5 days ago
The guest, Jad managed to bring a deal back from the dead and get exactly the amount he asked for.
5 days ago
While some players played it safe, others destroyed their marriages on the show.
5 days ago
Harvey was sure tha the player, Darren didn't want to be on the show at all.
6 days ago
The unexpected collaboration aims to solve a long-standing home surveillance issue.
6 days ago
The co-founders of Y'all Sweet Tea blew away the Sharks with their incredible numbers.
6 days ago