The B.C. Securities Commission says its updated Investment Caution List is aimed at protecting the public from online investment fraud.
Investment is always risky, but now there’s a new list to warn potential investors about which companies might pose a threat.
What is the Investment Caution List?
The list, which is constantly being updated, warns people about risky companies may be located in B.C. or accept B.C. residents as customers.
Who’s included on the list?
Names are added to the list when they display one or more of the following characteristics:
• They are not registered to provide investment services or investment opportunities
• They are promoting investments that show signs of fraud
• They impersonate legitimate, authorized firms, or use names similar to such firms
What should I do if I encounter one of these companies?
Doug Muir, the commission’s director of enforcement, says if one of the names on the list tries to sell anyone an investment or asks for money, immediately report it to the commission.
“There is a risk of losing your entire investment, and the sooner we know about it, the better the chance that we can protect others from falling for it,” he said in a statement Wednesday.
How else can I protect my investments?
In addition to taking complaints from the public, the commission provides investors with resources about how to protect themselves from investment fraud and help verify whether an individual or company is authorized to do business with B.C. residents.
Last year, B.C. residents reported losses of $46.4 million from online investment scams to the Canadian Anti-Fraud Centre — twice as much as the previous year.
Muir said the actual loss is likely much higher because many fraud victims don’t report the crime to authorities.