Waterloo Regional Police say they are investigating a recent online investment fraud that resulted in the loss of a whopping $800,000.
On March 12, police say they received a report of a victim defrauded through an online investment scam.
The victim, in Waterloo, had viewed a video promising high returns with a short turnaround time.
The video used artificial intelligence (AI) to make it appear the investment was endorsed by U.S. billionaire Elon Musk and encouraged viewers to call a provided phone number, according to police.
After the victim registered by calling the number, he was contacted by someone claiming to be from an investment firm.
The person 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.
Police said between January and March, this person accessed the victim’s bank accounts and transferred more than $800,000 that the victim was led to believe was being invested.
To top it off, when the victim asked 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, police said in a news release.
Police said that in 2023, more than $60 million in financial losses were reported to the Waterloo Regional Police Service – a large portion of which was the result of investment fraud, police say.
"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," police warned.
Members of the public are advised to be cautious when it comes to possible scams.
They are advised to #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 victimized in an investment scam and suffered a financial loss, you are urged to report the incident online at www.wrps.on.ca/onlinereporting or call the police non-emergency number at 519-570-9777.
If you were contacted about this type of scam but did not experience a financial loss, you are still asked to help investigators by contacting 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).
