[ad_1] Albertans who may have fallen victim to investment fraud are being warned people could be posing as staff with the Alberta Securities Commission (ASC), as the regulator cautions of the dangers of “recovery room” scams. The commission issued the warning Tuesday, advising the public to be wary of unsolicited communications from individuals claiming to be from the ASC. The agency, responsible for administering the province’s securities laws, said it has received recent complaints of victims being contacted by a person claiming to work for the regulator. “In each instance, the person who received the call had previously lost money in an offshore crypto-related investment,” the ASC said in Tuesday’s alert. “We believe that the individuals claiming to be ASC staff may be operating a recovery room scam, in an attempt to re-victimize investors who have already lost money.” Cynthia Campbell, director of enforcement at the commission, said that, generally speaking, recovery room scams take shape in two forms. One is through online advertisements offering to help people who have been victimized in different scams, including online versions. Another involves scammers reaching out directly to those who have already lost investments, offering to help recover the funds. “And the reality is, in these types of scams, it’s typically the same fraudsters who are running the original scam,” Campbell said in interview. “That’s how they have the victim’s contact information. And that’s how they know they’ve been defrauded.” Campbell said they are seeing more incidents of people impersonating legitimate companies, regulators or other institutions. “It is horrible,” she added. “Many of the victims we see have been depleted of everything they have, but in the hope of trying to recover it, they will borrow money to try to pay these fees to the recovery room.” Cryptocurrency protection tips as scammers bilked $22.5M from Calgarians this year Calgary Police Staff Sergeant Graeme Smiley and Univeristy of Calgary’s Alfred Lehar talk cryptocurrency scams and how you can better protect yourself. As part of Tuesday’s warning, the agency stressed it will never ask the public to send money, nor would it promote companies that claim to recover funds from scams. The regulator said it also would not make unsolicited calls or send texts, messages or emails asking for payment or banking information related to enforcement actions or investigations. Campbell said tips on how to identify and avoid investment fraud can be found on the ASC’s checkfirst.ca website. “If someone receives unsolicited contact from someone who says they’re from the Alberta Securities Commission or another agency, they should verify that information,” Campbell added. She advised to get the person’s name, phone number and email address, then contact the agency to ensure the person actually works there. “People across Canada are being victimized every day,“ she said. “If someone thinks they’ve been the victim of an investment fraud, we really encourage people to report it to the ASC. We may not be able to help you get your money back, but you can help us prevent other people from being victimized.” Campbell said regulators have seen “an explosive growth” in online investment scams over the past few years. These can include scam websites, social media ads or even dating apps. In October, Calgary police said residents had lost more than $22.5 million from 340 reported cryptocurrency scams so far in 2023, with many people lured in by the false prospect of high returns. Earlier this year, the Canadian Anti-Fraud Centre also warned people of unsolicited scam calls. Its data shows that last year there were 849 reported victims of scam calls in Alberta, totalling more than $5.4 million. The most commonly reported fraud calls to Albertans were related to offers for services or bank investigations. [ad_2] Source link Post navigation What to know before rolling money from a 401(k) to IRA What Is Buying Power In Investing?