The Alberta Securities Commission announced March 30 that it has launched a multi-media campaign to raise awareness of spoofed and cloned websites of legitimate registered investment firms.
The act of "cloning" or "spoofing" involves fraudsters creating a website that imitates or closely resembles a legitimate registered investment firm's website and information, most often unbeknownst to them, explains the regulator. To educate investors, the ASC’s campaign features an interactive spoof website that highlights several tell-tale signs of fraud.
"We've seen an increase in the number of scams using professional-looking websites that impersonate legitimate firms," stated Hilary McMeekin, Director, Communications and Investor Education with the ASC. "We created a new tool to help investors, and all Albertans can now use our spoof website to safely explore common red flags. The site also provides key steps they can take to verify the legitimacy and registration of any investment firm found online or marketed through pop-up ads."
The ASC provided some tips to help avoid being the victim of financial fraud:
- Be suspicious of any unsolicited investment offers made online, on social media or over the phone, especially if they require payment in bitcoin or other digital assets. Remain cautious even if you may have initiated contact with the firm.
- Be mindful of the red flags of cloned/spoofed websites and duplicate websites for firms found through pop-up ads and internet searches.
- Always check the registration of any firm you are interested in working with. Securities law requires all investment industry professionals and firms be registered in the province you reside in.
- Only contact the number listed on the firm's registration found in the Alberta-based registrant list on the ASC website if based in Alberta, or the National Registration Search provided by the Canadian Securities Administrators. This will ensure you contact the legitimate firm.
