The Investment Industry Regulatory Organization of Canada (IIROC) issued a warning on Aug. 27 cautioning investors against fraudsters claiming to be legitimate investment firms. 

The regulator says investors have recently contacted it asking about companies that claim to be regulated by IIROC or improperly using IIROC's name to deceive and gain legitimacy with investors, including companies doing business as: Bond Wealth Limited and Koorbit Company Limited. 

“The companies lure investors with promises of quick profits in cryptocurrency trading. When investors try to withdraw their investments, they are asked to pay capital gains taxes before releasing funds. In Canada, investment firms are not involved in collecting or paying capital gains taxes on behalf of investors. Any company asking for payment to release funds is likely fraudulent,” stated IIROC. 

Victims of this type of scam should contact their local securities regulator, says IIROC. 

Investors can verify an investment firm's registration on IIROC’s website. They can also check the background, qualifications, and disciplinary history of investment advisors registered with IIROC through its AdvisorReport.