Alberta RCMP Warns Against Binary Option Scams
Every year, thousands of Albertans fall victim to fraud, losing millions of dollars. While many believe it could never happen to them, fraudsters continue to use increasingly sophisticated tactics to target people of all ages. In 2016 alone, 8,317 cases of fraud were reported within Alberta RCMP jurisdictions from January to October.
Common Scams in Alberta
Among the most prevalent scams in Canada during 2016 were:
Romance Scams: Fraudsters steal photos and create fake profiles on dating sites and social media, luring potential victims into sending money for fabricated reasons.
Wire Fraud Scams: These scams target the financial industry, where fraudsters impersonate clients through fraudulent emails to deceive financial institutions and investment brokers.
Investment Scams: These involve false or deceptive investment opportunities that promise higher-than-normal returns. Victims often lose most or all of their money.
Merchandise Scams: Fraudulent websites sell counterfeit goods from known retailers at discounted prices, attracting online buyers with “limited-time-only” sales.
“Fraud has a devastating impact on individuals, families, businesses, and our economy,” said Inspector K.C.A. (Allan) Lai, Acting Officer-in-Charge of RCMP “K” Division Federal Policing for Southern Alberta. “The best way to fight these crimes is through awareness because the more you know about a scam, the less likely you are to be victimized. Albertans should immediately report any incident to the appropriate authorities.”
The Rising Threat of Binary Option Scams
Recently, scammers have increasingly targeted Canadians and Albertans with binary option scams. According to the Alberta Securities Commission (ASC), victims of binary options scams in Alberta lose an average of more than $20,000. These scams operate similarly to gambling, where “bets” are placed on how an asset—such as a stock, currency, or commodity—will perform within a specific timeframe. The outcome is all or nothing, making it a high-risk and often devastating scam.
Binary options are typically offered online, with websites designed to appear legitimate. They entice users with promises of high returns and minimal risk, but in reality, the potential for loss is significant.
Albertans should be aware that companies offering securities in Canada must be registered in the province where they operate. Currently, no registered binary options dealers are operating in Alberta.
Protect Yourself from Binary Scams
The Alberta Securities Commission (ASC) provides the following tips to help protect you from binary scams:
Be cautious when asked to provide personal information and credit card details over the phone or online.
Conduct thorough research on any investment opportunity and seek the advice of an independent third party before making decisions.
Request detailed information on the investment and verify the registration and enforcement history of the company.
Visit www.aretheyregistered.ca, a resource from the Canadian Securities Administrator (CSA), to verify the legitimacy of an investment opportunity.
If you or someone you know has been approached by a binary options company or believe you have been the target of a securities scam, you can:
Contact the Alberta Securities Commission at (877) 355-4488 (toll-free) or inquiries@asc.ca.
Contact the Canadian Anti-Fraud Centre at 1-888-495-8501 or report online at www.antifraudcentre.ca.
Staying informed and vigilant is key to protecting yourself and others from falling victim to these dangerous scams.
