Yet another reminder to be cautious when asked to provide personal information and credit card details over the phone and internet, especially when it comes to an investment opportunity.
 
Scammers most recently have been targeting Albertans using binary options scams.
 
Alberta RCMP are asking you to do your due diligence, research an investment opportunity, seek the council of an independent third party and prior to investing, ask for information on the investment, checking the registration and enforcement history.
 
Similar to gambling, binary options work much like a wager, all or nothing bets are invested based on how an asset, like a stock, currency or commodity will perform within a certain timeframe.
 
The scam is usually offered online, binary options websites are designed to look legitimate, enticing users with promises of high rates of return and very low risk.
 
Albertans who fall victim to binary options scams lose, on average, more than $20,000.

More than 8,000 cases of fraud were reported in our province last year in a 10 month period.

The most common scams according to the RCMP in 2016 included:

  • Romance scams: Fraudsters steal photos and use dating sites and social media to lure potential victims into sending money for various reasons.
  • Wire Fraud scams: Financial industry wire fraud occurs when Canadian financial institutions and investment brokers receive fraudulent email requests from who they believe to be an existing client.
  • Investments scams: An investment scam is any solicitation (telephone, mail, email, etc.) for investments into false, deceptive or misleading investment opportunities, often referring to higher than normal or true monetary returns which consumers lose most or all of their money.
  • Merchandise scams: Involves deceptive websites selling counterfeit goods from existing retailers at discounted prices. They use the concept of a limited, one-time-only sale to attract online buyers.