The Nova Scotia Securities Commission wants Nova Scotians to know there has been an increase in scams targeting investors related to Forex.
Forex investing, which includes speculating on the change in value of one currency against another, is legal and regulated in the province if done through licensed dealers.
However, due to its complexity and volatility, it can be used by fraudsters to mislead unsuspecting investors into believing a scheme is a legitimate and lucrative investment.
Some of the warning signs of a fraudulent Forex investment include a guarantee of little or no risk, and high investment returns, dealers or brokers who are not registered with a provincial or territorial securities commission, and an unwillingness to discuss the past performance or track record of the specialist traders who will handle money.
“The commission and other provincial and territorial securities regulators in Canada have seen a rapid increase in Forex-related scams online in the past few months,” said Stephanie Atkinson, acting director of enforcement for the Nova Scotia Securities Commission. “The Commission issued our latest alert about a Forex-related scam just last week. The scams are being offered on social media, online forums and sites like Reddit and Kijiji, targeting investors with promises of high returns. If you do invest in Forex, you need to know that it is a complex, volatile and extremely risky investment. Do not invest more than you can afford to lose."
