The BC Securities Commission (BCSC) has launched an updated Investment Caution List (ICL) as part of its intensified efforts to protect the public and combat the escalating threat of online investment fraud.

The list, which is constantly being updated, warns British Columbians about companies and individuals that may pose a risk to the public and that may be located in B.C. or accept B.C. residents as customers. Names are added to the list when they display one or more of the following characteristics: 

• They are not registered to provide investment services or investment opportunities 
• They are promoting investments that show signs of fraud 
• They impersonate legitimate, authorized firms, or use names similar to such firms. 

As online investment fraud – often originating from outside Canada – has exploded in frequency, the BCSC expanded its criteria for including entities on the ICL. The list now includes any known aliases of entries and features clearer, plain-language explanations and information like the “red flags” of fraudulent investment schemes.

“If one of the names on the list tries to sell you an investment or asks for money, immediately report it to the BCSC,” said Doug Muir, the BCSC’s Director of Enforcement. “There is a risk of losing your entire investment, and the sooner we know about it, the better the chance that we can protect others from falling for it.”

In addition to taking complaints from the public, the BCSC provides investors with resources about how to protect themselves from investment fraud and help verify whether an individual or company is authorized to do business with B.C. residents.

The ICL is just one of the tools that the BCSC uses to disrupt online investment fraud. Other measures include:

• Requesting the removal of suspicious websites and achieving 66 removals this year
• Collaborating with other regulators and law enforcement agencies – in Canada and abroad – on joint efforts to protect investors and deter fraudsters from exploiting British Columbians
• Working with the private sector on innovative ways to leverage their knowledge and expertise to reduce victimization
• Communicating with registered crypto trading platforms and financial institutions on how to prevent harm to their clients
• Alerting payment processors that they could be unknowingly handling proceeds of investment fraud
• Issuing investor alerts about recently surfaced schemes that may pose a new, imminent risk to the public
• Providing information through our investor education website, InvestRight.org, so people have the knowledge they need to identify and avoid online investment fraud, including specific scams involving artificial intelligence and cryptocurrency.

Last year, British Columbians reported losses of $46.4 million from online investment scams to the Canadian Anti-Fraud Centre (CAFC) – twice as much as the previous year. The real cost is likely much higher because the CAFC estimates that only five per cent of fraud victims report such incidents to authorities.