Bulletin – Fixed Income Investment Fraud
2025-02-06
The Canadian Anti‐Fraud Centre is receiving reports from Canadian based insurance companies and
financial institutions about brand spoofing fixed income investment fraud. Reporting suggests this is part
of a broader scam using multiple well-known company names and targeting investors across Canada
This fraud involves Canadians receiving fraudulent offers that appear to come from the actual companies
offering higher than normal returns on fixed income investment products such as Guaranteed
Investment Contracts (GIC) and saving bonds. Typically, these offers materialize after a consumer
searches for an investment opportunity online and enters their information into an “investment finder”
type ad. Consumer will then receive calls from the fraudulent operators claiming to be a legitimate
company and offering a high return fixed income opportunity.
For any investment opportunities, investors are urged to verify information by looking up the company’s
website directly and/or calling the company at the phone number listed on its website. Do not rely on
the website and phone number included in the unsolicited materials provided to you.
What is a GIC?
A Guaranteed Investment Contract (GIC) is a financial product normally between an investment and insurance company which guarantees a return. A GIC is normally used for retirement.
What is a Savings Bond?
A fixed income investment that allows you to earn a return on your investment by lending to the issuer for a period of time.
Warning Signs
- Investment opportunities with higher than normal returns.
- Beware of ads or websites that offer to assist with finding an investment.
- Beware of telephone, email or social media investment offers.
- Displays of urgency to make an investment, so you don’t miss out.
- Beware of spoofed domains that redirect you to a different website.
How to Protect Yourself
Before you put money into any investments you should:
- Check to see if the company or website are registered by visiting the Canadian Securities.
- Do your own research. Try to verify the investment opportunity with a credible source.
- Avoid putting yourself at risk. Providing your contact information such as your phone number and/or email address to unverified websites could result in fraudulent offers.
- Contact your provincial securities regulator to verify investment opportunities.
- Check investor alerts
Anyone who suspects they have been the target of cybercrime or fraud should report it to their local police and to the CAFC’s online reporting system or by phone at 1-888-495-8501.
