Consumer Bulletins

Consumer Bulletin: Understanding Fraud Protection

What you need to know

Financial fraud is rising – we all see reports of it every day in the news and our social media feeds, but it can be difficult to appreciate the risks and impacts of fraud when we have not had first-hand experience. It is important for everyone to understand how financial frauds take place and how to remain vigilant for ourselves and our loved ones. Opting out of financial services is not possible – these services are an essential part of managing our money and securing our financial...

Consumer Bulletin: Cryptocurrency scams increasingly targeting and exploiting Canadians

Scammers exploiting public interest in crypto investing

A growing number of Canadians are interested in investing in new categories, such as cryptocurrency, but these emerging technologies and platforms are unfamiliar to most investors, giving fraudsters the advantage when they are looking for people to target. According to the RCMP, fraud involving cryptocurrency rose 400 per cent between 2017 and 2020. What had been hundreds of cases (734) in 2017 jumped to thousands of cases (7,598) in the first...

Consumer Bulletin: Be aware of the risks of DIY investing

More Canadians are choosing to be self-directed or do-it-yourself (DIY) investors than ever before. In 2020, over two million new DIY accounts were opened in Canada - more than double the amount opened in 2019. This represents an unprecedented rise in the number of Canadians who trade securities on their own using the services of an order-execution-only (OEO) firm. A key feature of OEO firms is that they provide investors with access to trading platforms but do not provide investors with...

Consumer Bulletin: Take care when considering mutual funds with DSCs

Last updated: Monday May 10, 2021

Deferred sales charges (DSCs) are fees that mutual fund investors pay to the mutual fund company if they sell the mutual fund within a certain time after purchasing it. All mutual funds have fees and there are many ways that these fees can be structured. Not all mutual funds have DSCs, but many do. The amount the investor must pay when they sell a mutual fund with DSCs declines over time and typically reaches zero after five to seven years. This is an example of...

Consumer Bulletin: Sometimes fraudsters are people we know

Canadians have good reason to fear getting scammed.

Nearly a quarter of the banking cases OBSI received in 2020 were related to fraud, making it the most reported banking issue of the year. According to the Canadian Anti-fraud Centre, fraud is on the rise. In 2020, Canadians lost $106.4 million to fraud compared to $96 million in 2019.

Many of these frauds and scams are perpetrated by criminals hiding behind false identities on the internet, and it seems these fraudsters are always figuring out new...