How these scams work — and why they’re so dangerous
Scammers are getting better at sounding real. They may reach out on social media or through email, or even get introduced through someone you know (who may not realize they’ve been scammed, too).
The fraudster builds trust slowly, showing fake “returns,” using slick websites and tossing around financial jargon. But the end game is always the same: get your money, then disappear.
“It’s not uncommon for scammers to lure in victims with small payouts to build confidence,” OPP Const. Steven Duguay told CTV News. “But when people ask to withdraw large amounts or all of their funds, the fraudster vanishes.”
That’s exactly what happened in Leamington, and once the scammer was gone, there was no way to get the money back.
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Get started todayHow to spot a scam before it’s too late
Here are a few red flags to watch out for:
- Too-good-to-be-true returns: If someone promises high profits with little or no risk, it’s likely a scam
- Unregistered investment platforms: If it’s not listed with the Canadian Securities Administrators or the Ontario Securities Commission, walk away
- High pressure: If they’re pushing you to invest “before it’s too late,” that’s a tactic to keep you from doing your homework
- Untraceable payments: If you’re asked to send money via cryptocurrency, wire transfer or prepaid gift cards, that's a huge red flag
Want to double-check an offer? The Canadian Anti-Fraud Centre (https://www.antifraudcentre-centreantifraude.ca/index-eng.htm) has a list of known scams and a toll-free number you can call at 1-888-495-8501.
What to do if you’ve been scammed
If you’ve already sent money and think it might be a scam, act fast:
- Stop all contact with the person or platform
- Report the fraud to your local police and the Canadian Anti-Fraud Centre
- Let your bank or credit card provider know what happened. They may be able to help recover or freeze funds
- Document everything — emails, screenshots, transaction records
- Talk to a lawyer or financial advisor if the amount was significant
It can feel embarrassing, but scams are designed to fool people — smart people, too. You’re not alone, and help is available.
Sources
1. CTV News: Leamington resident loses $109,000 in Ponzi-style fraud (May 9, 2025)
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Get 100 free online equity trades with promo code EDGE100 when you open a CIBC Investor’s Edge account by Sept. 30, 2025. Click here to unlock 100 free trades and take control of your investments. Get started today.
