Investment fraud is now the biggest source of fraud losses in Canada. Canadians reported losing $704 million to fraud in 2025, the most on record, and investment fraud accounted for $351 million of it. And those are only the reported cases. The Canadian Anti-Fraud Centre estimates that only 5% to 10% of fraud is ever reported.
Forex and crypto are at the centre of a lot of it, because they sound sophisticated, they’re hard for outsiders to check, and money moves quickly. Here are the scams I see most, the red flags that give them away, and how to check any firm before you send it a dollar.
Where most scams start: Instagram and social media
The biggest scams I see usually start on Instagram, with fake gurus and content creators. The pattern is familiar: a luxury car, a beach, a screenshot of a huge winning trade, and a message that you can do this too.
The data backs this up. The Canadian Securities Administrators found that 46% of Canadians encounter investment opportunities on social media, and social media has become the main channel for reaching younger investors.
Here’s a simple test. Real traders spend most of their time trading, not producing content. That doesn’t mean everyone who posts about trading is a scammer; plenty of legitimate educators, this site included, publish content. But when someone’s main activity is showing off results rather than explaining how they manage risk, ask where their money really comes from.
The scams to know about
Fake gurus and signal groups. Pay for a course or a VIP group, get “guaranteed” signals. Results shown are often from demo accounts or cherry-picked. Some groups exist mainly to earn referral fees from offshore brokers.
Fake account managers. Someone offers to trade your money for you, promising fixed monthly returns. You deposit with a broker they recommend, or send money directly. The returns look great on a dashboard until you try to withdraw.
Fake trading platforms. A professional-looking website or app shows your balance growing. It isn’t real. The money was taken the moment you deposited, and the “profits” are numbers on a screen. When you ask to withdraw, you’re told to pay a “tax” or “release fee” first.
Deepfake celebrity ads. AI-generated videos of politicians and public figures “recommending” an investment platform. Canadians have been targeted with fake videos of the Prime Minister and former cabinet ministers. One Ontario couple lost their life savings of $42,600 after watching a deepfake of a former finance minister.
Recovery scams. After someone has been scammed, they’re contacted by a “recovery service” or a fake law firm or regulator promising to get their money back, for an upfront fee. It’s the same scammers, or their partners, coming back for more.
Pump-and-dump promotions. Coordinated social media hype pushes up the price of a thinly traded asset, the promoters sell, and everyone who bought late is left with losses.
The red flags
These are the warning signs I tell students to watch for. Any one of them is reason to stop and check. Several together is reason to walk away.
- Guaranteed or fixed returns. No legitimate trader can promise a monthly return.
- Pressure to act fast. “Only three spots left,” “offer ends tonight.”
- Unsolicited contact. A stranger messages you about an opportunity, or adds you to a group.
- Requests to move money unusual ways: crypto, gift cards, wire transfers to individuals.
- Requests to install remote-access software on your computer or phone.
- Fees to withdraw your own money.
- Results you can’t verify: screenshots instead of broker statements.
- A firm that isn’t registered in Canada but is soliciting Canadians.
- Promoted by a celebrity or politician in an ad. Real ones don’t do this.
If it sounds too good to be true, treat it that way. The same instinct applies to trading courses; our course vetting checklist covers what to ask an educator.
How to verify a firm or a person
Before you send money to any broker, adviser, or account manager, check them yourself. It takes a few minutes.
- Search the national registry. The Canadian Securities Administrators’ National Registration Search, at aretheyregistered.ca, shows whether a firm or individual is registered to deal with Canadian investors.
- Check CIRO membership for brokers. Our guide to CIRO-regulated vs offshore brokers explains what that protects.
- Check investor warnings. Provincial regulators, including the Ontario Securities Commission, publish warnings and alerts about firms operating without registration.
- Confirm the website is real. Scam sites often copy the look and name of legitimate firms. Type the address yourself rather than clicking ads.
- Ask for verifiable track records. Real broker statements, not screenshots.
If you’re looking at a prop firm rather than a broker, the checks are different, because most prop firms aren’t registered dealers. Our guide to whether prop firms are legal in Canada covers what to verify. For the basics of how forex is regulated here, see is forex trading legal in Canada.
If you’ve been scammed
It happens to smart people, and it’s nothing to be ashamed of. What matters is acting quickly:
- Stop sending money, including any “fees” to release your funds.
- Contact your bank or card issuer right away. Sometimes transactions can be stopped or reversed.
- Report it to your local police and to the Canadian Anti-Fraud Centre. They’re separate reports, and both help.
- Report the account or ad to the social media platform where you found it.
- Be very wary of anyone offering to recover your money for a fee. That’s often the next scam.
The bottom line
Most forex and crypto scams in Canada start on social media, with fake gurus, deepfake ads, and “account managers” promising returns no real trader can guarantee. Watch for the red flags, check registration before you send money, and be most suspicious of anything that pressures you to move quickly. Real traders don’t need to convince strangers on Instagram to give them money. As we wrote in free vs paid trading courses: look for people who are transparent about how they make their money.
Disclosure: The author, Mike Harding, founded Academy of Financial Markets in Toronto and teaches its mentorship program. Fraud figures are as reported by the Canadian Anti-Fraud Centre and other cited sources. This article is general information, not legal or financial advice.