Submitted by nsscadmin on
The principal mandate of the Nova Scotia Securities Commission (NSSC) is to protect Nova Scotia investors. One of the ways we do that is by issuing investor alerts and cautions. You can find all the alerts and cautions we’ve issued for the last eight years on our Investor Alert Database.
To create further awareness concerning the companies and people we have issued alerts and cautions about, our Before You Invest Blog regularly reviews alerts and cautions throughout the year. We also do a full-year review, which is what this post will provide. The review looks back at all the alerts and cautions we issued in 2024.
Investor Alerts are warnings that the NSSC or the Canadian Securities Administrators (CSA) has conducted investigatory work and has reason to believe that the individuals’ or entities’ activities or schemes appear to violate Nova Scotia securities laws and may pose imminent risk of harm to Nova Scotian investors. Potential Investors should avoid these investment opportunities.
2024 Investor Alerts Issued by the NSSC and the CSA
Canadian securities regulators warn registrants about impersonation scam
The CSA is warning registrants of an email impersonating CSA Chair and Chair and CEO of the Alberta Securities Commission, Stan Magidson. The emails are believed to be malicious “spear phishing” attempts by unknown individuals who are trying to obtain personal information or confidential business information.
Canadians urged to remain vigilant in the face of rising investment fraud
To mark Fraud Prevention Month, the CSA reminded Canadians to remain vigilant about potential investment scams and misleading advice. While online financial advice is readily available, the CSA encourages investors to verify information sources and work with registered professionals to reduce the risk of becoming victims of fraud.
Nova Scotians continue to lose considerable amounts of money to fraudulent crypto trading websites. The Nova Scotia Securities Commission has issued several warnings about fraudulent crypto trading websites and the red flags of crypto-related fraud. For Fraud Prevention Month in March, the Commission used a new investor education tactic by launching its own fake crypto trading website – NovaCrypto.ca.
The CSA, the Canadian Investment Regulatory Organization, and the Ombudsman for Banking Services and Investments reminded investors that they all offer investors services related to claims or complaints free of charge. This means it is not necessary for investors to use a claims management company to interact with a regulator or oversight organization in a claim or complaint process
In recognition of World Elder Abuse Awareness Day, the CSA urged older adults, and their loved ones, to remain vigilant in the face of growing online financial elder abuse and to remember the importance of naming a Trusted Contact Person.
Canadian seniors are being targeted with sophisticated online scams. Older adults can often be the target of financial scams. Scam artists take advantage of those who may be socially isolated or have diminished capacity and who have accumulated savings over time. Advancements in technology, like artificial intelligence (AI), have created new avenues for criminals to exploit these vulnerabilities and deceive victims. AI voice cloning allows scammers to impersonate family members or friends in urgent need of money. AI can also be used to easily manipulate images and videos, known as deepfakes, to create credible personas on dating sites and social media along with fake celebrity endorsement ads.
Investor Alert: Fraudulent social media “investment groups” take advantage of unsuspecting investors
The CSA warns Canadians about fraudulent “investment groups” promoted on social media like Facebook and Instagram. These groups could be running a scam called a “pump and dump.”
CSA encourages Canadians to have the “money talk” to prevent financial abuse
In recognition of Financial Literacy Month’s theme “Money on your Mind? Talk about it.”, the CSA urged Canadians to talk openly about financial plans and goals with family members and loved ones to help prevent financial abuse
2024 Investor Cautions Issued by the NSSC
Investor Cautions are warnings to potential investors that the individuals or entities named do not appear to be registered to engage in the business of offering securities or derivatives in Nova Scotia or that the investment products do not appear to be offered in a manner permitted by Nova Scotia securities laws. Visit our Investor Cautions List for more information on the entities listed below.
Trade Galactica
Invictet
necosmart
Meta Bank Wallet/Meta Bank
Reltex Group/Reltex group
Mayrsson TG
TLG Corp Limited / TLG/ TLG Group
Magnum Holdings / Magnum Holdings Limited
Seven Seas/Seven Seas Exchange/Seven Sea Crypto *Please note this is not to be confused with "Seven Seas Capital Management Inc."
Call4trade / Call 4 Trade
Tesla SpaceX Investments
Canadian Capital Markets
AvaTrade / Avatrade
Valiant Markets
FXT Trades/ FXT Trades Investment
HQTA
SMT Capital/SMT Capital Limited/SMT Capital Ltd./SMT Capital Trading
LMAX International / LMAX International Group / LMAX International Ltd / LMAX International UK Ltd / LMAX International Europe Ltd / LMAX International South Africa (Pty) Ltd / LMAX International Asia Ltd