Province warns of online investment scam

Binary Options firm lures targets with Internet ads that feature the unauthorized likeness of well-known Canadian celebrities, with a promise of a large financial return. (File Image)

The Manitoba Securities Commission is warning the public of an online investment scam, after a Manitoba couple was scammed out of thousands of dollars.

Binary Options firm lures targets with Internet ads that feature the unauthorized likeness of well-known Canadian celebrities, with a promise of a large financial return.

The company places advertisements on internet websites, where targets are then redirected to www.wmoption.com.

Victims of this scam invested money via credit card and wire transfer over a period of nine months, and were led to believe that their investments were profitable and accessible.

They were then made aware of the fraud when an unknown company began making unauthorized charges on their credit card.

The couple was also unable to access or withdraw funds from their account.

“Many of the Binary Options fraud sites we see are very professional in appearance,” says Jason Roy, senior investigator with MSC, and chair of the Canadian Securities Administrators’ (CSA) Binary Options Fraud Task Force in a release. “It could be easy to think you’re dealing with a legitimate company, but there are many red flags if you know where and how to look.”

Binary Options is described by the Manitoba Securities Commission as more of a wager, rather than an investment. Investors bet on an underlying asset, often a currency, stock index or share. No actual trading takes place.

“It’s just a tactic used to steal an investor’s money. Once they have your money, it’s extremely unlikely it can be recovered,” says the release.

In 2015, there were four complaints from Manitobans about various unregistered Binary Options firms. In 2016, that number rose to 58, with similar numbers on track for 2017.

In March, CSA launched www.binaryoptionsfraud.ca to inform Canadians on the risks of Binary Options trading.

There are currently no Binary Options firms registered to sell securities anywhere in Canada.

Investors who believe they have been approached by an unregistered individual or firm are encouraged to contact MSC immediately at 1-855-FRAUD-MB to file a complaint or speak with an investigator.