Scammers, unfortunately, are one group of people whose profession has allowed them to keep practicing while staying physically distant. The latest scam warning from the province of Saskatchewan comes to protect investors in particular from a suddenly-popular form of fraud. 

The Financial and Consumer Affairs Authority of Saskatchewan (FCAA) has said they're seeing a rise in foreign exchange (forex) scams targeting investors. These scams often involve speculating on the rise of a national currency relative to other currencies. 

Forex is legal and well-regulated in Saskatchewan but only registered dealers are allowed to conduct the trades. And according to the FCAA, the complexity of this type of trading, and the volatility of it, make it prime territory for fraudsters. 

“You should always check to see if the person or company offering the investment is registered,” FCAA Director of Enforcement Harvey White said. “The Canadian Securities Administrators’ National Registration Search (https://www.securities-administrators.ca/nrs/nrsearchprep.aspx) is a free tool that investors can use to check registrations as only registered dealers can sell Forex products. Additionally, Forex trading is a complex, volatile, and high-risk investment. If you don’t fully understand the risks, don’t get involved.”

As with many scams, the province reminded people if something seems too good to be true, it likely is. If someone is offering a guarantee of little or no risk, and high investment returns, that is a huge potential red flag.

Other signs that an investment opportunity may not be on the level include dealers that are not registered with the FCAA, an unwillingness to discuss the past performance or track record of the specialist traders who will handle their money, and a high-pressure sales technique. 

The FCAA recommends you check the registration of the person or company selling or advising about securities or derivatives. To check registration visit The Canadian Securities Administrators’ National Registration Search (https://www.securities-administrators.ca/nrs/nrsearchprep.aspx). You can also check any disciplinary history they may have byy using the Canadian Securities Administrators’ Cease Trade Orders database (https://cto-iov.csa-acvm.ca/SearchArticles.asp?)

If you have been contacted by someone offering a Forex investing opportunity or any investment that may be fraudulent, contact the FCAA’s Securities Division at 306-787-5936.