This scam promises huge profits if you send your money “off shore” to another country.
How it works
A scammer convinces you that you’ll be able to avoid or lower your taxes by sending your money to an offshore holding. Once your money is sent off shore and is in someone else’s control, it may be impossible to track down your money and get it back. If the promised tax savings are fake, you could also end up owing the government money in back taxes, interest and penalties. When you move your money to another country, you are no longer protected by Canadian law. For example, if you use an offshore broker, you are not protected by the Canadian Investor Protection Fund if they go bankrupt. You will not have any recourse in Canadian court.
How to protect yourself
- Never move your money offshore without first verifying the authenticity of the person or company asking for it, and the opportunity being offered.
- Check that the individual and firm selling the investment are registered in New Brunswick. Use the National Registration Search Tool.
- Get as much written information as possible about the investment. It should include detail about the risks and costs of the investment, and what you have to do to get your money out.
- If you’re unsure, get a financial professional such as an accountant, lawyer, or a financial advisor to evaluate the investment.
How to report it
If you suspect you’re a victim of an offshore investment scam, or attempted offshore investment scam, complete the FCNB Submit a Complaint form.
FCNB administers and enforces legislation in the mortgage brokers, payday lenders, real estate, securities, insurance, pensions, credit unions, trust and loan companies, cooperatives, and a wide range of other consumer legislation. If your complaint relates to an area outside of FCNB’s regulated areas, we may refer you to the appropriate reporting agency or organization.