Investor Alert: Fraudsters impersonating CIRO-registered firms on social media

Be an informed investor - Protect yourself against fraudulent schemes

June 4, 2026 (Toronto, Ontario) - The Canadian Investment Regulatory Organization (CIRO) is warning investors about fraudsters impersonating CIRO-registered firms in social media advertisements.

Scammers are posting ads on Facebook, Instagram and other social media platforms encouraging investors to join fraudulent stock investment clubs from pages impersonating regulated firms. Fraudsters may claim to be regulated in Canada, and may add false disclaimers to make their ads appear legitimate. After responding to an ad, fraudsters typically direct investors to join a WhatsApp group, where they use high-pressure tactics to encourage victims to purchase specific stocks as part of a "ramp and dump" scam.

While CIRO-registered firms may advertise on social media, self-directed brokers are prohibited from recommending specific stocks in ads, and all registered firms are prohibited from guaranteeing investment performance.

To Protect Yourself Against Fraud:

• Use caution when responding to ads on social media.
• Check whether the account posting an ad is impersonating a regulated firm.
• Be skeptical of any claims that seem too good to be true.

CIRO remains committed to protecting investors and providing resources to address fraudulent activities. For more information on identifying and reporting scams, visit the CIRO website.

Please note that investors can confirm with CIRO's Complaints & Inquiries team to verify the legitimacy of anyone claiming to represent CIRO. All individuals and firms registered to offer financial advice in Canada are listed on the National Registration Search of the Canadian Securities Administrators (CSA).

CIRO's Office of the Investor provides resources to help Canadians avoid investment fraud and protect their financial well-being. See Avoiding Fraud and Protecting Your Investments on CIRO's website for additional information.

If you believe you have been a victim of this or a similar scam, immediately contact your bank, local police, your provincial securities commission, and the Canadian Anti-Fraud Centre. If there are claims of CIRO regulation or the fraudster claims to work for CIRO, please also report it to CIRO.

For media inquiries only:

Ariel Visconti
Corporate Communications and Public Affairs
Canadian Investment Regulatory Organization
Telephone: 416-526-8240
Email: [email protected]

Please direct all other inquiries to our Complaints & Inquiries team:

1-877-442-4322 (Canada/US),
800-555-2323 (Outside Canada/US),
or by completing our Secure Contact Form