Quebec securities regulators say a cybersurveillance team has uncovered online ads offering investments in a foreign mining project that promises significant guaranteed returns.
The Autorité des marchés financiers says that the scheme was pitched as being for sophisticated investors prepared to invest a minimum of $150,000 and “involved the operation of a network of small well-established operators in Africa who were purportedly able to supply a gold purchasing program in the Arab countries.”
It warns investors thinking about investing in a mining company that they must understand the nature and related risks of the mining industry. And, it stresses that offering investments is a regulated activity. “To make sure you don’t become a victim, check whether the individual or business is registered,” it says, adding that any one who has been targeted by a scam should contact the regulator.
In this case, the AMF reports that the ads in question were uncovered by its cybersurveillance team, which aims to detect these sorts of offers and have them quickly removed, reducing the risk of creating new victims; and, allows it to identify the emergence of new strategies so that it can quickly warn the public about them. The unit has been operation since 2010.
The AMF says that its dedicated cybersurveillance team, made up of four investigators, uses specialized software programs to uncover individuals and businesses that offer unauthorized financial products, and to monitor websites for suspicious activity. “Depending on circumstances, these investigators are able to infiltrate operations and enable the AMF to file cease trade and freeze orders with the Bureau de décision et de révision in order to alert the public and protect assets in the course of investigations,” it notes.