Fraudsters are getting bolder and more sophisticated. Across Canada, regulators are seeing a surge in ramp‑and‑dump scams, a new twist on pump-and-dump scams. In the end, scammers walk away with profits, and everyday investors are left with losses.

If you use messaging apps like WhatsApp, Discord or Telegram, or spend time on platforms such as Instagram or Facebook, you may have already come across a ramp-and-dump scam. These scams often begin with an ordinary‑looking message or conversation that doesn’t seem connected to investing at all. But over time, that interaction quietly shifts into a pitch for a so‑called can’t‑miss investment opportunity.

Below, we break down how these schemes work and how you can protect yourself.

 

What is a ramp-and-dump scam?

Ramp‑and‑dump scams involve coordinated attempts to artificially inflate the price of a low‑priced stock or a small or newly listed company. The people behind the scheme already own a significant amount of the stock and work together to gradually push the price higher. From the outside, it can look like the company is gaining real traction, especially if the price increases steadily and without obvious hype.

At the same time, through private messages, group chats, or ongoing online conversations, individuals reach out directly to unsuspecting victims to introduce the opportunity and convince them to buy in. The investment may be framed as early access, insider knowledge, or a tip that only a few people are aware of.

But once the price hits their target, the scammers sell their shares. The stock collapses. The group chat disappears. Victims are left with steep losses.

 

How is a ramp-and-dump different from a pump-and-dump?

Traditional pump‑and‑dump scams rely on loud promotion and urgency. They often involve bold claims, viral posts, or widespread messages encouraging investors to act quickly. Prices tend to spike sharply and then collapse just as fast.

Ramp-and-dump schemes take a quieter approach and scammers work to build trust with their victims. Instead of mass promotion, the investment idea is shared through direct messages or small, private groups. The price increase is usually slower and more controlled, sometimes unfolding over days, weeks or months, to make it look more legit.

 

How these scams typically unfold

While ramp‑and‑dump schemes can vary, regulators are seeing a common pattern emerge. They often begin with an initial contact, a friendly message, a “wrong number,” or a casual online conversation. Over time, scammers may try to build rapport, sometimes even posing as a friend or romantic interest.

Once trust is established, victims are often invited to join a private investment group or group chat on platforms like WhatsApp, Discord, or Telegram. These groups are presented as exclusive spaces where members supposedly share tips and market insights.

Scammers portray themselves as experts, share charts or confident predictions, and encourage members to buy a specific stock before it “takes off.” Inside the group, pressure to invest or invest more increases. As more people buy in, increased trading activity creates the illusion that the group’s strategy is working. This artificial demand pushes the price higher and reinforces confidence in the investment. Once the price reaches a certain level, the scammers sell their shares. The stock price drops sharply, the group chat often disappears and communication stops, and investors who bought at higher prices are left with significant losses.

 

How can you protect yourself before you invest?

A simple rule can help reduce your risk; always be cautious about any investment advice, especially unsolicited, that comes through messages or online conversations.

Beyond being cautious with online conversations or unsolicited offers, before you invest:

• take time to research the company using reliable, independent sources
• look for clear information about what the company does and where it operates
• be especially careful with newly listed or lesser‑known stocks
• avoid acting on instructions to buy at a specific time or price

Most importantly, check who you’re dealing with. Even when a stock itself is real, the person promoting it may not be authorized to give investment advice. That’s why checking registration is always important.

Anyone offering investment advice or promoting investment opportunities in Alberta should be registered with the ASC. If you can’t verify that information, don’t move forward. Legitimate investments don’t disappear because you take time to check; scams often do. If you think you’ve been a victim of a ramp-and-dump scam, contact the ASC, your bank and local police immediately.

It often starts in a way that feels harmless.

A quick message from a “friend.” A direct message that looks professional and familiar. A post from what looks like a legitimate firm. The opportunity being presented sounds safe, and the returns seem steady, but then the pressure starts, and there is a sense of urgency to act now or miss out.

That’s how many investment scams work: not by targeting careless people, but by building trust and confidence first, then applying pressure before there’s time to stop and verify what’s real.

Investment fraud remains one of the most financially damaging forms of fraud in Canada. Losses can be large, and the recovery is most often impossible. For many Albertans, the impact goes beyond money, affecting trust, confidence, and long-term financial security.

 

Fraud Prevention Month: Why it matters

Every March, organizations across Canada come together for Fraud Prevention Month, a national initiative aimed at helping people spot, avoid, and report fraud. While the tactics used by fraudsters continue to evolve, understanding how scams happen and recognizing the warning signs early is an important part of protecting yourself and those you care about.

The Alberta Securities Commission (ASC) works closely with partners across the province, including the Alberta Community Crime Prevention Association (ACCPA), to support a coordinated and consistent approach to fraud education. While our partners address crime prevention broadly, the ASC’s role is focused on protecting Albertans from investment-related scams, from misleading crypto opportunities to high-pressure sales tactics to increasingly sophisticated online impersonations.

Throughout March, we’ll be sharing practical insights aligned with ACCPA’s Fraud Prevention Month themes. You’ll see tips and reminders about:

• Artificial Intelligence (AI) helping scams
• Investment Scams
• Online Scams
• Mass Marketing Scams
• Relationship Scams

 

Fraud Prevention Month themes and how they affect investors

Artificial Intelligence (AI) helping scams

Advances in artificial intelligence are making scams more convincing than ever. Fraudsters can now use tools such as voice cloning, deepfake videos, and AI-generated messages to impersonate trusted individuals or credible organizations.

In the investment world, this may look like:

• A voice message that sounds like someone you know, encouraging you to invest
• Videos appearing to show endorsements from public figures or company executives
• Emails or texts that look professional, polished, and legitimate

These tools are designed to create confidence and familiarity before investors have a chance to question what they’re seeing or hearing. When something feels unusually convincing, it’s important to pause and independently verify the source.

Investment Scams

Investment scams often follow predictable patterns, while the platforms and tactics may change and look more convincing than ever, the red flags stay the same:

• Pressure to act quickly before an opportunity disappears
• Promises of guaranteed or unusually high returns
• Attempts to build false trust. Claims that an investment is safe or has little to no risk
• Encouragement to keep the investment secret or avoid seeking advice
• Limited documentation or explanations that are vague or overly complex

Fraudsters rely on reassurance to lower skepticism, trust to maintain engagement, and urgency to prevent investors from taking time to verify information. These same tactics also show up after someone has already lost money, which is where recovery room scams come in. In these situations, scammers contact individuals who were previously defrauded and claim they can help recover the lost funds, for a fee. The outreach often feels official, sympathetic, or urgent, mirroring the same red flags: secrecy, pressure, and promises that can’t be verified.

It’s important to remember that no legitimate regulator or government agency charges a fee to help you, and most often it is not possible to recover the funds. If you’ve already experienced a loss, be especially cautious of unsolicited offers of recovery assistance, particularly those requesting upfront payment or personal information.

Online Scams

Online platforms have become a common channel for investment fraud, particularly when opportunities are promoted through social media, messaging apps, or online communities. This can include:

• Crypto hype and “can’t‑miss” token opportunities
• Online pump‑and‑dump schemes coordinated through groups or forums
• Messaging‑app communities claiming access to “exclusive” trading insights
• Fake accounts impersonating real advisors, firms, or regulators

These scams often rely on social proof, the impression that others are already investing or profiting. Repeated posts, testimonials, or screenshots can create a false sense of legitimacy. If an investment opportunity is being promoted primarily through social media posts, direct messages, or private group chats, investors should treat this as a warning sign and take extra steps to verify all the information independently.

Mass‑Marketing Scams

A mass‑marketing investment scam is a type of fraud where scammers use tools like email, social media ads, phone calls, messaging apps, or fake websites to contact large numbers of people at once. Their goal is to get someone to invest in an opportunity that is fake or misleading.

These scams often rely on attractive promises, such as high returns, little or no risk, or access to special or insider information. Scammers send out many messages and wait for someone to respond, click a link, or start a conversation.

Relationship Scams

Relationship scams, including romance scams, are deeply personal and emotionally harmful. Increasingly, they also lead to investment fraud. After building trust over time, a fraudster may introduce an “investment opportunity,” often involving cryptocurrency or online trading platforms they claim to use themselves. These opportunities may be described as safe, profitable, or exclusive. Once money is transferred, the scammer and, often, the platform disappear.

Any time a new or online relationship starts discussing money or investing, it’s important to pause and talk to someone you trust before taking action. Legitimate investments do not require secrecy or emotional pressure.

 

How Albertans Can Protect Their Money

Fraud prevention doesn’t require becoming an investment expert. Small, practical steps can make a meaningful difference.

• Take your time: Pressure to act quickly is a common feature of fraud. Legitimate opportunities allow time for review and verification.
• Be cautious of guarantees: All legitimate investments involve some level of risk. Claims of guaranteed or low-risk returns should raise concern.
• Do your own research: Verify information using independent sources, not just what the seller provides.
• Check registration before investing: Confirm whether the individual or firm is authorized to sell investments in Alberta.
• Avoid unsolicited offers: Especially those received through social media, text messages, or messaging apps.
• Report concerns: If something feels suspicious, contact the ASC.

Fraud Prevention Month is an opportunity to learn how investment scams operate and how to recognize the warning signs. Understanding tactics like reassurance, trust, and urgency help prevent financial loss. Staying informed and taking time to verify before investing makes Alberta a harder place for fraudsters to operate.

Use the free tools at CheckFirst.ca to check registration, spot warning signs, and learn more before you invest. If an investment opportunity seems suspicious or doesn’t feel right, please report it through CheckFirst.ca or contact the ASC through its Inquiries line.

 

 

Each year brings with it new investing trends, platforms and opportunities. And with any exciting or top-of-mind trend or event comes an often-overlooked risk: Fraudsters. They are also paying close attention to the next big thing that can make their scams more attractive.

As more Canadians, especially younger investors, rely on digital tools to guide their decisions, investment scams and technology-driven promotional tactics are evolving rapidly. Data trends indicate that by 2026, the scams targeting Albertans will mimic people they trust through realistic videos, friendly group chats, or familiar social media content.

According to the Alberta Securities Commission (ASC), early warning signs point to three technology-driven tactics that could significantly shape the 2026 scam landscape in Alberta: deepfakes, the next wave of finfluencers, and the growing use of private messaging apps, like WhatsApp and Telegram, to promote investment opportunities.

This article outlines the most common AI-driven investment scam tactics Alberta investors may encounter in 2026 and how to spot and avoid them.

 

Deepfake investment scams: How AI is impersonating trusted voices

Deepfake technology is no longer a novelty; it has become an everyday risk. Over the last few years, social media has been inundated with advertisements and seemingly legitimate news articles featuring public figures like Elon Musk and even current Prime Minister Mark Carney.

However, there has been a shift. What is changing is who is being impersonated. Rather than global celebrities, scammers are increasingly turning to local figures because they feel more relevant and trustworthy to Albertans.

One deepfake scam that circulated widely in 2025 used the likeness of David Rosenberg, a well-known Canadian economist and founder of Rosenberg Research. Reaching followers through advertisements on Facebook and Instagram, these posts promoted a fake investment program with an AI-version of Rosenberg and promised quick returns of 30 to 70 per cent.

Warning Albertans of the widespread nature of these scams, in 2025, the ASC cautioned the public of a suspected crypto investment scam that appeared to be endorsed by a fake news article or endorsements, similar to the one including David Rosenberg.

In 2026, the ASC is warning Albertans that deepfake scam tactics could look like:

• Videos of well-known Alberta business figures promoting exclusive investment opportunities.
• Fully AI-generated “advisors” with cloned voices and realistic faces promoting high-yield investments or crypto platforms.
• Deepfake speakers presenting at online investment seminars, and potentially even in-person events.

Private group investment scams: How WhatsApp and Telegram are used to build trust

Private messaging apps such as WhatsApp, Telegram, and private Discord servers are increasingly being used to facilitate investment scams.

Fraudsters often first make contact through social media ads, comments, or direct messages (DMs), then quickly move the conversation into private group chats where conversations feel more personal and, more importantly, are harder to trace or report.

In some cases reported to the ASC, Albertans have mentioned being added to WhatsApp groups that appear to be run by local investors or professionals, complete with regional references and time-specific market updates — all designed to make the group feel legitimate. These groups are often positioned as educational spaces or invite-only communities offering early access to investment opportunities. Over time, trust is built through:

• Screenshots of supposed profits.
• Testimonials from other group members.
• Frequent activity that seemingly validates the opportunity.

In 2026, these tactics may become even more convincing with the help of AI-generated messages, bots posing as successful investors, and deepfake voice notes from so-called group leaders.

 

Finfluencers and unregistered advice: What investors in Alberta should know

Financial influencers, or finfluencers, have already changed how many people learn about investing. But the trend is far from over. By 2026, we can expect a second AI-driven wave that is more local, more commercialized, and more difficult to differentiate from legitimate investing education.

A recent case in Alberta shows how quickly this content can cross the line. In 2025, a Canmore-based content creator known as Jayconomics was found by the ASC to have breached securities law after promoting investments without clearly disclosing that he was doing so on behalf of four Alberta issuers. Some followers reportedly lost money after acting on his recommendations.

This case highlights how persuasive and risky influencer-driven investment content can be.

To address the growing risks, on December 11, 2025, the Canadian Securities Administrators (CSA), the umbrella organization that includes other provincial regulators including the ASC, issued guidance aimed at helping finfluencers and firms understand when online content may cross into regulated activity.

The guidance explains that finfluencers may be subject to securities law when they:

• Provide investment advice.
• Promote securities/investments for compensation.
• Direct followers to trade through affiliated links.

The guidance also clarifies that the “general advice” exemption applies only when content is not tailored to individuals and information about a financial interest in securities must be disclosed.

Remember: If you see an investment opportunity promoted through a video, ad, or private message, take a moment to verify who’s behind it. Generally, anyone offering investments or personalized investment advice must be registered with the a provincial securities regulator. You can verify this using the Check Registration tool on CheckFirst.ca.

How to protect yourself from investment scams in Alberta

Even as these scam tactics become more sophisticated, the fundamentals of protecting yourself remain the same:

• Slow down. Fraudsters rely on urgency to prevent you from asking questions or doing your research into the credibility of the investment.
• Check the registration of the person or platform before you invest or follow advice.
• Be cautious of unsolicited investment opportunities promoted through videos, DMs, social media, or private groups.

How to report investment scams in Alberta

Use the free tools at CheckFirst.ca to check registration, spot warning signs, and make informed decisions before you invest. If an investment opportunity seems suspicious or doesn’t feel right, you can report it through CheckFirst.ca or contact the ASC through its Inquiries line.

 

When news of an investment scam breaks, it’s sometimes easy to tell ourselves, “That could never happen to me.” Yet each year, many Albertans, both experienced and new to investing, are defrauded in seemingly real investment opportunities.

In August 2025, the Alberta Securities Commission (ASC) issued a ruling against Craig Michael Thompson and his companies, Black Box Management Corp. and Invader Management Ltd., for carrying out one of the largest Ponzi schemes in Alberta’s history. Over three-and-a-half years, Thompson invested more than $150 million CAD, and defrauded over 1,000 investors across Alberta and the U.S. of at least US$47 million.

 

It can be hard to spot the warning signs of an investment scam

It might be easy to think the victims of Thompson’s fraud were risk-takers willing to make high-risk bets for big rewards. But unlike many investment scams that promise quick riches or unrealistic returns, Thompson’s schemes were disguised as a low-risk, professional operations.

So how did Thompson lure people in and keep them deceived? The answer lies in the psychology of trust and the behavioural biases that scammers use to exploit people.

 

How Ponzi scheme operators use trust to deceive investors

Investment scams aren’t just built on fake documents or false account statements. They are built on stories; stories that feel personal, believable and trustworthy.

In this case, Thompson claimed to have mastered the markets, telling potential investors that he had not experienced a single losing day since 2014. He also used three classic persuasion tactics to draw in investors:

1. Authority: The “expert” who never loses a trade

Thompson positioned himself as an experienced and successful day trader, claiming he had never faced a negative trading day since 2014. He used technical jargon, like “stop-losses”, and produced fake weekly reports detailing his trading wins to make himself sound credible.

Fraudsters often use complex language not only to reinforce expertise and appear knowledgeable, but also to intimidate. This can make investors less likely to ask questions or challenge claims, allowing repeated statements to feel more convincing.

This is called the illusory truth effect: the tendency to accept information as true simply because we hear it repeatedly. Each time Thompson reinforced his “no losing days” story through conversations or weekly updates, it became more credible.

CheckFirst tip: Confident claims and repeated tales of success don’t tell the full story or replace legitimate qualifications and industry registration. Instead of relying on repetition or reputation, do your own research and look for verified information. Always ensure that the person you are working with is registered to sell investments with a provincial securities commission before you invest.

2. Social proof: Everyone else is “making money”

Many Black Box investors heard about the opportunity through friends, colleagues or family members who, based on reports, believed that their own investments were growing. In reality, Thompson generated fake reports for early investors that showed steady returns, which they shared with others, unknowingly helping spread his scheme.

It is human nature to follow the actions of the group. When others around us seem to be having success, it can feel reassuring and safe to follow their lead. Scammers know this and take advantage of psychological biases like herding behaviour or the fear of missing out (FOMO). They use this to manipulate trust between groups to create the illusion of legitimacy.

CheckFirst tip: If someone you know, even a friend or family member, recommends an investment or a person to work with, take a step back and verify the details for yourself. Again, independent research and registration checks are your best defence against fraud.

3. Illusion of control: “Don’t worry, you can withdraw your money anytime”

Thompson also offered investors a sense of control. They were told they could withdraw money at any time, which many investors did, making the opportunity feel flexible and low risk. Supported by fake weekly reports that showed two to three per cent “profits”, Thompson reinforced that illusion of safety.

But real markets don’t work that way. Returns fluctuate. No-risk and consistent positive returns aren’t just unlikely, they are unreal. If you’re being shown a steady gain every week regardless of what’s happening in the economy, that’s a sign that something isn’t real.

CheckFirst tip: Legitimate investing involves volatility. Be cautious of anyone who promises smooth, guaranteed growth or no down weeks. Start by understanding investment risk.

 

How the Black Box Ponzi scheme collapsed

Like all Ponzi schemes, Black Box relied on a steady flow of money from new investors to pay earlier ones, until the scheme eventually unravelled.

By the fall of 2023, the scheme collapsed, leaving more than 1,000 investors with significant losses. Of the roughly $150 million raised, Thompson lost at least US$47 million. The rest was used to pay earlier investors, lost through trading, transferred to other entities, or diverted for Thompson’s personal benefit.

When concerns were raised by investors and their financial institutions, the ASC acted quickly to investigate and freeze accounts.

“When we received a call from a financial institution raising concerns about a potential Ponzi scheme in one of their client accounts, we took immediate action to have those accounts frozen and issue interim orders,” said Cynthia Campbell, the ASC’s Director of Enforcement, speaking to the media. “At that point, only about US$300,000 remained. It appears all of the other funds were gone.”

Thompson and his companies admitted to trading securities and defrauding investors. As part of a settlement agreement in August 2025, they were sanctioned and ordered to pay nearly $9 million to the ASC.

 

How to protect yourself from investment scams

Even the most seasoned investor can be manipulated by a story that feels personal. The best way to protect yourself is to slow down and ask questions before you hand over your hard-earned money:

• Pause before you invest. Fraudsters rely on urgency. Take your time to evaluate.
• Check registration. Use CheckFirst.ca to see if the person and/or company is registered to sell investments.
• Ask questions. If you can’t clearly understand the investment opportunity or identify the risks — it’s time to step back.
• Expect fluctuations. Legitimate investments rise and fall. Guaranteed or always positive returns don’t exist.
• Seek a second opinion. Talk to a registered financial professional or a third party before making big investment decisions.

Doubt alone isn’t the only way to keep you and your money secure. Before you invest, do your own thorough research. Ask questions, and verify information against publicly available and trusted sources.  When it comes to your money, the smartest move you can make is to CheckFirst.

 

A polished social media ad and a friendly invite to an “investors” messaging group might seem like an exciting first step towards a lucrative financial opportunity. But wait, this could be the bait of a well-orchestrated scam. According to the Canadian Anti-Fraud Centre, in 2024, Canadians lost $310 million to investment fraud – with many scams taking place online, including on social media networks.

Fraudsters commonly promote and sell their investment scams to potential victims through advertising on popular social media platforms and apps. These ads commonly promote fake “experts” or “advisors” who offer investment opportunities with high returns and the reassurance of little to no risk.

To connect with potential victims and make communications private and harder to trace or report, fraudsters will direct interested investors to a WhatsApp, Telegram or Facebook Messenger group to receive stock trading tips or guidance. Within these private groups, fraudsters work quickly to establish their fake credentials with the claim of being certified or registered. From here, fraudsters can use various tactics, including:

• Pump-and-dump schemes that involve guiding investors to invest in stocks that the fraudster is already heavily invested in, using fake information and promotional material to build excitement. As investors put money in, the value of the investment artificially increases. Once the fraudster can no longer pull in any new investors, they sell their shares for considerable profit and tank the value of the investment for everyone else.
• Providing guidance as an “advisor” and requesting that money be sent to them via wire transfer or crypto for them to invest on your behalf. Once money is sent over, the fraudster may send over fraudulent documents highlighting early but fake returns to establish credibility and incentivize the victim to send more money.
• Directing investors to a fake trading platform to deposit money and start trading. While the platform looks legitimate with charts and simulated trading, money is not actually invested but taken by the fraudster. The fraudster may use the simulated returns in the investor’s account to push them to invest more for greater returns over time.

No matter what strategy the fraudster deploys, the results are the same for the victim. Investors may:

• Lose most or all of their “invested” funds.
• Not be able to access their funds with claims from the fraudster that a tax or fee requires payment, specific forms to be filed or that the investment needs more time to grow.
• Be unable to contact or receive a reply from the fraudster. This is often followed by the fraudster deleting their account and messages and even shutting down fake trading platforms.

Real investment scam ads advertised to Albertans

 

How can you spot the red flags of social media and messaging app investment scams?

Although it may sound exciting, before you invest in any opportunity promoted online or with someone claiming to be an investment advisor or professional, consider the following:

• Is the ad promoting unrealistic returns or guaranteed profits? Remember, this is a common tactic to lure in victims. No investment can guarantee you returns, especially those claiming to double or triple your money in a short period of time.
• Are you being directed to other messaging apps to continue the discussion? This is a red flag that you may be dealing with a fraudster and should be avoided. These messaging apps are used to keep the conversation private and make it easier for the fraudster to disappear and harder to trace.
• Is the person claiming to be an expert or registered investment professional? Generally, anyone offering investments and all trading platforms dealing with Albertans should be registered with the Alberta Securities Commission. While you can verify the registration of any individual or trading platform, you cannot verify the true identity of a person online. Fraudsters commonly use the names and credentials of registered investment professionals to look legitimate. It is strongly advised that you do not send money to anyone you have not met in person or cannot validate their identity.

 

What should you do if you think you’ve been scammed?

If you are suspicious about an investment opportunity offered to you online through social media or feel like you were the victim of an investment scam, contact the Alberta Securities Commission below.

File a complaint
1-403-355-3888
complaints@asc.ca

 

Recently, the Canadian Securities Administrators launched a national ad campaign, as seen above. This campaign is designed to bring awareness to these kinds of investment scams offered through social media and messaging apps. Knowledge is power when it comes to preventing and reporting investment scams. Take the time to share this article with those you care for so they can be empowered to recognize and avoid this insidious form of investment scam.

Knowledge is power when it comes to preventing and reporting investment scams. Take the time to share this article with those you care for so they can be empowered to recognize and avoid this insidious form of investment scam.