CIRO Warns of Emerging Account Intrusion Scams

The Canadian Investment Regulatory Organization (CIRO) has issued a public warning about an emerging scam known as account intrusions, which targets online accounts.

According to the CIRO, account intrusions occur when criminals gain unauthorized access to online accounts by exploiting phishing tactics, including fraudulent emails, text messages, malicious links, and apps. Once inside, scammers can execute unauthorized trades, transfer funds to untraceable and foreign accounts, or attempt direct withdrawals. These scams often involve sophisticated tactics, such as sending urgent requests to update passwords under false pretenses or requests to click on malicious links. The scammers may also mimic legitimate organizations’ email addresses and website links to deceive victims.

According to CIRO’s Investor Survey, nearly one in five Canadians have been approached with potential investment fraud. The survey also revealed that most incidents stem from unsolicited spam emails, text messages, calls, or social media messages from strangers. In response, CIRO gives a straightforward caution: “Stop and think before you click!”

Kevin McCoy, Senior Vice-President of Market Regulation at CIRO, said: “Through their gatekeeper obligations, dealers have assisted CIRO’s Trade Review and Analysis Team in identifying an increase, or pattern, in these account intrusions. With the increased use of online DIY platforms and investors accessing their accounts on-the-fly on mobile devices, we felt it was important to flag this relatively sophisticated scam and provide meaningful tips for Canadian investors to help protect themselves.”