RRSP Fraud - AMF cautions investors about classified ads

Investor warnings - News

Montréal – The Autorité des marchés financiers (AMF) is urging investors to be cautious about offers in local classified ads offering to assist individuals in financial difficulty.

These ads offer financial assistance to RRSP, LIF or LIRA holders who are in need of cash. They tend to appear in the "Loans" and "Financial Assistance" sections of the classifieds in weekly and daily newspapers, such as was the case in the "Carrefour" scam unveiled in early December 2009.

"Some fraudsters prey on people who are financially vulnerable, especially during the Holidays," noted Anne-Marie Poitras, AMF Superintendent, Client Services and Compensation. They often use ads to lure consumers into making withdrawals from an RRSP or pension fund by promising them cash and high-yield tax-free investments. "Consumers should be on their guard, as these investments are often fraudulent and could have serious financial and tax consequences," explained Ms. Poitras.

For further information, consumers should consult the Fraud Prevention section of the AMF website, which contains flyers such as Tax-free Withdrawals from your RRSP or LIRA – Beware of Fraud! This flyer may also be ordered through the AMF Information Centre.

If you see these types of ads or offers, contact the AMF Information Centre.

The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec’s financial sector.

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