A phony scam website run by Canadian securities regulators found that Canadian investors remain vulnerable to online investment fraud.

Between November 27, 2011 to February 5, Canadian securities regulators ran a public education initiative that included online ads and social media promotions that pointed to a website for a fictitious company, BlueHedge Investments, to illustrate how scam artists use these online tools to lure unsuspecting investors.

During the 10-week campaign, the BlueHedge website received almost 18,000 visits from across Canada, the Canadian Securities Administrators report, with 71% of those arriving to the site because they clicked on online ads, many of which were featured on popular search engine sites. Regulators also found that more than 10% of those who received unsolicited emails from BlueHedge opened the emails, and of those, almost 13% clicked on its links.

Anyone who tried to enter any personal information on the site, or clicked to ‘Invest Now’, was redirected to an educational website with tools and information about recognizing, avoiding and reporting investment scams they might find online or via social media.

“Our recent campaign showed us that people are willing to click on online ads and open emails touting investment opportunities from unknown sources,” said Bill Rice, chair of the CSA and chair and CEO of the Alberta Securities Commission. “Potential investors need to be more wary when dealing with investment opportunities they see advertised online.”

“Our enforcement teams across the country have firsthand knowledge of how unscrupulous promoters are turning to the internet to market their fraudulent investment opportunities and the threat these online investment scams pose to Canadian investors,” said Rice. “Canadian securities regulators felt it was important to address these tactics head on and educate potential investors in the same spaces where fraudsters solicit their victims.”

The initiative involved all the members of the CSA except Ontario and Manitoba. Both the BlueHedge Investments website (www.BlueHedge.ca) and the educational website, (www.BlueHedgeIsntReal.ca) remain active, serving as investor education resources. Investors are encouraged to visit BlueHedgeIsntReal.ca to assess their investment scam savvy and use the social media tools provided to help share the information.