The Autorité des marchés financiers is cautioning investors about the risk of fraud through social media.
The Quebec securities regulator says that while the internet and social media can be valuable tools for investors, they also attract fraudsters. These communications channels can be a breeding ground for fraud, it says, because they make it possible to: easily reach a large number of potential victims; communicate anonymously or with a false identity; spread false rumours about securities to manipulate markets; and direct victims to fake sites that are seemingly identical to legitimate sites.
It is difficult to prove the identity, or evaluate the intentions, of someone you only know through social media, it warns. As a result, the AMF reminds investors to exercise caution about suspicious solicitations and to review privacy settings on their social media accounts.
It also recommends never disclosing personal information such as a home address, social insurance number, personal identification numbers (credit/debit cards) or passwords on social media.