Nova Scotia Securities Commission Warns of Recovery Scam Involving Impersonation

People sit outside the TMX Market Centre in Toronto, on Sept. 11, 2024. The Canadian Press/Paige Taylor WhiteThe Nova Scotia agency that regulates the trading of stocks, bonds and derivatives in the province is warning residents about an impersonation scam.The Nova Scotia Securities Commission says the scam involves fake letters sent to investors from someone claiming to be a member of the commission’s enforcement staff.The provincial agency issued a statement saying a letter was sent to a Nova Scotia resident who was the victim of a previous investment fraud.The letter says the commission and a federal regulator had approved granting the recipient financial compensation for their loss, but the letter also instructs them to transfer some funds to verify their account.The letter falsely claims that these funds will be returned along with their restitution payment.The commission says the letter is an example of a recovery scam, which hinges on persuading the victim that they will recover previously stolen money.“If anyone says they are with a regulator or law enforcement and claims to be able to get stolen money back, it is a recovery scam,” the commission said.A spokesperson for the commission said recovery scams typically involve fraudsters from the original crime reusing the victim’s financial information to victimize them for a second time. But the information in question is sometimes sold to other criminals seeking the same outcome, he said.The regulator is urging anyone who receives such a message to report it immediately.