The Nova Scotia Securities Commission (NSSC) issued a warning regarding a fraudulent scheme targeting the public, wherein scammers impersonated regulatory enforcement staff. This scheme has reportedly affected at least one victim in Nova Scotia, who had previously faced investment fraud.

The NSSC reported that the victim received a letter that appeared to be authentic, containing signatures from staff members of both the NSSC and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). This letter falsely bore the NSSC logo and included a fabricated file number.

In a concerning twist, the letter claimed that the victim was approved for restitution amounting to $125,000 for their past investment losses. However, it requested that the victim transfer $10,000 to "verify" their account, stating that this amount would be reimbursed along with the restitution payment. Such tactics are common in recovery scams, where fraudsters attempt to exploit victims for additional financial gain.

The NSSC clarified that this communication was not officially sent by the commission or FINTRAC. They categorically identified it as an attempt to further victimise individuals who had already suffered financial losses due to earlier scams. The commission urged the public to be wary of anyone claiming to be a regulator or law enforcement official offering to retrieve stolen funds for a fee.

This incident marks the first known case involving impersonation scams utilizing the NSSC and its personnel. In recent years, similar scams have been reported across Canada, affecting various securities regulators, including those overseen by the Canadian Securities Administrators (CSA).

In response to this alarming situation, the NSSC is actively encouraging anyone who has received such misleading letters to reach out to them directly. They can be contacted at (902) 424-7768 or via email at NSSCEnforcement@novascotia.ca. By raising awareness, the NSSC aims to protect the public against further fraudulent activities and ensure that individuals remain vigilant against such scams.