OPP Warn Residents Of Ponzi Style Fraud

The Essex County Ontario Provincial Police are reminding the public to be wary of investment scams and would like to raise awareness regarding a new Ponzi style investment scam circulating within Essex County.

Police say that on January 17th, 2025, Leamington OPP responded to a report of a fraud. It was reported that the victim had lost approximately $109,000 in an investment scam involving investing in a business related to the sale of alcohol. This type of scam has the victim invest money, then a return on the initial investment is made to gain the trust of the victim. The fraudster will then return to the victim with another investment opportunity and ask to share the information with friends and family in hopes of lure in more investors. The Essex County OPP Crime Unit is continuing to investigate this incident.

Essex County OPP would like to take this opportunity to raise awareness about the investment Ponzi scams.

In a Ponzi scam, an investor buys into a scheme offering higher-than-normal returns. The scammer then pays early investors with money from new investors. Investors believe their investment is returning high profits, but the scheme will eventually collapse.

Warning signs – How to protect yourself

• Always approach investments promising high returns and little risk with deep skepticism.
• Never put your money into something you don’t fully understand. Ask lots of questions about any parts that are unclear or too complex.
• Always verify that the organization you’re dealing with is legitimate before you take any other action:
• Unsolicited phone offers are usually red flags for investment scams.
• If you suspect an investment is a scam, report it to the appropriate authorities: you could be saving not just your own money but those of others while helping uncover a much larger crime.

Anyone who suspects they have been the victim of cybercrime or fraud should report it to their local police and to the Canadian Anti-Fraud Centre’s (CAFC) online reporting system or by phone at 1-888-495-8501. If not a victim, you should still report the incident to the CAFC.