Fraud awareness
Warning Against Frauds and Scams
Beware of Scams! Avoid sharing your bank, credit card, investment, insurance, provident fund account, or any other crucial personal information through hyperlinks in suspicious messages claiming to be from our institution.
Stay Informed and Secure
Anyone can fall victim to financial fraud and scams. The best defence is to remain informed, alert, and secure. Below are details on common financial scams, along with advice and tips to help you avoid becoming a victim.
Examples of Common Scams
Fraudsters are constantly devising new methods to target victims. Stay vigilant and consider the possibility of fraud, even if the situation doesn't precisely match the examples below. Watch for notices or warnings from your local regulator regarding fraudulent activity patterns.
Impersonation Scams
Fraudsters may impersonate a legitimate firm to persuade you to transfer money to their account. They might claim to represent reputable financial services companies, including Interactive Brokers. The aim is to trick you into transferring money to an account that appears legitimate but is controlled by fraudsters.
Be cautious of unsolicited calls or emails requesting money. Verify that all emails use the firm's genuine domain name. Be particularly wary of unprompted interactions through social media platforms. If uncertain about the legitimacy of a communication, contact Totality Client Services.
Investing with an unregulated firm means you are not entitled to compensation schemes or recourse to relevant institutions.
Watch Out for Red Flags!
Warning signs if contacted by someone claiming to work for Totality:
- Totality does not cold call consumers to offer services or products nor make investment recommendations.
- Totality does not interact directly with customers through social media channels.
- Totality does not charge for assistance or guidance in completing an account application.
- Totality does not charge a fee to withdraw your funds.
- Totality does not request remote access to your computer or mobile device.
- Totality does not ask you to action an internal or external transfer of stock or money over the phone.
- Totality does not ask for login details, especially when creating a sense of urgency.
Check and Double-Check!
If contacted by someone claiming to work for a regulated firm, remember:
- Verify the firm's details on its local regulator’s website.
- Be aware that scammers may direct you to the real firm’s genuine website but use different details for their communications.
- You can contact Totality to verify information or report concerns via Client Services.
- If you do not hold an account with Totality, report any fraud concerns to the police in your jurisdiction.
Pump-and-Dump or Ramp-and-Dump Schemes
Fraudsters invest in a stock and spread false information to create a buying frenzy, artificially inflating the stock price. They then sell their shares at the inflated price, causing other investors to lose money as the price drops. These recommendations may be presented as 'hot' information from insiders.
Trash-and-Cash Schemes
The opposite of pump-and-dump schemes, scammers circulate false information to encourage selling a security, causing its price to plummet, and then buy it at a low price.
Pension Liberation Scam
Fraudsters promise "penalty-free" early access to pension benefits through alleged tax loopholes, using complex schemes to erode pension accounts through commissions and investments.
Affinity Fraud
Scammers exploit their victim’s identity to gain confidence, often involving fake investments or misleading details. Many affinity frauds are Ponzi or pyramid schemes.
To protect yourself, always conduct your own research and due diligence before accepting investment advice or services.
Holy Grail Scams
Scammers market a secret formula or strategy promising extraordinary returns. Be cautious of extravagant claims and testimonials that seem too good to be true. They usually are!