Fraud Prevention Month: focus on investment-style scams

By Medicine Hat News on March 11, 2026.

From pyramid and Ponzi schemes to cryptocurrency-related fraud, the Medicine Hat Police Service is reminding Hatters to be vigilant when investing money during the second week of Fraud Prevention Month.

On Tuesday the MHPS released its second Public Service Announcement this month highlighting investment scams that can happen in person, over the phone, online or through the mail, and providing residents tips to identify and prevent becoming a victim.

Police say the goal of investment-style scams is to persuade the victim to invest in what appears to be an established industry, a new opportunity or a promising sector that is fraudulent, resulting in the fraudster taking any money the victim “invested.”

Ponzi schemes are common frauds involving investments that are not real. Fraudsters are able to lure victims by often promoting high returns on an investment with little or no risk, and are able to create the illusion of “legitimate returns” because they pay off early investors with money from the victims or “new investors.”

Another scheme relying on recruiting new investors are pyramid schemes. Fraudsters encourage victims to pay money as well as recruit more people, whose money is used to pay early participants.

“As with Ponzi schemes, when recruitment slows, the entire scheme falls apart,” reads the PSA. “Remember: if it sounds too good to be true, it probably is.”

Police say cryptocurrency-related scams are on the rise and warn of high risks as it is not a government regulated currency.

“Once funds are transferred to another person’s digital wallet, recovering them can be very difficult.”

Cryptocurrency is also transferred globally at speeds that make investigations more complex and often irrecoverable.

Police are also spotlighting real estate-related scams, another common tactic used by fraudsters, such as fake rental listings, fraudulent property investment opportunities or scammers posing as a “seller” who does not own the property they claim to be selling.

In these situations fraudsters pressure victims to send deposits or investment funds quickly before there is time to verify ownership.

Police are reminding residents who are moving to confirm property details independently and avoid sending any money without appropriate documentation.

Other tips police have provided residents include to always ask questions and be cautious and aware of high-pressure sales tactics.

“Don’t be swayed by appearance or charisma. Focus on the details, not the salesperson.”

Police recommend to never rely on verbal agreements and also get everything in writing.

Officers also recommend seeking guidance from trusted professionals like lawyers, accountants or licensed investment advisers, or check the Alberta Securities Commission Investor Alerts to stay informed about risks.

Anyone selling securities in the province must be registered with the Alberta Securities Commission, with imited expectations.

Police say the No. 1 way to avoid becoming a victim is to not share personal or financial information unless you have independently verified who you are dealing with.

If you believe you’ve been targeted or have sent money, police encourage reporting it as soon as possible to the MHPS as well as the Canadian Anti-Fraud Centre.

Last year Hatters were scammed for more than $4 million through local and global fraud-related crimes, according to the MHPS.