Warning Signs of Investment Fraud
The Financial and Consumer Affairs Authority (FCAA) is highlighting investment scam red flags and tips to help Saskatchewan investors protect their money.
“We want people to spot investment scams so they don’t become victims of a scam,” FCAA Director of Securities Dean Murrison said. “Giving practical tips, such as: do not give out your personal financial information to strangers, can help people protect their hard earned money.”
Here are some red flags to watch out for:
- If it sounds too good to be true, it probably is.
- High returns on a low-risk investment.
- Secret, “this is only available for you” sales pitch.
- Pressure to make a quick decision.
- Request for personal financial information from strangers.
What you can do to protect yourself:
- Check the registration of the person or company selling or advising about securities or derivatives. The Canadian Securities Administrators National Registration Search is a simple and free tool for investors to use to check registrations.
- Check the disciplinary history for the person or company, to find out if they have broken regulatory rules in the past. It is easy to do, using the Canadian Securities Administrators Cease Trade Orders database and the list of disciplined people and companies.
- Know exactly what you are investing in.
- Take time to research the investment, and see if it actually exists.
- Do not feel pressured, seek professional advice about the investment.
- Do not give out personal financial information to strangers.
If you have questions or concerns about investment fraud, contact the Securities Division at 306-787-5936.
For more information about investment fraud, visit http://fcaa.gov.sk.ca/consumers-investors-pension-plan-members/investors/investment-fraud/red-flags-and-what-to-do.