Remember the old adage? Something that seems too good to be true, probably is.
Investment fraud makes most people cringe and I am no exception. The last thing I need while trying to grow my RRSP savings is to lose my nest egg.
One of the sneakiest way fraudsters con investors is known as affinity fraud. The scam artist approaches you is through a group or community organization that you belong to. They use the affiliation to gain your trust. Once they have established a strong relationship, they will try to convince you and other members to invest in their scheme.
Sadly, victims can lose some or all of their life savings to fraud. Often victims don’t report the fraud out of embarrassment or backlash leaving others vulnerable to the same fraud.
Signs of an Investment Fraud
· High returns with little or no risk
· Pressure to buy
· Unregistered salespeople or advisors
Avoiding investment scams
· Get a second opinion
· Take the time you need
· Research the investment
Check before you invest
Registration helps protect investors because investment regulators, like the Securities Commission, will only register people or companies that are qualified to sell investments or offer advice to the public.
If you suspect you have been approached by a fraudster or may have been a victim of a scam, report it immediately.
*All content in this eBook is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in this eBook constitutes professional and/or financial advice, nor does any information constitute a comprehensive or complete statement of the matters discussed or the law relating thereto.