Community Releases
March is Fraud Prevention Month
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How vulnerable are you to fraud?
We all want to make the most from our investments, but even smart investors get taken in by clever scams such as Ponzi Schemes, Affinity Fraud, Internet Scams and more.
Find out about some of the more common scams here: (http://www.getsmarteraboutmoney.ca/managing-your-money/planning/protecting-your-money/Pages/what-are-some-common-scams.aspx).
Use this quick quiz to find out how vulnerable you are to fraud: http://www.getsmarteraboutmoney.ca/tools-and-calculators/quizzes/quiz_fraud.asp.
What do you do if you suspect an investment scam?
More than three-quarters of those recently surveyed for the Canadian Securities Administrators 2009 Investor Index (http://www.getsmarteraboutmoney.ca/Investor-research/Related-research/Pages/2009-CSA-Investor-Study.aspx) believe it is important to report suspicious investment offers, but a mere 26% actually do. That leaves a lot of scam artists free to go after other victims. Here’s what you can - and should do - if you think you’re a target:
Don’t give out your personal information. Whether by phone or email, you don’t know who’s on the other end or how they’re using the information.
Research the investment. If the investment is real, you should be able to verify it with a credible, independent source such as a news service.
Check the person or company’s registration. Anyone selling securities, offering investment advice or managing an investment fund must register with the provincial Securities Commission, unless they have an exemption. Registration tells you what products and services a firm or individual can offer.
Check the investor warning lists posted by provincial Securities Commissions. It names the companies that have been flagged because they may pose a risk to investors.
Report investment scams. Call or email your provincial Securities Commission.
To learn more about protecting yourself from fraud visit http://www.getsmarteraboutmoney.ca/life-events/victim-of-fraud/Pages/default.aspx.
This is one in a series of communiqués from the Investor Education Fund. The Investor Education Fund offers unbiased financial information to the general public via www.GetSmarterAboutMoney.ca and to students through its Taking Stock in Your Future teacher program, Funny Money assembly program and online financial tools. The not-for-profit organization was established by the Ontario Securities Commission (OSC), and is funded through OSC enforcement settlements.
