Top 3 Tricks Used By Scam Artists
Protect your investments Don't fall prey to these common frauds and scams.
Warning signs of fraud:
The good news is that most scams have some common warning signs that are fairly easy to spot. Before you give anyone your hard earned money, ask yourself these questions:
→ Were you promised a high return on a low risk investment?
One of the first rules of investing is that higher returns mean higher risk. In other words, the more money you can potentially make on an investment, the higher the risk of losing some or all of your money.
→ Did you have enough time to make a decision?
You should never feel pressured into buying an investment on the spot. If you hear things like “act fast," “one-time opportunity” or “buy now before it’s too late,” the person you’re talking to likely has something to hide.
→ Were you given confidential or “inside” information?
A scam artist may claim to have information that nobody else knows about a company. You have no way of knowing if the “inside” information is true. And even if it is, trading on inside information is illegal in Canada.
→ Can you verify the investment with a credible source?
If you receive an unsolicited investment opportunity, get a second opinion from your registered financial advisor, lawyer or accountant.
→ Is the person who contacted you registered?
Anyone who tries to sell you an investment or give you investment advice must be registered unless they have an exemption.