Www.investinknowingmore.ca Investing 101 – Part 3 Spotting Frauds and Scams.
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Transcript of Www.investinknowingmore.ca Investing 101 – Part 3 Spotting Frauds and Scams.
www.investinknowingmore.ca
Investing 101 – Part 3
Spotting Frauds and Scams
www.investinknowingmore.ca
Agenda
• Introductions• Avoiding frauds and scams– Red Flags– Protect Yourself–Where does investment fraud show up
online?– Protecting yourself online–What to do if you’re concerned
www.investinknowingmore.ca
Who is the NBSC?
• NBSC– Crown corporation– Protect investors and foster capital
markets–We also offer unbiased education
information on about informed investing
www.investinknowingmore.ca
Who is at risk?
There is no“typical victim ”
of investment fraud.
www.investinknowingmore.ca
The Red Flags
• Guaranteed high returns / no risk• High pressure sales tactics – “Act
now!”• Offshore or tax free• Profit like the experts• Your friends can’t be wrong• Secrecy• Overly consistent returns• Unregistered activity
www.investinknowingmore.ca
Red Flags in action: Why a Ponzi fails
www.investinknowingmore.ca
Red Flags in Action
• Profit like the experts – the exclusivity of the investment appealed to investors
• Overly consistent returns – Madoff reported losses in only 7 months over a 14 year period
• Secrecy – He refused to provide disclosure documents to investors who wanted to do their due diligence.
www.investinknowingmore.ca
How do I protect myself?• Avoid potential problems
Check before you invest– Registration
– Disciplinary history– Company history
– News
www.investinknowingmore.ca
How do I protect myself?• Ask yourself:– Is the firm and individual registered?– Can I verify this investment with a
credible source?– Is the risk I’m taking reasonable?– Is the opportunity based on facts?– Do I understand how the investment
works?– Have I had time to make an informed
decision?
www.investinknowingmore.ca
Investing Online - Where can fraud show up?• Online bulletin boards• Social media profiles• Social network messages/chat
rooms/discussion boards• Email spam
www.investinknowingmore.ca
Online safety – Social Networks• Profiles– Social networks make victim profiling
easier for scam artists– Advertising on social networks can be
targeted to a very specific group–We connect with strangers and give
them access to our personal information in a way we never would offline
www.investinknowingmore.ca
Online safety – Emails• Emails
– Spelling errors and poor grammar– Redirect or fake links (hover over to check)
• Take a moment to think about the message:– Do you even have an account at that bank?– Would your credit card company really email you
about something as important as account access?– The CRA has never asked for your address.– Would someone REALLY send millions of dollars to
a stranger?– Is the message sent to just you or multiple
people?
www.investinknowingmore.ca
How do I protect myself online?• Don’t share personal details
• Type your bank or social network’s website URL instead of clicking links
• Do the same homework online as you would offline
www.investinknowingmore.ca
What to do if you’re concerned• Report any suspicions or concerns
you have.
• Check with us if you’re unsure – we’re here to help.
www.investinknowingmore.ca
Learn more!• www.investinknowingmore.ca
• Facebook.com/4NBInvestors
• Twitter: @4NBInvestors
• Email: [email protected]
• Toll free: 1 866 933-2222
