It can be hard to resist a great investment tip, but investors need to know what they are getting into.
The Financial and Consumer Affairs Authority (FCAA) wants help Saskatchewan investors by highlighting investment scam red flags.
“We want people to spot investment scams so they don’t become victims of a scam,” FCAA director of securities Dean Murrison said in a press release. “Giving practical tips, such as: do not give out your personal financial information to strangers, can help people protect their hard earned money.”
Red flags to watch out for include:
- 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
There are several ways investors can protect themselves.
- Check the registration of the person or company selling using the Canadian Securities Administrators National Registration Search
- Check the disciplinary history for the person or company using the Canadian Securities Administrators Cease Trade Orders database
- Do your research so you know exactly what you are investing in and if the investment exists
- Seek professional advice
- 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 the FCAA website.
