Investment Scams - If it seems too good to be true... it is.

Investment Scams are highlighted for this second week of Fraud Prevention Month.

Stress about the economy, finding employment and making ends meet creates easy targets for fraudsters who promise high returns with little to no risk.

Some examples of investment scams include investment fraud through social media, Ponzi or pyramid schemes, cryptocurrency schemes, real estate scams, offshore investing schemes, etc.

Recognize

Some red flags to help you detect an investment scam:

• You are promised high returns with little or no risk
• You get a “hot tip” or insider information
• You feel pressured to invest quickly
• The seller is not registered to sell investments

Reject

• Be skeptical. Verify before your trust!
• Be suspicious of any unsolicited investment offers, especially if they require payment in Bitcoin or other digital assets
• Watch for cloned or spoofed websites that may look very convincing
• Verify information by using official websites and phone numbers - DO NOT use the contact information provided by the potential scammer

• Slow down and do your research!
• Fraudsters try to rush you. Take your time to make an informed decision, request information in writing and seek second opinions from credible sources before responding

• Only invest with regulated organizations and financial advisors
• Securities law requires that all investment industry professionals and firms be registered
• To check the registration of any firm you are interested in, visit the Alberta Securities Commission’s Checkfirst website and/or the Canadian Securities Administrators website.
• To see if a person or company has been flagged as a risk to investors, visit the Canadian Investment Regulatory Organization
  
  

Report

• If you have NOT suffered a loss, report to the Canadian Anti-Fraud Centre
• If you have suffered a loss, report to the Lethbridge Police Service and your financial institution
  
  

More resources:

• Canadian Anti-Fraud Centre
• Competition Bureau of Canada - Investment Scams website
• Lethbridge Police - Frauds and Scams website