InvestRight

Recognize it

One of the most common ways people hear about investment opportunities is over the phone. Cold calls are attempts by strangers to sell you something, and can be a valid means for businesses or charities to identify potential clients. But some people may call you from a makeshift office called a boiler room, where they cold call investors about a business idea that sounds probable. These cold callers may falsify information, try to pressure you into a bad investment or attempt to defraud you.

Check it out

 Protect yourself from cold calls by using this checklist: 

	Be wary If a salesperson says an investment opportunity is too good to pass up, don’t bow to pressure to make any decision on the spot. Say no, and hang up if someone is pushing you to invest.
	Stick with your own investment goals Don’t let someone persuade you to invest in an opportunity that isn’t right for you.
	Seek independent advice If it’s a legitimate opportunity, it’s not going away. Run it by a professional who is independent of the deal, like a lawyer or registered investment advisor.
	Give yourself some peace of mind Research the company or individual that is offering the investment. Ensure that you make an informed decision.
	Conduct background checks Find out if there has been any disciplinary action or enforcement action taken against the companies and individuals involved in the proposed investment opportunity.
	Check to see if the salesperson is registered Conduct an online registration search. You can also call your provincial securities regulator or the Investment Industry Regulatory Organization of Canada (IIROC) to find out more.

Learn more about boiler rooms in our Common investment schemes section. Also, check out the Protect your money section.

Report it

Even if you are not considering an investment or haven’t given your money to a person selling the investment, take the time to bring suspicious activity to the attention of securities regulators. Your care and attention may save a friend, family member or member of your community from falling victim to a scam artist.

In BC, contact BCSC Inquiries. You can also anonymously report suspicious activity through InvestRight’s Report a scam webpage.

Residents from other Canadian provinces can find contact information for their provincial securities regulator at
www.securities-administrators.ca.