Investment ads
Recognize it
To gain mass appeal for an investment scheme, scam artists will run ads wherever they think they can get some attention. The advertisements are often provocative, offering a life of luxury and dreams financial independence. While many investment advertisements are legitimate, you need to be wary of where fraudsters run ads and what kind of misleading information they include.
Check it out
Protect yourself from investment ad scams by using this checklist:
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Know where to look Scam artists run ads in newspapers, television, radio, billboards, and on the internet (classified, banner and pay-per-click). |
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Be aware of face-to-face meetings or media coverage Fraudsters set up tradeshow booths or seminars. Some also seek the media limelight, sometimes paying for “advertorial” spots on radio, TV or in newspapers. |
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Watch out for promises of guaranteed, low-risk investment opportunities Always question above-average growth involving little or no risk. |
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Be aware of frequent use of financial jargon Fraudsters use sophisticated language to convince investors that the people behind the opportunity are professional, knowledgeable, and experienced. |
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Be suspicious of free seminars or free gifts The promise of free incentives in an ad can make you pick up the phone to find out more. Avoid the temptation. |
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Understand the warning signs of a scam Ads that use “tax-free” or “offshore” are often misleading. Visit our Fraud warning signs section to familiarize yourself with the language fraud artists use when touting a scheme. |
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Research advertised investment opportunities Search your provincial securities regulator’s website or call to check on the company or individual selling the investment. |
Visit our Common investment schemes section to learn more about the types of scams fraudsters advertise. 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.