February 19, 2008
The news is overflowing with stories about how volatile the markets are these days and that investors will earn less as a result. Fraud artists are always out there. But in times like these, people may be more susceptible to fraudulent promises like ‘guaranteed high returns at no risk’. These sales pitches are created to appeal to an investor’s fear of volatile markets and the desire to make quick high returns without any risk. There are no such investments. Remember, if it sounds too good to be true, it probably is. So keep an eye out for the Red Flags to investment scams. Do not let your fears pressure you into a new investment. Before you invest, do your homework. Thoroughly evaluate each investment opportunity. Make sure it is legitimate. Avoid scams.
These are similar alerts published by other securities regulators:
- NASAA – State Securities Regulators Remind Investors That Scams Often Hide Behind the Headlines
- Nova Scotia Securities Commission – Dealing with volatile markets
Give them a read. Be informed. Pass the information along to family and friends. Help them avoid scams. Remember, scams not only hurt the individual victims, but also their family, friends, and communities.
The BCSC is the independent provincial government agency responsible for regulating trading in securities within the province. If you have questions, contact Ken Gracey, Media Relations, 604-899-6577.
Our video called “What to Expect from Your Registered Investment Advisor” sets out new items that your advisor must include in client relationship documents you receive when you open an investment account. Generally, an investment advisor must include anything of interest to a reasonable client. These include: the possible types of accounts, such as cash, margin, […]