Last week, we published new research that found 43% of people surveyed did not understand the trade-off between risk and return, which is a basic market principle – the higher an investment’s rate of return, the higher the risk.
We know that no risk, guaranteed investments promising high returns are commonly offered by scam artists. With the low returns investors have been experiencing over the past five years (we said less than 4% in the survey), it’s important to understand fraudsters don’t have to offer extremely high returns to get an investor’s attention these days.
This is why we running our “Be Fraud Aware” advertising campaign across the province. We want people to understand how to recognize and report investment fraud.
As a part of our online campaign, we created the video: Fraudster Exposed. In it, a fast-talking salesperson is shooting a commercial. On the surface, he seems like a well-intentioned financial advisor who is merely advertising another investment product.
However, as the video progresses, you will realize many of the features of this “product” indicate it is a scam. You will also find out his true colours in behind-the-scenes footage captured by the camera crew shooting the video.
We hope you enjoy the video and share it with friends and family members to show them how fraudsters target people and steal their money.
We also encourage you to enter our Fraud Challenge contest. It asks five questions to test your vulnerability to investment fraud. When you complete the contest, it will give you a score that you can share with your friends and family.
The CSA encourages all investors to participate in Check Registration Day on March 16, 2016.
Recently, I’ve noticed a couple of investment schemes reported in the news that were promoted on social media websites. In one case, the SEC charged an Illinois-based investment advisor with offering fictitious securities on LinkedIn, a well-known social media site used by professionals (including myself) to expand their networks and industry knowledge. The SEC is […]