Beware of Investment Scams

Описание: Investment scams are quickly becoming one of the most prominent scams in Canada.

These investments often seem too good to be true, and that’s because they are!

Investment scams are a wide range of deceptive practices that scammers use to induce investors to make investing decisions. These practices can include untrue or misleading information or fictitious opportunities.

In 2021, Canadians lost more than 88 Million dollars to these scams - Manitobans losing nearly $370,000!

Scammers will contact victims in a variety of ways, such as…
• unsolicited phone calls
• emails
• text messages
• or on various social media platforms

Some may use a technique known as “affinity fraud” to ingrain themselves within a community, establishing relationships that they will then exploit to get victims to invest in to their scheme.

These investment scams can cover any number of “opportunities” including:
• gold
• gems
• offshore investments
• new forms of cryptocurrency
• franchise and business opportunities

When looking at investing there are numerous red flags to watch for such as…
• Big promises of low risk/high return or guaranteed return investments.
• Unsolicited investment opportunities.
• High-pressure sales or attempts to have you make a quick decision.
• Someone claiming to have “insider” information.
• An unregistered trader
• Spelling mistakes or incorrect grammar in messages, emails and websites.
• Offers to hide your investments from the “man” or to help you avoid taxes

The good news is there are ways to protect yourself! Make sure to…
• Check the name of any person to sell you investments or stocks on mbsecurities.ca
• Research opportunities and investments to determine their legitimacy.
• Avoid making payments using unusual payment methods such as gift cards, wire transfers or cryptocurrency.

Slow down and ask a trusted individual for help. Family member or friend, lawyer, accountant or financial planner.

We all have a role to play in fraud prevention!