Transcript Slide 1
Investing 101 – Part 3 Spotting Frauds and Scams www.investinknowingmore.ca Agenda • Introductions • Avoiding frauds and scams – Red Flags – Protect Yourself – Where does investment fraud show up online? – Protecting yourself online – What to do if you’re concerned www.investinknowingmore.ca Who is the NBSC? • NBSC – Crown corporation – Protect investors and foster capital markets – We also offer unbiased education information on about informed investing www.investinknowingmore.ca Who is at risk? There is no “typical victim ” of investment fraud. www.investinknowingmore.ca The Red Flags • • • • • • • • Guaranteed high returns / no risk High pressure sales tactics – “Act now!” Offshore or tax free Profit like the experts Your friends can’t be wrong Secrecy Overly consistent returns Unregistered activity www.investinknowingmore.ca Red Flags in action: Why a Ponzi fails www.investinknowingmore.ca Red Flags in Action • Profit like the experts – the exclusivity of the investment appealed to investors • Overly consistent returns – Madoff reported losses in only 7 months over a 14 year period • Secrecy – He refused to provide disclosure documents to investors who wanted to do their due diligence. www.investinknowingmore.ca How do I protect myself? • Avoid potential problems Check before you invest – Registration – Disciplinary history – Company history – News www.investinknowingmore.ca How do I protect myself? • Ask yourself: – Is the firm and individual registered? – Can I verify this investment with a credible source? – Is the risk I’m taking reasonable? – Is the opportunity based on facts? – Do I understand how the investment works? – Have I had time to make an informed decision? www.investinknowingmore.ca Investing Online - Where can fraud show up? • Online bulletin boards • Social media profiles • Social network messages/chat rooms/discussion boards • Email spam www.investinknowingmore.ca Online safety – Social Networks • Profiles – Social networks make victim profiling easier for scam artists – Advertising on social networks can be targeted to a very specific group – We connect with strangers and give them access to our personal information in a way we never would offline www.investinknowingmore.ca Online safety – Emails • Emails – Spelling errors and poor grammar – Redirect or fake links (hover over to check) • Take a moment to think about the message: – Do you even have an account at that bank? – Would your credit card company really email you about something as important as account access? – The CRA has never asked for your address. – Would someone REALLY send millions of dollars to a stranger? – Is the message sent to just you or multiple people? www.investinknowingmore.ca How do I protect myself online? • Don’t share personal details • Type your bank or social network’s website URL instead of clicking links • Do the same homework online as you would offline www.investinknowingmore.ca What to do if you’re concerned • Report any suspicions or concerns you have. • Check with us if you’re unsure – we’re here to help. www.investinknowingmore.ca Learn more! • www.investinknowingmore.ca • Facebook.com/4NBInvestors • Twitter: @4NBInvestors • Email: [email protected] • Toll free: 1 866 933-2222 www.investinknowingmore.ca