News

Tips to avoid investment scams

May 02, 2023

Don’t get scammed.

 

Investment scams are one type of fraud that you can protect against. You may get invited to an investment seminar or be introduced to a so-called opportunity through an existing group you’re part of. These situations can be enticing—often, presenters are skilled motivational speakers and will use high-pressure tactics. Here are some general tips to help you avoid investment scams:

 

  • Before you invest, get a second opinion from a registered, qualified advisor, a lawyer or an accountant.
  • Generally, anyone selling securities or offering investment advice must be registered with their provincial securities regulator. You can check through the Ontario Securities Commission or Canadian Securities Administrators.
  • Be suspicious of time-limited offers and high-pressure salespeople. You should not have to invest on the spot if the investment is legitimate.
  • Before investing, understand how it works, the risks and any fees. Make sure it fits with your financial goals and your other investments. Working with a qualified advisor can help.

 

These tips are adapted from GetSmarterAboutMoney.ca by the Ontario Securities Commission.

 

You can report fraud to local law enforcement and contact the Anti-Fraud Centre at antifraudcentre-centreantifraude.ca or call toll-free at 1-888-495-8501.