8:52 am - Friday, February 21 2020
Home / Archives / Before You Invest / Top investment scams in Canada

This content is from our archive. It may be outdated, inaccurate or missing media.


Top investment scams in Canada

With October being Investor Education Month, the Canadian Securities Administrators (CSA) today released a list of five common “traps” scam artists use to entice investors across Canada. . Many of these tactics take advantage of those troubled by economic uncertainty and volatile markets. 1. Illegal sales of misleading exempt market securities. Private placements, or securities sold under an exemption, offer legitimate businesses the opportunity to raise funds by selling shares to a relatively small number of investors as opposed to a public offering made through national securities markets. Unfortunately, scam artists illegally raise money in the exempt market by offering misleading securities that often promise investors guaranteed or unrealistic returns with little or no risk. Furthermore, these individuals are often not registered to give investment advice or make securities transactions. 2. Energy investments. Swindlers continue to attempt to trick investors with the lure of untapped oil and gas reserves or new energy technologies, often using complex technical jargon to confuse the message. 3. Gold and precious metals. High precious metal prices and the promise of a “tangible” asset that will “never decrease” in value make gold and silver investing seem like a sure thing. Investors should be aware that there are no guarantees, even in legitimate markets. 4. Affinity fraud. Marketing a fraudulent investment scheme to members of a group or organization continues to be a highly successful and profitable practice for fraudsters. Investment decisions should always be made based on careful evaluation of the underlying merits rather than your relationship with the promoter or recommendations from friends and family. 5. High risk or false FOREX schemes:  Trading in foreign currencies requires knowledge and resources far beyond that of most investors. Con artists play on the complexity of the system, using jargon to confuse novice investors into risky trades. In some fraudulent schemes, securities may be sold, but investors’ money is not invested as promised or is simply stolen. The CSA urges investors to learn the warning signs of investment fraud and independently verify any investment opportunity and the background of the person and company offering the investment. Investors are reminded that while securities regulators cannot provide advice, they can provide background information about those who sell securities or give investment advice, as well as about the products being offered. Investors should always ensure an adviser and their firm are registered, and can verify registration online through the Canadian Securities Administrators’ National Registration Search. Investors can also visit the CSA’s website, www.securities-administrators.ca to search the Disciplined Persons list, read recent investor alerts, or take the Fraud Awareness Quiz. Related posts:Top investment schemes and scams of 2010-2011 The North American Securities Administrators Association (NASAA) has released its…All that glitters… Beware of gold investing scams The soaring price of gold has sparked a modern-day gold…Gold bullion and currency scams – Top 10 Investor Traps of 2009 The price of gold is high, and as a result,…Natural Resource Investment Scams – Top 10 Investment Traps of 2009 Natural resource investment scams have been on the rise recently,…Types of Investment Scams New types of investment scams appear every day. However, most…Tagged as: fraud, investing, Investor Alert, investor traps, scams Share & Bookmark This Story! Bookmark on Delicious StumbleUpon Google BookmarksTip’d

Source: http://feedproxy.google.com/~r/http/wwwbeforeyouinvestca/~3/LkyCur9kiBw/

About Haligonia Editors

See news happening near you? Tell us. Click here to email our team.


The views and opinions expressed in this content are those of the author and do not necessarily reflect those of haligonia.ca.

You might also like...

Kick start your financial health in 2013

The most common New Year’s resolutions are of course health related, but let’s not forget our financial health too. To help get you started in 2013 I put into practice the top tips to reduce household spending. I am excited to share my results...

Crowd Funding…what is it?

It’s a hot topic these days, but do we really know what crowdfunding is? Let’s start with a definition: The concept originated as an online money-raising strategy that began as a way for the public to donate small amounts of money, often...

Leave a Reply

Your email address will not be published. Required fields are marked *