Unfamiliar or unbelievable? Watch out for investment scams
Investment fraudsters and their scams have been around for decades. Unfortunately, the COVID-19 pandemic offered new opportunities for their nefarious activities. The Canadian Securities Administrators (CSA) have called attention to promoters of investments in bogus COVID-19 treatments and employment offers to work as unregulated stock sellers to those suffering job loss due to the pandemic.1
Experts offer the following advice to help you identify investment scams:
- The old adage about investments that sound “too good to be true” should be a warning to investors. According to the North American Securities Administrators Association (NASAA) the most common red flag is “guaranteed high returns with no risk.”
- If you haven’t heard of an investment or its seller, beware! The NASAA also says investors should watch out for investments and their sellers that are not registered.
If you find yourself drawn to a particular investment opportunity, talk to us first. One of the advantages of working with professional investment advisors is that we can help you steer clear of a potential investment mistake you might regret.
1Canadian Securities Administrators. Canadian Securities Regulators Warn Public of Coronavirus Related Investment Scams. Media release: March 2020.