Five ways to avoid investment fraud

One of the concerns for new investors is how they can avoid investor fraud. After working so hard to earn your money, the last thing you want to do is lose it to a scammer because you’re just learning how to make your money work for you.

Here are five tips for how to avoid investment fraud.

1. Deal only with registered consultants: You want to make sure you’re dealing with someone legitimate who can actually help you grow your investments – and not take your money. You can check advisors’ registration through the Canadian Securities Administrators (CSA) National Registration Search or even through a provincial securities regulator such as the Ontario Securities Commission. You can also use the CSA’s Disciplined Persons List to find out if you’ve ever been in trouble with any securities regulator you’re interested in.
2. Get a second opinion: If you don’t know the person you chose, or you haven’t received a recommendation from friends or family who know the person, you might want to visit another source and see if You everything’ You heard that right. This is especially important if you haven’t requested the person who gave you a first opinion, which can happen if you get an offer over the phone or online, or even from an acquaintance. As mentioned above, you can find another registered, qualified consultant on the same list, but you can also talk to an attorney or accountant to protect yourself. If something feels bad, take the time to do your due diligence so you don’t regret it later.
3. Watch for fraud warning signs: Even if you are new to investing, there may be some early warning signs that you are dealing with a scammer. Be careful if the person promises:

• Easy, guaranteed money with high returns and low risk
• Hot tips where they have the ‘insider information’ that makes investing a sure bet
• foreign investment without tax
• that this is a time-limited offer, so you must buy now or you will miss out as the opportunity will quickly disappear
• Everyone’s Buying It, So You Should Too
• You Can Trust Them When You Don’t Know Them
• You won’t be sorry if you send money now

Remember, if it sounds too good to be true, it probably is – even if you’re polished enough to make that person look real.

4. ask questions: This applies to both fraudsters and investments. Do some research about what you want to know, and make a list of questions that apply to who you want to work with, how you want to invest, and what benefits or expectations you expect from investing. , then start asking.

Cheaters trust you not to do your homework, so they can disappear when you start asking. But, even when you do find the right and legitimate person to work with, make sure you ask questions about investing so you know what you’re buying and how it works. There are many different types of investments in the market right now, whether you’re working with a legitimate advisor or product salesperson, they should be happy to answer your questions and help you understand what you’re buying. If they’re not, it can also be a warning sign – even if it’s someone legitimate who won’t take the time to tell you what you want to know as any good advisor should be willing to help you. Financial literacy, so that you become an even more knowledgeable investor.

5. Take the time you need: This applies to many aspects of deciding whether you have the right advisor – and investing.

• Don’t let anyone pressure you for limited time offers. If the investment is legitimate, then you should not invest on the spot.
• Before putting your money to make any investment, it will take you time to understand how advisors and investments work and how you pay for the fees. Make sure it fits in with your financial goals and other investments. This is what your financial advisor can help you with — or will even do for you — so take your time to check it out.