You can take steps to protect yourself and your loved ones against fraud.
What is investment fraud?
Has someone ever talked to you or e-mailed you about an investment that sounded too good to be true? If they used terms like “high return”, “no risk” or “one-time opportunity” to describe the investment, it may be a fraud. You can visit the Canadian Securities Administrators (CSA) website to learn about different types of investment fraud.
How you can avoid investment fraud
The most effective means to avoid investment fraud is to be aware and do your homework. Many fraudsters find their victims by joining social or community groups to build trust. Others prey on friends of friends.
No matter how you came in contact with the individual offering the investment, check to see that s/he is registered and is in good standing. Licensed financial advisors are overseen by regulators and are expected to know and comply with all laws and rules related to their business.
If you suspect investment fraud, report it
Contact your provincial or territorial securities commission if you’re suspicious about an investment or think you’ve been a victim of investment fraud. As a regulatory agency, your security commission cannot provide legal or financial advice, but can help you get the information and resources you need to combat investment fraud.
Although the investment funds industry is highly regulated, like every business there will be the odd bad apple. If you have any concerns or are uncomfortable about any security you are being offered by an advisor, you can:
- Call the dealer’s compliance department to discuss the situation
- Check for the discipline history of your MFDA advisor or if in Quebec, your AMF advisor
- Check the registration status of your advisor
- Conduct an internet search on both your advisor and the security you are being offered
- If you have a complaint call the MFDA at 1-888-466-6332 or the AMF at 1-877-525-0337 to report your concerns
Learn more about investment fraud