Released on October 29, 2015
The Financial and Consumer Affairs Authority (FCAA) is warning Saskatchewan seniors to be aware of investment fraud scams.Roughly 30 per cent of investment fraud claims received by the FCAA’s Securities Enforcement Branch come from seniors. Unfortunately, this number could be significantly higher as much of investment fraud perpetrated against seniors goes unreported because they feel embarrassed or are afraid they’ll be judged incapable of handling their own finances.
“There’s no reason to be ashamed of being a victim, because unfortunately these fraudsters are extremely good at what they do,” FCAA Enforcement Branch Deputy Director Ed Rodonets said. “The best thing victims of investment fraud can do is report it, not just for themselves, but for others who may fall victim to the same fraudster in the future.”
Seniors make particularly attractive targets for investment fraud because they have a lifetime of savings in their bank accounts and are often concerned about having enough money for retirement. A common tactic scammers use on seniors is to promise guaranteed returns that will make them financially comfortable for the rest of their lives. The end result is usually the exact opposite.
When considering investments, Saskatchewan seniors should keep the following things in mind:
- Never rely solely on how friendly or trustworthy a salesperson appears or sounds;
- Thoroughly research the salesperson before you give them any money;
- Check www.aretheyregistered.ca to see if the salesperson you’re working with is registered to sell securities;
- Watch out for salespeople who push high-risk investments that don’t sound right for you, or who ask you to keep your investment a secret;
- Get an independent opinion from a third party you personally trust;
- Be wary of investments pitched as “once-in-a-lifetime offers”;
- Beware of cold calls and unsolicited emails recommending investments;
- If something sounds too good to be true, it probably is; and
- If you think you’re a victim of investment fraud, report it immediately.
For more information on investment fraud, visit www.fcaa.gov.sk.ca/investmentfraud/.
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For more information, contact:
Noel Busse
Financial and Consumer Affairs Authority
Regina
Phone: 306-798-4160
Email: noel.busse3@gov.sk.ca