Red flags and what to do

Red flags and what to do

Scam artists are cunning and use many tactics to take people’s hard-earned money. Don’t be fooled by promises of great returns and limited or no risk.

• Red flags
• What you can do
• How to avoid investment frauds and scams
• Contact the FCAA

Red flags:

• Unsolicited messages from strangers
• Unsolicited investment offers
• Too-good-to-be-true returns
• Pressure to act quickly
• Requests for payments or personal information
• Requests for large sums of money to unlock "earnings"
• Requests to keep the investment secret
• Requests to access your computer
• Pressure you to borrow money in order to invest

What you can do:

1. Be cautious when approached by strangers online. Scammers often work to develop a friendship or romantic relationship with their targets in order to build trust.
2. Always verify that the person or company offering the investment is registered in Saskatchewan. To check registration, visit The Canadian Securities Administrators’ National Registration Search at aretheyregistered.ca.
3. Check the disciplinary history for the person or company, to find out if they have broken regulatory rules in the past. It is easy to do, using the Canadian Securities Administrators Cease Trade Orders database and the list of disciplined people and companies.
4. Never send money to someone unless you have verified their identity.
5. Know exactly what you are investing in and make sure you understand how the investment, product, or service works.
6. Take time to research the investment, and see if it actually exists.
7. Do not feel pressured to make quick decisions.
8. Get a second opinion and seek professional advice about the investment.
9. Do not allow unknown or unverified individuals to remotely access your computer.
10. Ignore spam emails or calls.
11. Be suspicious of free products or gimmicks.
12. Never accept a verbal agreement, get it in writing.
13. Never give out your personal information to strangers.

Contact the FCAA

If you have questions or concerns about investments, you can contact the FCAA at 306-787-5645.