In case you weren’t aware, April 1 is All Fool’s Day – better known as April Fools Day. The internet is filled with pranks, hoaxes and scams on a regular day, but this day more than ever your inbox, news feed and twitter-stream will be filled with practical jokes, fake headlines and altered photos.
Enjoy the day, and amuse yourself with ScamBusters’ Top 10 List of History’s Greatest Internet Hoaxes.
Of course, it never hurts to be on guard for the real scams. Freshen up on the Red Flags of Inevstment Fraud, and don’t be fooled by a scammer.
Tagged as:
fraud,
fun,
scams
Today, the Canadian Securities Administrators (CSA) issued an investor watch to make investors aware of the significant risks involved in foreign currency exchange (Forex/FX) investments. Investors who trade Forex are also warned against dealing with unregistered firms offering Forex trading.
Forex trading can be complex, volatile and extremely risky and should only be entered into if investors are aware of the risks and prepared to lose their investment. Investors are advised to get expert advice from a registered professional before participating in Forex trading or purchasing a Forex-related investment.
Investors should be aware of the potential for fraud and avoid offers to trade Forex associated with any of these characteristics:
- a guarantee of little or no risk and high investment returns;
- dealers or brokers that are not registered with the provincial or territorial securities commissions, and typically are based outside of Canada where it can be difficult or impossible to protect or retrieve funds;
- an unwillingness to discuss the past performance or track record of the specialist traders who will purportedly handle their money;
- an unwillingness to identify specialist traders or traders located in offshore jurisdictions who will purportedly handle their money; and/ or
- high-pressure sales techniques to buy a Forex investment, to purchase software or take courses related to Forex trading.
The CSA have published a detailed document describing Forex and the various risks associated with this type of investment and has created a Forex resource page on its website, www.securities-administrators.ca . Investors can verify online whether an adviser and their firm are registered through the CSA’s National Registration Search.
Investing is risky enough without worrying about whether your salesperson is going to fleece you.
Be an informed investor, and know the warning signs to look out for. Some are subtle, and some are easier to spot.
Con Artists Like To Blend In
To be effective con artists must disguise their true motives. They will take great pains to look and sound familiar. They may try to reach you by joining your sports team, church or other association, and use the trust and common bond they build to spread the word about their questionable business dealings and reel in unsuspecting investors.
Con Artists Dress For Success
While a con artists wants you to believe that they are “just plain folk,” they’re also smart enough to realize that if they want you to part with your money, they must appear as smooth, professional and successful. They may dress like they are wealthy and work out of impressive looking offices. Your best bet is to look behind the surface and do some serious investigating before you part with your money.
Con Artists Bring Out The Worst In You
Skilled con artists can bring out your worst traits: greed, fear, and insecurity. They will try to make you feel inadequate if you don’t believe them or ask too many questions. They know that promises of huge returns with no risk will get your attention; they hope that it will get your money too.
Con Artists Are Fair Weather Friends
Before you invest, con artists are very friendly. They take a personal interest in you, call back when promised, always eager to tell you more good things about the investment. Once you have given them your money, things change, quickly. Personal contact dwindles and then stops altogether. If you can’t get answers to your questions after handing over your cash, there is a good chance someone else is getting rich off of your investment.
Con Artists Want You to Act Now
If you are promised high, guaranteed profits and given no written explanation of the investment, the promoter’s background or the risks involved, walk away. Never invest in anything based on the enthusiasm or charisma of the salesperson—they may have more to gain by taking your money than you know.
Con Artists Focus on the Silver Lining in the Storm
Every investment involves risk. But to hear the con artist explain it, you can’t lose. Be especially careful if the salesperson downplays any downside or denies that risk exists.
Don’t let a con artist steal your pot of gold. Large or small, you worked hard for that!
