“Double your money.”
“Earn 500% annually, guaranteed.”
“Make money fast and easy.”
Whether it’s a Facebook ad, a comment on your favourite blog, or someone pushing an investment opportunity on Craigslist or Kijiji, investment scams are all over the internet.
Some are easier to spot than others. Most of us are no longer willing to send our hard earned money to a Nigerian prince - but the scammers know this, and they have gotten smarter. Now they lure you in with offers of “green” investments, guaranteed returns, government sanctioned accounts, and all kinds of vague promises.
Whether they are online or knocking at your door, the question is the same - why would you hand your money over to someone you don’t know, who doesn’t know you or your financial needs?
The internet is a quick and easy way for scam artists to find potential victims for their investment scams. With the internet, fraudsters can operate anonymously from anywhere in the world, making them hard to catch. Once you’ve given your money to an online scam artist, it’s likely gone for good.
Research your investments. The best way to protect your money is to be an informed investor. Before you buy any investment, find out as much as you can about it. Read financial documents like the prospectus and financial statements, which you can find on www.sedar.com.
Public companies and investment funds are required by securities law to file these and other documents on the System for Electronic Document Analysis and Retrieval (SEDAR).
You can also get information from:
- analysts’ reports
- financial newspapers and websites
- investment newsletters
- chat rooms and online communities
You can get a lot of useful information from these sources, but remember each source only forms part of the overall picture of a company. Be skeptical of what you read and check as many different sources as you can to get a more complete picture. You can also get a second opinion from an independent financial adviser.
Visit Nova Scotia Securities Commission’s website to check the registration of an individual or firm, and to find out if they have been involved in any disciplinary actions. You can also contact us to find out what your options are if you think you’ve been scammed.
Tagged as:
fraud,
internet,
scams
I try to follow themes in my blogging - this month was going to be all about new years resolutions and getting your finances in order. Budgeting. Saving. Financial planning. Then the Divorce Fair happened. Suddenly my writing and research made an unexpected turn. (For the record, I love when that happens.)
Tonight and tomorrow morning I will be exhibiting and presenting at the Divorce Fair - hosted by the Legal Information Society of Nova Scotia. I’ve gotten a wide variety of reactions to this. Surprise, amusement, even disgust (mostly from those who refuse to accept the fact that approximately 40% of Canadian couples will divorce).
Divorce is a stressful and painful time. It is a highly emotional process. You may be heartbroken. You may be angry. Your finances are likely the list thing you’ll want to think about - but they may be among the most important issues to focus on. It is extremely important to plan for your divorce. This is the message behind the Divorce Fair.
When most people talk about divorce, aside from custody issues, money is usually top of mind. Who got what, how much, and why? The division of money and assets is a major sticking point in many divorce proceedings. How do you prepare yourself for this? There are a few simple tips:
- 1. Know what you own (and owe). Make a list of your bank accounts, investment accounts, property and other assets you and your spouse own.
- 2. Gather the paperwork. Make copies of your financial papers: account statements, tax assessments, mortgage contracts, insurance policies, etc.
- 3. Be prepared for the costs of the divorce itself. If you are considering a divorce, be prepared and stash money away now to cover lawyers fees, alternate living arrangements, and other costs that may come up.
The other and significantly less known financial risk associated with a divorce or separation is financial fraud. To understand the link, let me remind you of the stress and emotional upheaval that comes with the divorce process. You are struggling to adjust to new financial realities, and in many cases you are managing your finances on your own for the first time, and making decisions you’ve never had to make before.
Sadly, no one is more aware of this than a con artist.
Results from last year’s CSA Investor Index indicated that almost half (46%) of investment fraud attempts were made to people undergoing major lifestyle changes - which included job losses, the death of a loved one, and divorce or separation.
The key to avoiding fraud is to be aware of your vulnerability and know the warning signs. Before you invest, educate yourself on investing basics to make smarter, safer choices, and learn to recognize the red flags of fraud before you become a victim.
Tagged as:
divorce,
education,
financial goals,
fraud,
scams
