Before You Invest » Fraud Prevention https://beforeyouinvest.ca A Guide to Safe Investing and Fraud Prevention from the Nova Scotia Securities Commission Thu, 02 Jun 2011 16:18:03 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 Saturday is Law Day in Nova Scotia https://beforeyouinvest.ca/2011/04/law-day-at-the-provincial-courthouse/ https://beforeyouinvest.ca/2011/04/law-day-at-the-provincial-courthouse/#comments Wed, 13 Apr 2011 14:42:47 +0000 Natalie MacLellan https://beforeyouinvest.ca/?p=1395 Please join us Saturday April 16th for Law Day at the Provincial Courthouse, 5250 Spring Garden Road, from 10:00 AM to 3:00 PM, for fun family activities and exhibits.

About Law Day

Law Day is a time for the public to learn about the law, the legal profession and some of the legal institutions that form the cornerstones of our Canadian democracy.

Organized by the Canadian Bar Association, Law Day’s general theme is Access to Justice. The CBA – through Law Day – offers the public an opportunity to learn about the law and the legal system. Law Day/Law Week is marked by projects and activities taking place across the country.

Law Week in Nova Scotia is represented by the theme, Citizenship – Here for Good! The goal is to improve citizens understanding of the fundamental rights and freedoms that they receive as Canadians, as well as to highlight the responsibilities that come with citizenship. Legal processes have a role in the protection of these rights and freedoms, as well as sometimes an enforcement role in relation to the responsibilities.

Law Day is made possible through the efforts of hundreds of lawyers who donate thousands of hours of volunteer time to the event.

Schedule

10:00 am – 3:00 pm: Displays by exhibitors, face painting, tours of cells, car demonstrations, games and prizes. Come check out interactive displays and learn about your legal rights and obligations as a citizen!

10:00 am – 10:20 am: Opening Ceremony Courtroom 4

  • Town Crier announces Law Day.
  • Welcoming Remarks – Minister of Justice, the Honourable Ross Landry and Honourary Law Day Co-Chair, the Honourable Judge Castor Williams.
  • Presentation of Law Day Award – Voice of Youth in Care Newsletter Project.

Starting at 10:30 am: Tour of the Lock-up Area Sheriff’s Office

  • Tours will continue throughout the day on a 30 minute schedule, with the last scheduled tour being at 2:30 pm.

10:30 am – 11:15 am: Provincial Court – Mock Criminal Docket Courtroom 4

  • Honourable Judge Castor Williams Presiding
  • Representing the Crown – Susan McKay, Public Prosecution Service
  • Representing the Defence – Matthew Darrah, Dalhousie Legal Aid

11:30 am – 12:15 pm: Mock Military Summary Proceeding Hearing, Military Tent

  • Lunch available afterwards in the Tent.

1:00 pm -2:00 pm: Book Reading – Pamela Callow Courtroom 4

  • A reading from her second book in the Kate Lange series, Indefensible, followed by an audience
  • Q&A.

Closing Ceremony Courtroom 4

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Mini Scam Jam in Bridgewater, NS https://beforeyouinvest.ca/2011/04/mini-scam-jam-in-bridgewater-ns/ https://beforeyouinvest.ca/2011/04/mini-scam-jam-in-bridgewater-ns/#comments Mon, 11 Apr 2011 14:57:06 +0000 Natalie MacLellan https://beforeyouinvest.ca/?p=1388 Please join us tomorrow at the Bridgewater Fire Hall for a Mini Scam Jam, hosted by the Better Business Bureau of the Maritimes. Learn about the top scams in the Maritimes, browse information booths and hear presentations from anti-fraud experts. We will be discussing investment fraud – how to recognize it and avoid it.

Also exhibiting/presenting are:

  • The Better Business Bureau
  • The Bridgewater Police Services
  • The Bank Of Canada
  • The Nova Scotia Department of Seniors
  • The Nova Scotia Office of the Ombudsman
  • RCMP – Federal Enforcement Section
  • RCMP – Commercial Crimes Section

Hope to see you!

When:   April 12, 2011

Where:  Bridgewater Fire Hall, 81 Dominion St

Time:    10am to 12pm

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Win a $50 restaurant gift card in Fraud Prevention Month trivia https://beforeyouinvest.ca/2011/03/win-a-50-restaurant-card-in-fraud-prevention-month-trivia/ https://beforeyouinvest.ca/2011/03/win-a-50-restaurant-card-in-fraud-prevention-month-trivia/#comments Mon, 28 Mar 2011 15:12:07 +0000 Natalie MacLellan https://beforeyouinvest.ca/?p=1366 March is Fraud Prevention Month, and to spread fraud awareness and knowledge across Atlantic Canada, we have joined with the Better Business Bureau of the Maritimes, New Brunswick Securities Commission and the Bank of Canada (Atlantic Region) to host an online fraud prevention trivia contest.

From March 2 to March 29 we’re giving away great prizes including gift cards for local restaurants, Chapters and iTunes, and commemorative editions of Canadian currency!

Learn how to play (link to simple rules)

Official contest rules

Monday, 28 March 2011

Today’s Trivia question is brought to you by the New Brunswick Securities Commission.

Answer the question below for your chance to win a $50 gift-certificate for local restaurants. Draw takes place Wednesday, 30 March 2011.

QUESTION OF THE DAY:

What is affinity fraud?

Click here to visit the NBSC page on affinity fraud to find the answer, and visit www.investinknowingmore.ca to provide your answer.

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Another new Fraud Prevention Month trivia question https://beforeyouinvest.ca/2011/03/another-new-fraud-prevention-month-trivia-question/ https://beforeyouinvest.ca/2011/03/another-new-fraud-prevention-month-trivia-question/#comments Thu, 17 Mar 2011 13:43:40 +0000 Natalie MacLellan https://beforeyouinvest.ca/?p=1347 March is Fraud Prevention Month, and to spread fraud awareness and knowledge across Atlantic Canada, we have joined with the Better Business Bureau of the Maritimes, New Brunswick Securities Commission and the Bank of Canada (Atlantic Region) to host an online fraud prevention trivia contest.

From March 2 to March 29 we’re giving away great prizes including gift cards for local restaurants, Chapters and iTunes, and commemorative editions of Canadian currency!

Learn how to play (link to simple rules)
Official contest rules

Wednesday, 16 March 2011
Today’s Trivia question is brought to you by  the New Brunswick Securities Commission.

Answer the question below for your chance to win a $50 gift certificate to local restaurants. Draw takes place Friday, 18 March 2011.

QUESTION OF THE DAY:

What are two ways to spot a scam artist?

Click here to visit the NBSC’s resource on how to spot a scam artist.

Visit www.investinknowingmore.ca to provide your answer.

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New trivia question – Fraud Prevention Month contest https://beforeyouinvest.ca/2011/03/new-trivia-question-fraud-prevention-month-contest-2/ https://beforeyouinvest.ca/2011/03/new-trivia-question-fraud-prevention-month-contest-2/#comments Mon, 14 Mar 2011 13:00:17 +0000 Natalie MacLellan https://beforeyouinvest.ca/?p=1335 March is Fraud Prevention Month, and to spread fraud awareness and knowledge across Atlantic Canada, we have joined with the Better Business Bureau of the Maritimes, New Brunswick Securities Commission and the Bank of Canada (Atlantic Region) to host an online fraud prevention trivia contest.


From March 2 to March 29 we’re giving away great prizes including gift cards for local restaurants, Chapters and iTunes, and commemorative editions of Canadian currency!

Learn how to play (link to simple rules)
Official contest rules

Monday, 14 March 2011
Today’s Trivia question is brought to you by the New Brunswick Securities Commission.

Answer the question below for your chance to win a $50 gift certificate redeemable at select local restaurants. Draw takes place Friday, 18 March 2011.

QUESTION OF THE DAY:
What are the four steps you should follow to check an investment before handing over any money?

Click here to visit the NBSC background check to find the answer.

Visit www.investinknowingmore.ca to provide your answer.

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New Trivia Question – Fraud Prevention Month Trivia https://beforeyouinvest.ca/2011/03/new-trivia-question-fraud-prevention-month-trivia/ https://beforeyouinvest.ca/2011/03/new-trivia-question-fraud-prevention-month-trivia/#comments Wed, 09 Mar 2011 18:36:40 +0000 Natalie MacLellan https://beforeyouinvest.ca/?p=1318 March is Fraud Prevention Month, and to spread fraud awareness and knowledge across Atlantic Canada, we have joined with the Better Business Bureau of the Maritimes, New Brunswick Securities Commission and the Bank of Canada (Atlantic Region) to host an online fraud prevention trivia contest.


From March 2 to March 29 we’re giving away great prizes including gift cards for local restaurants, Chapters and iTunes, and commemorative editions of Canadian currency!

Learn how to play (link to simple rules)
Official contest rules

Wednesday, 9 March 2011
Today’s Trivia question is brought to you by  the Bank of Canada.

Answer the question below for your chance to win a $5 commemorative bill from the Bank of Canada. Draw takes place Friday, 11 March 2011.

QUESTION OF THE DAY:
What four actions help to ensure that your bill is real?

a) Touch, tilt, look at, fold
b) Touch, tilt, look through, look at
c) Touch, look at, fold, rub on white paper
d) Touch, look through, fold, rub on white paper

Click here to visit the Bank of Canada website to find the answer.

Visit www.investinknowingmore.ca to provide your answer.

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New trivia question – Fraud Prevention Month Contest https://beforeyouinvest.ca/2011/03/new-trivia-question-fraud-prevention-month-contest/ https://beforeyouinvest.ca/2011/03/new-trivia-question-fraud-prevention-month-contest/#comments Mon, 07 Mar 2011 19:05:04 +0000 Natalie MacLellan https://beforeyouinvest.ca/?p=1301 March is Fraud Prevention Month, and to spread fraud awareness and knowledge across Atlantic Canada, we have joined with the Better Business Bureau of the Maritimes, New Brunswick Securities Commission and the Bank of Canada (Atlantic Region) to host an online fraud prevention trivia contest.
From March 2 to March 29 we’re giving away great prizes including gift cards for local restaurants, Chapters and iTunes, and commemorative editions of Canadian currency!

Learn how to play (link to simple rules)
Official contest rules

Monday, 7 March 2011
Today’s Trivia question is brought to you by  the Bank of Canada.

Answer the question below for your chance to win a $5 commemorative bill from the Bank of Canada. Draw takes place Friday, 11 March 2011.

QUESTION OF THE DAY:
Which of the following materials have been used to produce Bank of Canada bank notes?

a) Flax

b) Cotton
c) Linen
d) All of the above

Click here to visit the Bank of Canada website to find the answer.

Visit www.investinknowingmore.ca to provide your answer.

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Canadian securities regulators caution against online investment fraud https://beforeyouinvest.ca/2011/03/canadian-securities-regulators-caution-against-online-investment-fraud/ https://beforeyouinvest.ca/2011/03/canadian-securities-regulators-caution-against-online-investment-fraud/#comments Thu, 03 Mar 2011 19:33:50 +0000 Natalie MacLellan https://beforeyouinvest.ca/?p=1293 To kick-off Fraud Prevention Month in March, the Canadian Securities
Administrators (CSA) are encouraging investors to protect themselves from investment
fraud of all types, and to be specifically wary of online fraud.
Online investment scams are a simple, anonymous, cost-effective way for scammers to
reach millions of potential victims who are looking on the web for investment
opportunities. A recent survey shows more than one-third (34 per cent) of Canadians are
or are considering online investing as a way to make and manage their investments. Six
out of ten online investors state that the media is their number one source for information,
and half use general web searches.
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“The CSA’s enforcement actions confirm that Canadian investors have been victims of
fraudulent online investment schemes,” says Bill Rice, Chair of the CSA and Chair and
CEO of the Alberta Securities Commission. “We want to remind investors to look
beyond slick, professional looking websites and unsolicited emails, do more research and
seek a second opinion before investing in any opportunity.”
The recently released 2010 CSA Enforcement Report acknowledges the growing trend of
online investment fraud and highlights how CSA members are using online tools and
social media to fight back. In the Genius Funds case, Canadian securities regulators acted
quickly to stop the illegal sales of securities being promoted online and used blogs and
other social media to warn investors about the scheme. As well, CSA jurisdictions have
previously taken enforcement action against those who promoted fictitious oil and gas
activities through false websites for Al-Tar and Alberta Energy Corp. and raised more
than $650,000 from investors throughout Canada and Britain.
Canadians are encouraged to visit the CSA’s Avoiding Fraud website page, to learn more
about investment fraud and the basics of investing at www.securities-administrators.ca.
The CSA continues to participate as a partner in the Fraud Prevention Forum, joining
more than 90 private sector firms, consumer and volunteer groups, and government and
law enforcement agencies that are committed to educating the public and fighting fraud
targeted at consumers and businesses.   Throughout the month of March, these
organizations will be involved in a number of national, regional and local activities
supporting fraud prevention.

To kick-off Fraud Prevention Month in March, the Canadian Securities Administrators (CSA) are encouraging investors to protect themselves from investment fraud of all types, and to be specifically wary of online fraud.

Online investment scams are a simple, anonymous, cost-effective way for scammers to reach millions of potential victims who are looking on the web for investment opportunities. A recent survey shows more than one-third (34 per cent) of Canadians are or are considering online investing as a way to make and manage their investments. Six out of ten online investors state that the media is their number one source for information, and half use general web searches.*

“The CSA’s enforcement actions confirm that Canadian investors have been victims of fraudulent online investment schemes,” says Bill Rice, Chair of the CSA and Chair and CEO of the Alberta Securities Commission. “We want to remind investors to look beyond slick, professional looking websites and unsolicited emails, do more research and seek a second opinion before investing in any opportunity.”

The recently released 2010 CSA Enforcement Report acknowledges the growing trend of online investment fraud and highlights how CSA members are using online tools and social media to fight back. In the Genius Funds case, Canadian securities regulators acted quickly to stop the illegal sales of securities being promoted online and used blogs and other social media to warn investors about the scheme. As well, CSA jurisdictions have previously taken enforcement action against those who promoted fictitious oil and gas activities through false websites for Al-Tar and Alberta Energy Corp. and raised more than $650,000 from investors throughout Canada and Britain.

Canadians are encouraged to visit the CSA’s Avoiding Fraud website page, to learn more about investment fraud and the basics of investing at www.securities-administrators.ca.

The CSA continues to participate as a partner in the Fraud Prevention Forum, joining more than 90 private sector firms, consumer and volunteer groups, and government and law enforcement agencies that are committed to educating the public and fighting fraud targeted at consumers and businesses.   Throughout the month of March, these organizations will be involved in a number of national, regional and local activities supporting fraud prevention.

*Bank of Montreal InvestorLine survey, July 2010.

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Learn to avoid fraud – and win great prizes https://beforeyouinvest.ca/2011/03/learn-to-avoid-fraud-and-win-great-prizes/ https://beforeyouinvest.ca/2011/03/learn-to-avoid-fraud-and-win-great-prizes/#comments Wed, 02 Mar 2011 14:12:49 +0000 Natalie MacLellan https://beforeyouinvest.ca/?p=1283 Wait… that sounds a little fishy, doesn’t it?

We promise, this one is legit. March is Fraud Prevention Month in Canada. To spread fraud awareness and knowledge across Atlantic Canada, we have partnered with the Better Business Bureau of the Maritimes, the New Brunswick Securities Commission and the Bank of Canada (Atlantic Region) to host an online fraud prevention trivia contest.

From March 2 to March 29 we’re giving away great prizes including gift cards for local restaurants, Chapters and iTunes, and commemorative editions of Canadian currency! Each Monday and Wednesday during the contest period we will post a trivia question. Find the right answer, and you could win that day’s sponsored prize. Learn about fraud, and win great prizes. It’s a win-win situation.

Learn how to play (link to simple rules)

Official contest rules

Wednesday, March 2, 2011

Today’s Trivia question is brought to you by us, the Nova Scotia Securities Commission.

Answer the question below for your chance to win a $50 Chapters gift card. Draw takes place Friday, March 4, 2011.

QUESTION OF THE DAY:

What are 3 of the red flags of fraud?

Not sure? You might find your answer on our Fraud page.

Please note: When you find the correct answer, visit www.investinknowingmore.ca to submit your answer.

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New Year’s Resolutions: Read your monthly account statements! https://beforeyouinvest.ca/2011/01/new-years-resolutions-read-your-monthly-account-statements/ https://beforeyouinvest.ca/2011/01/new-years-resolutions-read-your-monthly-account-statements/#comments Tue, 11 Jan 2011 18:31:20 +0000 Natalie MacLellan https://beforeyouinvest.ca/?p=1161 I freind once told me he doesn’t read his monthly investment account statements because he doesn’t want to micro-manage his account. His investment goals are long-term, and if he gets too wrapped up in day-to-day or month-to-month changes in his account value, he tends to make rash decisions.

I understand the point he was making, and it is good to know yourself and how to control potential bad investing impulses. However, I do think his solution was flawed. If you only check in on your account once or twice a year, you are not only making yourself more vulnerable to fraud, but you might also miss administrative errors in your file which may be costing you money. I have worked in brokerage firms. Mistakes happen. Sometimes they are caught and fixed immediately by staff, sometimes they are not. It is the client’s responsibility to monitor their statements and report errors.

If you are not in the habit of reading and reviewing your monthly investment (or banking) statements already, we suggest you make it one of your 2011 resolutions. If you find the statement confusing, ask your adviser or their assistant to walk you through the document. Make notes. Then file each one and compare month to month. If you are confused by changes, call your adviser for clarification. Don’t panic, but take the time to discover what is happening and why.  Your goal for 2011 should be to gain a better understanding of your portfolio, and how it is helping you to reach your goals.

While my friends solution to his panicking may have made him feel better, it also put him at greater risk. In the end, if this process upsets you too much, it is probably a good sign that you are invested in products too risky for you, and you may want to make changes.

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New Year’s Investing Resolutions: Check your credit report – for free https://beforeyouinvest.ca/2011/01/new-years-investing-resolutions-check-your-credit-report-for-free/ https://beforeyouinvest.ca/2011/01/new-years-investing-resolutions-check-your-credit-report-for-free/#comments Wed, 05 Jan 2011 16:42:40 +0000 Natalie MacLellan https://beforeyouinvest.ca/?p=1153 The new year is traditionally a time when everyone vows to make changes and start fresh. Often these changes are financial in nature – one of my resolutions is to pay off the last of my student loan incurred while earning my Investment Management diploma. It’s a small but reasonable goal, but will make me feel much better about my finances. If I continue to pay it at the rate suggested by the bank, it’ll take almost five years. I want it paid by the end of 2011.

Have you made financial resolutions? In case you don’t know where to start, we have a few suggestions to share over the coming weeks. Today’s resolution was inspired by a Globe and Mail article: It’s easy to get a free credit report. Honest!

It’s true. It is easy, it is free, and we highly recommend it.

Being familiar with your credit history is an important step in preventing fraud. If someone has access to your personal information, they could steal your identity and obtain credit in your name. Regularly monitoring your credit report can help you spot fraudulent accounts made in your name. Trust me – it happened to me many years ago. Thankfully, in my case, it was caught by the staff of my credit union who pulled my credit history when I was applying for a credit card. Removing the fraudulent account from my report was a long and frustrating process. Don’t let it happen to you.

Aside from fraud, checking your credit history also protects you from human error. The first time I ever checked my credit report I was a recent university grad, wondering if I could qualify for a personal loan. I was shocked to discover my report listed not only my student loans – but my sister’s as well. We have similar names, and similar social insurance numbers. Someone, somewhere decided we were the same person, and so I was on file with the crushing debt load of not one but two bachelor’s degrees! Luckily this was an easier fix than the fraud case, and was fixed as soon as I provided her social insurance number (perhaps not so lucky if she’d been a stranger).

So the lesson here is the report is free and there is a process in place to fix errors, so long as you know they are there. So order your report – just remember, it can take time to fix and error or prove a fraud. Don’t wait until you are denied a loan due to an error or fraud on your report – resolve to check your credit history now, and check regularly.

The contact info (taken from the Globe article) is as follows:

Equifax: 1-800-465-7166

TransUnion: 1-800-663-9980

Mail in forms:

Equifax credit report request form

TransUnion credit report request form

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This week in investing and personal finance https://beforeyouinvest.ca/2010/12/this-week-in-investing-and-personal-finance-15/ https://beforeyouinvest.ca/2010/12/this-week-in-investing-and-personal-finance-15/#comments Fri, 17 Dec 2010 17:53:55 +0000 Natalie MacLellan https://beforeyouinvest.ca/?p=1144 Well, that special time of year is certainly upon us, isn’t it? Yes, flu season is in full swing. (Did you think I meant something else?) Folks are dropping like flies around here, and I missed half the week myself. Luckily, scanning the finance blogs is easy to do from the comfort of your couch, and there was lots to keep me busy reading.

The Canadian government had a big announcement this week, as Minister Flaherty pitched a private pension plan for small businesses and the self-employed.

Jonathan Chevreau gets right to the point about cutting costs in It’s easy: Just stop your spending in the Financial Post.

Alan at the Canadian Finance Blog posted a review of Mint.com in Canada.

The Investment Executive reported on a recent Bank of Montreal survey which says that 70% of Canadian RRSP owners don’t know what they are invested in.

Clark at Million Dollar Journey warns against lending money to friends.

Miranda at Financial Highway discusses couples’ finance in Are You Ready to Open a Joint Account?

And from south of the border, Ryan Guina at the Military Wallet tells you How To Calculate Your Net Worth. (I did this earlier this week. It was a great excercise, and I came out better than I imagined!)

Thanks are due this week to Jim Yih who included our post Beware illegal foreign lottery scams in his Best of the Blogs roundup.

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Beware illegal foreign lottery scams https://beforeyouinvest.ca/2010/12/beware-illegal-foreign-lottery-scams/ https://beforeyouinvest.ca/2010/12/beware-illegal-foreign-lottery-scams/#comments Thu, 16 Dec 2010 17:34:46 +0000 Natalie MacLellan https://beforeyouinvest.ca/?p=1138 It may just be the time of year. Everyone is sending like mad, and most everyone wishes they had just a little more room in their holiday budget. Maybe that explains why my email has been full of ridiculous lottery scams on the past few weeks.

The offers are coming to my personal address and my home address. They all read pretty much the same:

“We are writing to inform you that your email address has been chosen to win the UK National Lottery.” (Other countries are sometimes chosen, but the UK National Lottery seems to have a particular liking for me.) The letter lists a very large and tempting dollar amount. Last week I was also told I won a BMW.

The letter then explains that it is from a firm which has been hired by the lottery to distribute the winnings. To claim my prize I must pay a small administration fee to the firm, usually about 25 dollars.

Except of course, I work in fraud prevention. I know that those who do respond and pay are then placed on mailing lists for other scams, never receive their prize and are out $25 dollars. Or more. Often the scam does not stop there.

Next, the “winner” who responded might receive a letter from a phony collection agency, demanding payment for lottery ticket purchases. Of course, you know you never bought a lottery ticket in the first place. How then could you win? And why would you pay for it after the fact? But those duped into believing they have won will pay up, in fear of legal action, and losing their winnings.

My lottery scam invitations have been coming by email, but many still come by traditional post, and seniors are particularly victimized by this scam.

An interesting twist that I wasn’t aware of until a recent discussion with a colleague in the RCMP, is that participaton in foreign lotteries is illegal in Canada.

According to sections 206 and 207 of the Criminal Code, anyone who makes, prints, advertises, publishes or participates in a foreign lottery is guilty of an offence punishable on summary conviction. This is true even if the offer to purchase tickets is from Canada.

So next time a friend or family members believes they have won big in a foreign lottery, please remind them that there is a 99.9% chance this offer is a scam – and even in the rare case that it is not, it is illegal to participate and they could be charged.

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Inflation: what’s the big deal? https://beforeyouinvest.ca/2010/11/inflation/ https://beforeyouinvest.ca/2010/11/inflation/#comments Tue, 23 Nov 2010 15:27:41 +0000 Natalie MacLellan https://beforeyouinvest.ca/?p=1076 Today, the Globe and Mail reported that inflation in Canada has hit a two-year high of 2.4%. In response, I thought it was about time to discuss what inflation is, and what does it mean for the average Canadian?

Inflation is a rise in general level of prices for goods and services over a period of time. When inflation rises in Canada, our dollar buys fewer goods and services, which is referred to as a loss of purchasing power. For example, if the inflation rate is 2%, then a $1 pack of gum will cost $1.02 in a year.

Inflation in Canada is measured by the Consumer Price Index (CPI), a broad measure of the cost of living in Canada. Through the monthly CPI, Statistics Canada tracks the retail price of a representative shopping basket of about 600 goods and services used by the average household: food, housing, transportation, furniture, clothing, and recreation. Each category represents a different portion of the basket, based on typical spending patterns. Since people tend to spend more on food than clothing, changes in the price of food have a bigger impact on the index than changes in the price of clothing and footwear.

How is the CPI calculated?

Current prices are measured against a base year. The base year is currently 2002, and the basket for that year is given the value of 100. In 2009 the CPI had reached 115.5, meaning what you could buy for $100 in 2002 cost $115.50 in 2009. The Bank of Canada website has an interactive Inflation Calculator that uses monthly CPI figures from 1914 to the present to show users the impact of inflation on purchasing power.

What does that mean for investors?

Inflation affects the value of your money over time. Since prices generally increase over time, the value of your money decreases. Investing is an attempt to increase the value of your money over time. At minimum, you want your rate of return to be higher than the rate of inflation. If your money is sitting in a savings account making 1.5% interest, but inflation is 2.5%, you have actually lost purchasing power!

Thursday, we will look closer at how the Bank of Canada monitors and manages the inflation rate, aiming for a trget of 2% a year.

Any further questions about inflation, interest rates or the CPI? Feel free to ask below.

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New website for the Canadian Anti Fraud Centre https://beforeyouinvest.ca/2010/11/new-website-canadian-anti-fraud-centre/ https://beforeyouinvest.ca/2010/11/new-website-canadian-anti-fraud-centre/#comments Wed, 10 Nov 2010 17:57:43 +0000 Natalie MacLellan https://beforeyouinvest.ca/?p=1059 The Canadian Anti-Fraud Centre estimates that between $10 and $30 billion dollars are lost each year to frauds in Canada, a figure comparable to drug trafficking revenues. Shockingly, only 5% of people who’ve been victimized ever report it – most don’t think it will help.

Originally known as PhoneBusters, the Canadian Anti Fraud Centre is Canada’s one-stop-shop for fraud reporting. To serve you better, the organization has just launched its new website at www.antifraudcentre.ca.

What exactly does the Canadian Anti Fraud Centre do? Each year, they receive tens of thousands of calls and e-mail messages from consumers all across Canada and the USA. Anti-fraud specialists work to help callers protect themselves from being victimized by identity crimes and other fraud schemes.

The Centre’s intelligence team analyze the collected fraud information and prepare reports, which are then shared with law enforcement agencies across the country. This information allows investigators in one province to see how frauds they’re working on are connected to frauds taking place in other parts of the country – or in other parts of the world. This enables police officers to crack complex cases and ultimately make arrests.

Keep in mind, the Centre is not an investigative agency – if you’re a fraud victim, you must contact your local police force if you want the crime investigated. If you are reporting investment fraud, contact your securities regulator. However, if you want to help shut down the organized crime groups responsible for the most lucrative, large-scale frauds, be sure to contact the Canadian Anti Fraud Centre as well. The more people who report, the greater the chance of shutting down the criminals responsible for scams.

For the latest on emerging fraud trends, advice on protecting yourself , and victim’s guides that will help you recover from fraud loss, visit the Canadian Anti Fraud Centre’s new website at: www.antifraudcentre.ca

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National Senior Safety Week https://beforeyouinvest.ca/2010/11/national-senior-safety-week/ https://beforeyouinvest.ca/2010/11/national-senior-safety-week/#comments Tue, 09 Nov 2010 18:22:42 +0000 Natalie MacLellan https://beforeyouinvest.ca/?p=1055 November 7-13 is National Senior Safety Week in Canada. This year’s theme, “Preventing Elder Abuse,” provides an opportunity for Canadians to learn more about elder abuse and the safety precautions that seniors can take to maintain their independence.

The Canadian government estimates that between four and ten percent of seniors in Canada experience some kind of abuse, though with reporting rates being very low, it is likely that these numbers underestimate the problem.

Elder abuse may include neglect and physical abuse, sexual, psychological or emotional abuse, or even financial abuse.

One of the most devastating and costly forms of senior financial abuse — investment fraud — is often carried out by trusted financial advisers or even family and friends.

Seniors are increasingly targeted by con artists using investment pitches, often in a place the senior believes to be a safe setting like church, a social club, or through supposedly educational “free lunch” seminars.

Help seniors spot and stop financial abuse and exploitation by knowing what to look for and who to call for assistance. Call the Nova Scotia Securities Commission (or your local securities regulator) if you believe that you or someone you know may be the victim of financial abuse or exploitation through an investment scam.

Help stop senior abuse in all its forms. The following resources from the government of Nova Scotia may be of assistance:

Senior Abuse Line: 1- 877- 833- 3377

Call the Senior Abuse Line for information or to talk about a situation of abuse. Your call will be kept confidential.

Police: 911 for emergencies only

Abuse may be a crime and fall under the Criminal Code. Call your local police station for information or to report abuse. If the situation is an emergency or if it could be dangerous, call 911.

Adult Protection: 1- 800- 225- 7225

If you know of a senior in need of protection, call Adult Protection Services at the Department of Health. Adult Protection workers can intervene and offer services to help those in need of protection.

Protection of Persons in Care: 1- 800- 225- 7225

Report known or suspected cases of abuse in a licensed health facility (such as a nursing home, residential care facility, or hospital) to the Protection of Persons in Care office at the Department of Health.

For general inquiries related to senior abuse or to talk about a situation of abuse, you can also e-mail [email protected]

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This week in investing and personal finance https://beforeyouinvest.ca/2010/11/this-week-in-investing-and-personal-finance-9/ https://beforeyouinvest.ca/2010/11/this-week-in-investing-and-personal-finance-9/#comments Fri, 05 Nov 2010 17:52:04 +0000 Natalie MacLellan https://beforeyouinvest.ca/?p=1051 Well, it has been a busy week for the Nova Scotia Securities Commission.

Yesterday, the Commission settled with former Knowledge House Inc. executive Raymond G. Courtney, who admited to violations of various securites laws. Read more in the Chronicle Herald story Knowledge House director fined $15,000.

We’ve also been featured in the Chronicle Herald, on News 95.7 in Halifax, and in Jim Yih’s the Best of the Blogs regarding a diamond investing scam which is targeting Nova Scotians, as well as the rest of Canada.

We weren’t the only one’s busy this week. There’s lots of great reading out there for you.

2 Cents at the Balance Junkie writes a thought provoking article asking what is a balanced portfolio?

Financial Highway presents a different approach to the same topic, in thier post about just how critical asset allocation can be.

Jim Yih at the Canadian Finance Blog presents Tips To Prevent Running Out Of Money In Retirement.

Frugal Dad discusses How To Clean Up Your Financial Indiscretions.

Gail Vaz-Oxlade writes about the personal side of personal finance in Money and Self.

Enjoy the reading, and your weekend.

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Diamond investing scam targets Nova Scotia https://beforeyouinvest.ca/2010/11/diamond-investing-scam-targets-nova-scotia/ https://beforeyouinvest.ca/2010/11/diamond-investing-scam-targets-nova-scotia/#comments Wed, 03 Nov 2010 16:50:01 +0000 Natalie MacLellan https://beforeyouinvest.ca/?p=1044 Nova Scotians are being targeted with an investing scheme offering diamonds as an alternative to stock market investing.

While we don’t know of anyone who has invested, the Nova Scotia Securities Commission has been contacted by individuals who were pitched the scheme, and thought it sounded fishy enough to report. A similar scam has been reported in various other Canadian provinces.

While details are still sketchy, the scam works something like this:

  1. 1. You are approached with a great investing solution, much safer than the stock market. Investing in diamonds is positioned as a great alternative, as diamonds are “always” valuable.
  2. 2. You are shown an appraisal for a diamond, and are sold the diamond at a discounted rate to the appraisal value. The appraisal is a certificate with a picture of the diamond and the appraised value.
  3. 3. The company supplies both the appraisals and diamonds, and gives you a certificate from an appraiser.  You do not take possession of the diamond.
  4. 4. You are told that you can sell the diamond back to the company later on.

Even if this is a legitimate offer, this is not the way we would suggest anyone buy a diamond (or any other commodity). You ought to be able to see the diamond for yourself, and have an independent appraiser look at it. Also, if the gem is not in your possession, you are unable to shop it around at a later date, to ensure you are getting the best price if and when you decide to sell.

Because this diamond is sold as an investment contract, it is a security. A seller would have to be registered with the Nova Scotia Securities Commission, or qualify for an exemption under the Nova Scotia Securities Act. If you have been approached with this or a similar investment scheme, contact the Nova Scotia Securities Commission at 424-7768 or by email.

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All that glitters… Beware of gold investing scams https://beforeyouinvest.ca/2010/10/all-that-glitters-beware-of-gold-investing-scams/ https://beforeyouinvest.ca/2010/10/all-that-glitters-beware-of-gold-investing-scams/#comments Tue, 26 Oct 2010 13:20:31 +0000 Natalie MacLellan https://beforeyouinvest.ca/?p=1022 The soaring price of gold has sparked a modern-day gold rush among investors eager to recover stock market losses. But it’s still a Wild West out there, and dangers abound for prospective gold investors.

The idea of gold as a “safe investment” is a myth. An investment in gold is not foolproof. Know your investment objectives and your risk tolerance, and don’t be swayed by trends. Gold may not provide long-term investment returns. Gold is a commodity, and, like other commodities, its price can fluctuate dramatically.

Historically speaking, the value of gold-related investments fluctuates even more than the stock market. Gold often moves in reverse of stocks and bonds, so when stocks are down, gold may seem like a very tempting investment.

Beware of gold investment scams. Where there is an investing trend, there is a con artist trying to take advantage of it. For example, in one typical scheme, a seller offers to sell actual gold bullion and then retain the investor’s gold in a “secure” vault with a promise to sell the gold for the investor as it gains in value. In many instances, the gold does not exist. In another typical scenario, a company encourages investors to cash out of their poor-performing investments to purchase gold, which may be nothing more than “fool’s gold.”

Remember, if you are advised to cash out investments and roll funds into a different type of investment, make sure the person advising this is a registered investment adviser.

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The 3 Rs of investing https://beforeyouinvest.ca/2010/10/the-3-rs-of-investing/ https://beforeyouinvest.ca/2010/10/the-3-rs-of-investing/#comments Mon, 18 Oct 2010 13:59:56 +0000 Natalie MacLellan https://beforeyouinvest.ca/?p=998 October 17 – 23 is Waste Reduction Week in Canada*. It’s a week when consumers are challenged thorough a series of events to consider the environmental and social ramifications of wasteful practices. Waste reduction can be acheived by following the now famous 3-Rs: reduce, reuse and recycle.

Seeing as how Waste Reduction Week falls in the middle of Investor Education Month, I did some brainstorming and came up with my 3-Rs of safe investing: research, and registration and re-evaluation. Follow these 3-Rs to help ensure your hard earned money doesn’t go to waste!

Research – Always, before you invest, do your research. What do we mean by this? Basically, you should never invest in anything you don’t understand. We don’t expect you all to be financial experts, but when it comes to your own portfolio, you should know (and be comfortable with) what is going on. Find out more about the companies you invest in. Your adviser can supply you with some information, but you can also check with the Better Business Bureau, in the news or online.

Be sure to understand the type of fees and commissions you are paying. Are there rules or restrictions involved in the kind of investment you are buying, or the account you are opening? Be sure you know how (or if!) you can access your money if you need it. Read the fine print, and ask your financial adviser, lawyer, accountant or other trusted adviser for clarification. Read How to do a background check to get yourself started. Still have questions? That’s why we’re here. Ask us!

Registration – Always, always check the registration of your financial adviser. You can find this information using the Canadian Securities Administrators’ National Registration Search, and searching for a company or individual by name to find current and historical registration information.

Nova Scotia laws require investment advisers to be registered with the securities commission (with certain specific exceptions). The company an adviser works for must also be registered in Nova Scotia. This regulatory system helps to make sure that all registered dealers and advisers meet certain minimum standards. If your adviser is not registered, contact us to find out if they qualify for an exemption.

Re-evaluate – What may have been a good investment decision two, five or ten years ago might no longer be suitable. Think of how much your life can change in just a few years. Maybe you have young children to consider. You’ve been married, or your marriage has ended. Perhaps you are getting ready to retire. Whatever the changes in your life, they will change your financial needs. It is a good idea to sit down once a year with your financial adviser and review your financial plan and your portfolio.

*While Waste Reduction Week has been celebrated officially in Canada since 2001, one of the first Waste Reduction Week events was held here in Nova Scotia fifteen years ago. You can find out more about reducing waste from Clean Nova Scotia.
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