Investing 101 – Part 3 Spotting Frauds and Scams

Agenda Introductions Avoiding frauds and scams –Red Flags –Protect Yourself –Where does investment fraud show up online? –Protecting yourself online –What to do if you’re concerned

Who is the NBSC? NBSC –Crown corporation –Protect investors and foster capital markets –We also offer unbiased education information on about informed investing

Who is at risk? There is no “typical victim ” of investment fraud.

The Red Flags Guaranteed high returns / no risk High pressure sales tactics – “Act now!” Offshore or tax free Profit like the experts Your friends can’t be wrong Secrecy Overly consistent returns Unregistered activity

Red Flags in action: Why a Ponzi fails

Red Flags in Action Profit like the experts – the exclusivity of the investment appealed to investors Overly consistent returns – Madoff reported losses in only 7 months over a 14 year period Secrecy – He refused to provide disclosure documents to investors who wanted to do their due diligence.

How do I protect myself? Avoid potential problems Check before you invest –Registration –Disciplinary history –Company history –News

How do I protect myself? Ask yourself: –Is the firm and individual registered? –Can I verify this investment with a credible source? –Is the risk I’m taking reasonable? –Is the opportunity based on facts? –Do I understand how the investment works? –Have I had time to make an informed decision?

Investing Online - Where can fraud show up? Online bulletin boards Social media profiles Social network messages/chat rooms/discussion boards spam

Online safety – Social Networks Profiles –Social networks make victim profiling easier for scam artists –Advertising on social networks can be targeted to a very specific group –We connect with strangers and give them access to our personal information in a way we never would offline

Online safety – s s –Spelling errors and poor grammar –Redirect or fake links (hover over to check) Take a moment to think about the message: –Do you even have an account at that bank? –Would your credit card company really you about something as important as account access? –The CRA has never asked for your address. –Would someone REALLY send millions of dollars to a stranger? –Is the message sent to just you or multiple people?

How do I protect myself online? Don’t share personal details Type your bank or social network’s website URL instead of clicking links Do the same homework online as you would offline

What to do if you’re concerned Report any suspicions or concerns you have. Check with us if you’re unsure – we’re here to help.

Learn more! Facebook.com/4NBInvestors Toll free: