Learn the Warning Signs of Investment Fraud: If You Get A Hot Tip to Make Quick Money
It’s easy to spot Investment fraud when you know what it looks like. You could be approached through text, email, phone calls, or in groups or financial courses. There are clear warning signs. Protect yourself by knowing them. Ensure anyone offering financial advice or investment products is properly qualified.
‘Hot tips’ or ‘insider information’ are always showing up on social media. It is usually very old news. An unscrupulous advisor wants you to think that you’re getting privileged information with an urgent opportunity. They benefit by making you believe this, then they’ll take your money without any possible hope of a return.
Very experienced investors can spot trends and develop a careful strategy to act on them. However, insider information about a public company is not actionable; to do this would violate insider trading laws.
Don’t fall for tax avoidance schemes such as offshore investing and special RRSP loans, pyramid schemes, and anything offering guaranteed rates of return. If in doubt, use the Ontario Securities Commission’s Scam Spotter Tool to clarify your thinking.
Or ask your FORTAX Financial Advisor about it. Your advisor has the training to spot emerging trends – as well as the scams.
Protect yourself and your hard-earned money by becoming a smart financial and investment consumer. Your FORTAX Financial Advisor can help you verify the legitimacy of any opportunity you are considering.