Securities regulator warning comes amid rising online risk
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Around a quarter of investors in BC are vulnerable to investment fraud according to a new survey from the province’s securities regulator.
The British Columbia Securities Commission surveyed 500 people in BC last month and asked for their reaction to an investment offer that “guaranteed” returns of 14-25% with “no risk.”
There were several warning signs in the ‘opportunity’ offered, but 26% said they would look into it while 20% said they would do so because they need the money.
"Investors should always be skeptical of anyone offering a risk free investment with an unusually high return, because there's no such thing," said Pamela McDonald, Director, Communications and Education, BCSC. "We encourage investors to look carefully at every investment they make, but also to listen to your gut. If something doesn't make sense, or doesn't feel right, we encourage you to contact the BCSC."
Younger British Columbians aged 18-34, especially women (47% vs. 35% of men), were most at risk of falling for an investment fraud, the survey reveals.
Only 13% of over 55s were deemed vulnerable to the offer.
More than three quarters said they had been targeted by fraudsters by phone, text, email or ‘skimming’ of cards; 56% said this happened more than once a month.
"Awareness is the first step to fraud prevention," says Norah McCarthy, Senior Vice President, Retail Transaction Fraud and Client Account Management, CIBC. "Our poll results show that constant vigilance is the best way to protect yourself. Fraud comes in many forms and can have serious consequences if you don't take steps to protect yourself. Protecting yourself begins with recognizing and reporting fraud when you see it."
