1. Get a second opinion
Be skeptical of unsolicited investment opportunities – over the phone, online or from acquaintances. Before you invest, get a second opinion from a registered, qualified advisor, a lawyer or an accountant.
2. Check registration
Generally, anyone selling securities or offering investment advice must be registered with their provincial securities regulator. Check registration through the Ontario Securities Commission or Canadian Securities Administrators.
3. Take the time you need
Be suspicious of time-limited offers and high-pressure salespeople. If the investment is legitimate, you should not have to invest on the spot. Take the time you need to make an informed decision.
4. Research the investment
Before you make any investment, understand how it works, the risks and any fees. Make sure it fits with your financial goals and your other investments.
Choose your investments – don’t let them choose you
If you have a financial plan, you can evaluate any new opportunities in relation to your plan. You’ll be more likely to choose appropriate investments if you consider how they fit with your goals and risk tolerance.
Take action
Read the Little Black Book of Scams from the Competition Bureau to help protect yourself against fraud.
Key points
To avoid investment scams:
- Get a second opinion
- Check registration
- Take your time
- Research the investment
