Some people who use paid advertisements to promote their investment opportunities may not be properly registered to trade in securities. As well, certain ads may provide misleading information to the public regarding potential investments. These ads can appear in newspapers, magazines, television, radio, newsletters, online or on billboards.
In many cases, investments described in the advertisements may look or sound legitimate, but unless investors verify this first with an objective source such as their provincial or territorial securities regulator, they could risk committing their money to a misleading or illegitimate opportunity. In this situation, once money changes hands, it’s often difficult or impossible for investors to get their money back.
Regardless of the source, investors should protect themselves by researching any and all investment opportunities before investing. While no investment is without risk, investors can research opportunities to lessen the risk of falling victim to a scam. Investors shouldn’t assume an opportunity is legitimate based on where it appears or how it is presented.
Make sure you are familiar with the red flags of investing. Use our scam sensor to help you decide if your investment opportunity is right for you and see if the company has had any disciplinary action.