Hot cakes and hot tips – how you can avoid the burn of investment fraud
Imagine this: you’re in line for one of the season’s famous breakfasts or BBQ buffets. You’re enjoying good food and times with friends and family when the conversation turns to investing.
“It’s been great,” says someone from your group. “In less than three months, I’ve received double what I put in. They’re looking for more investors too…you should think about it.”
Does this sound familiar? Chances are you or others involved in the conversation may be tempted to invest in the same opportunity.
Before you do, be sure to do some research. The Alberta Securities Commission (ASC) has a few tips to get you started:
- Check registration – is the company or individual offering you the investment registered with the ASC? A person or company must be registered to advise in and trade securities.*
- Check enforcement history – look through the ASC’s listings of hearings, decisions and orders to see if there is any enforcement action against the company or individual.
- Do a general internet search - see if there is any additional information on the web about the opportunity, or the company or individual.
So before you jump on a hot tip, ask questions about the investment and get your information in writing. Consult with someone with business knowledge that is not involved in the deal so you can get a second opinion. If the opportunity sounds suspicious, take time to think more about it.
If you or someone you know has been approached with an investment offer that sounds like it may be an investment fraud, please contact ASC Public Inquiries at 1-877-355-4488.
*Unless there is an available exemption. To find out more, contact the ASC.