In 2019, there were over 19,000 recorded victims of fraud in Canada, with $98 million lost due to fraud, not including unreported cases. Individual scams come in so many varieties that the Canada Anti-Fraud Centre has even compiled an alphabetical list.
One of the difficulties however, is that those who commit fraud are constantly trying out new strategies that are not yet on a list.
As COVID-19 spread around the world, for example, private companies began offering “faster” tests, people appeared on doorsteps offering “decontamination” services, and fraudsters posing as employees of charitable organisations offered free medical products (such as masks) in exchange for a donation.
That is why it is critical to be on the lookout for red flags and signs that a loved one may be a victim of fraud.
That is another reason we took a look at the “Trusted Contact Person” in an article just about a year ago now. If you think it might be a scam, it is a good idea to reach out to your trusted contact person. If you don’t have a trusted contact person, you should seriously consider it.
Protect Your Investments
Don’t skip steps even if you hear about an opportunity from a reliable source, such as a friend or family member. Investigate the company to see if the securities regulator has taken any action against it. Discuss it with your advisor as well; they may be able to assist you in avoiding fraud.
In general, fraudsters prey on fear and greed, so be wary if someone’s tone is threatening or an offer appears to be too good to be true.
Request documentation for any investment you’re thinking about making, and never sign a blank form or one you don’t completely understand. Remember that reputable advisors will gladly spend the time explaining products and answering all of your questions.
Greater awareness may be the most effective defence. Learning about fraud, educating your friends and family, and discussing it with your advisor can all help you protect your assets from its financial and emotional consequences.
THIS ARTICLE IS PROVIDED AS A GENERAL SOURCE OF INFORMATION ONLY AND SHOULD NOT BE CONSIDERED TO BE PERSONAL INVESTMENT OR LEGAL ADVICE. READERS SHOULD CONSULT WITH THEIR FINANCIAL OR LEGAL ADVISOR TO ENSURE IT IS SUITABLE FOR THEIR CIRCUMSTANCES.