Finance by James Dolan OK, everyone: it’s time that we talked about something that nobody wants to talk about: fraud. Yup, it’s a scary topic. Nobody likes to imagine their retirement nest egg wiped out because of a “can’t miss” opportunity that turned out to be a scam. But it happens. Nobody wants to hear that their inheritance has been stolen by a crook who pulled the wool over a parent’s eyes. But it happens. Nobody wants to hear that cases of investment fraud are on the rise. But it’s happening. If you’ve been around for a few years (as most snowbirds have been!), chances are that you’ve already encountered some kind of attempted investment fraud: maybe e-mails from that Nigerian prince who keeps telling you about a hidden fortune which he needs help unlocking. Or phone calls from a salesperson telling you about an exciting “hot tip.” Or maybe you’ve been forced to sit through a high-pressure sales meeting for a “can’t miss” overseas condo investment. How often do people fall for such frauds, scams and ripoffs? Nobody knows for sure − the lack of public information about fraud makes it impossible to get an accurate measure on either its prevalence or its impact. In fact, the RCMP suggests that, at most, only 5% of the $3 billion or so in investment fraud that happens in Canada each year is ever reported. But here’s the good news: you can prevent fraud fromhappening to you. By learning the simple warning signs of fraud and taking tangible steps to effectively protect your portfolio − steps that are actually more common sense than anything else − you can largely inoculate yourself against shady deals, questionable investment “opportunities” and out-and-out cons, no matter what form they take. With that in mind, here’s some information about investment fraud − common misconceptions, easy warning signs and effective strategies regarding how you can protect yourself. While this knowledge won’t eliminate the fraud risk altogether, it will help ensure that you don’t become an easy mark for fraudsters. What you absolutely, positively, categorically must know about investment fraud Myths, warning signs and strategies to protect yourself from fraud, cons and scams 28 | www.snowbirds.org
RkJQdWJsaXNoZXIy MzMzNzMx