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Fraud Prevention

Scam artists are clever. Take some time to learn about the common scams that circulate in the financial services sector. Know the ways scam artists will try to take your money. You may be surprised to find out how easy it is.

Red Flags of Fraud

Investment fraud is a serious crime that can cause significant financial losses for individuals and organizations. Unfortunately, fraudsters are becoming increasingly sophisticated in their tactics, making it challenging to identify fraudulent investments. However, there are some red flags that can help individuals recognize and avoid investment fraud. These red flags can include:

  • Low risk high returns. If it looks too good to be true it probably is.
  • Pressure to make a quick decision.
  • “Insider” information. If an individual is giving out “confidential” advice, they may actually be deceiving you or their employer. Both put you at risk.
  • Offers from complete strangers.
  • Unregistered individuals. If the person is not registered to do business in Manitoba, they may not be in a position to be dealing with you.
  • Anti-establishment. Any individual who encourages you to subvert the government or avoid financial institutions is most likely trying to keep their illegal activities from being tracked.
  • Exclusive offers for wealthy people. Be wary of offers that are allegedly intended for the super rich but are being offered to the average person.
  • Cutting out the paper trail. Without receipts for statements or forms, a scam artist can easily take your money without being detected.
  • Overly complicated offer.  You should always understand where your money is going.
  • Avoiding the question. If the person making the offer doesn’t answer your direct questions, they’re probably trying to keep you from seeing the truth. Legitimate business people have nothing to hide.

By being aware of these red flags, you can take steps to protect yourself, your loved ones and your investments.

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