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Lorena Smalley

NATIONAL SENIORS SAFETY WEEK – RESOURCES FROM THE ALBERTA SECURITIES COMMISSION

On Thursday, November 8th we hosted our 2nd annual National Seniors Safety Week event.  Our friends at the Alberta Securities Commission have provided us with a summary of their presentation.  Make sure to check the LATEST NEWS on our SENIOR FRAUD ALERT website for their monthly article!

ALBERTA SECURITIES COMMISSION

  • Industry-funded agency responsible for administering the province’s investment laws.
  • Entrusted with fostering a fair and efficient capital market in Alberta and protecting investors.
  • Provide independent, unbiased resources to Albertans.

Investment scams continue to be the leading type of fraud in Canada

Common ways of being approached

Social interactions

  • Friends
  • Family
  • Social media/dating apps
  • Associations
  • Chat rooms

Cold calls/emails

  • Email
  • Phone
  • Boiler rooms

Advertisements

  • Newspaper
  • Internet
  • Radio
  • Seminars

Common types of fraud impacting older Albertans

Affinity fraud 

Scam artists take advantage of the trust and friendships that exists within groups of people with something in common:

  • Religious organizations
  • Ethnic communities
  • Social clubs
  • Professional associations

The scam artist is part of, or pretends to be part of, the group and enlists unsuspecting leaders of the group to spread the word about the scheme to make it seem credible.

Romance/friend scams

Fraudsters create fake personas and pretend to have a romantic interest or desire for friendship to request money for financial help or to invest for you. 

  • Starts online
  • Can include offers to invest in crypto
  • Fraudsters will use the words love very quickly
  • Fraudsters will commonly refuse to do video calls
    and only send pictures

Romance scams are growing at an alarming rate. Never share personal or financial details with new friends or love interests and do your research before sending money or investing with them. 

Do your homework

  • When considering an investment, research:
    • Is it legitimate?
    • Is the risk/return profile right for me?
    • Do I understand the industry/company/investment?
    • Does it fit with my investment goals?
    • Are there any hidden costs?
    • Does it sound “too good to be true”?
  • No research, no financial plan = easy target for fraud

Complaints for other organizations

  • CRA Scams – REPORT TO – CRA, Canadian Anti Fraud Centre or RCMP
  • Insurance products – REPORT TO – Alberta Insurance Council
  • Consumer fraud (e.g. buying fake brands, products on Kijiji, etc.) – REPORT TO – Service Alberta or the Competition Bureau of Canada
  • Trading issues, most investment/financial advisors (registered representatives, dealing representatives) – REPORT TO – CIRO
  • Lottery issues – REPORT TO – AGLC

Suitable complaints

  • Securities fraud
  • Investment fraud
  • Insider trading
  • Stock promotion
  • Selective disclosure
  • Unregistered individuals
  • Ponzi Schemes

Free and unbiased resources.  What can you report to us?

  • Suspicious investments:
    • Uncomfortable about an investment opportunity you’ve been considering?
    • Not sure if you should believe a friend who says an opportunity is too good to be missed?
  • File an investor complaint:
    • Do you have serious concerns about a company you have invested in?
    • Do you believe that a company or individual has breached securities law?

Strengthen your investor knowledge  

Subscribe to new investor information and articles:

Contact us

  • 1-877-355-4488 (toll free) 
  • in*******@as*.ca
  • It may be difficult to come forward, but information you provide could help others from becoming victims.