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4 signs of investment fraud

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Look out for these signs, research any potential investment that you’re offered and check registration status before you invest.

4 signs of investment fraud

#1: You can make a lot of money with little or no risk

In general, higher-risk investments offer higher potential returns and lower-risk investments offer lower returns. This is known as the risk return relationship.

4 signs of investment fraud

#2: You get a hot tip or insider information

The sources of "hot tips" or "insider information" don’t have your best interests in mind. Think about why they’re offering you tips and how they benefit by telling you about them. Keep in mind acting on insider information about a public company is illegal.

4 signs of investment fraud

#3: You feel pressured to buy

Scammers frequently use high-pressure sales tactics – to get your money and then move on to other victims. If you’re asked to make a decision right away, it’s likely not in your best interest.

4 signs of investment fraud

#4: They’re not registered to sell investments

Before you invest, check the registration and background of the person offering you the investment. In general, anyone selling securities or offering investment advice must be registered with the securities regulator in your province or territory.

4 signs of investment fraud

Learn how to protect yourself

Learn how scammers might approach you and some ways to avoid investment scams.

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