How to Protect Yourself from Fraud
Here are some ways you can protect yourself from frauds and scams
- Never give your money to strangers who contact you out of the blue online or by phone.
- Avoid binary options at all costs. These are not legitimate investment opportunities anywhere in Canada. Selling unregistered binary options to New Brunswickers is illegal. You will lose your money. Many of the “trading platforms” operate from servers overseas which means the money goes outside of Canada. This makes it virtually impossible to get your money back.
- If you get a call from a stranger or a company who offers to help you with your online investment trading, do not install any screen sharing software on your computer.
- Never invest, sign a contract, or buy a product that you don't understand.
- Recognize an unrealistic promise. The markets are constantly moving and it can be hard to know what rate of return is reasonable to expect. To know if you are being offered a reasonable rate of return for the risk involved, compare it to the bank rate being offered on low risk investments such as GICs, or seek the advice of a registered financial professional.
- Monitor your investments and financial statements. If something doesn’t look right or you don’t understand the information, ask questions.
- Keep your emotions in check. If you’re having a strong emotional reaction (like getting upset, worried or very excited), take a moment to calm down and think clearly. Scam artists play on your worries about outliving your savings, being a financial burden on your family, and your concerns for the safety and wellbeing of those you care about. Don’t let fear cloud your good judgment.
- Don’t rush a decision. Many people are looking for a way to increase their savings, but making a rushed financial decision could lead to losing more money than you gain. Get the facts and take the time to evaluate and think it through before you make any decision.
- Finally don't let embarrassment or fear keep you from reporting financial fraud or abuse. Scam artists prey on your fears and count on that to prevent you from notifying authorities of a scam. Every day that you delay reporting fraud is one more day that the fraudster is free to spend your money and target your friends and family as their new victims.