Did you know that results from a study conducted by the Alberta Securities Commision in 2020 found that ⅓ of individuals aged 55+ believe they have encountered an investment fraud?
Increased isolation caused by the COVID-19 pandemic has created a prime opportunity for fraudsters to attempt to become a “trusted” friend of an older adult. Unfortunately, this “trusted” friend may appear nice at first to someone who is looking for companionship, however the intentions of the fraudster are to scam the individual. Some of the tactics used by fraudsters in an investment scam include: appearing trustworthy and polite to quickly create a relationship with the older adult, creating fear that the older adult will run out of money, suggesting that new technologies are a great investment opportunity, using sales tactics that pressure the older adult, promising low risk, high return investment opportunities, sending the older adult friend requests through social media.
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This article was originally published on the Alberta Securities Commission’s (ASC) investor education website CheckFirst.ca. The ASC is the regulatory agency responsible for administering the province’s securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada’s capital markets.