March is Fraud Prevention Month

NOTE: The following is a feature story about investment fraud.

Just a few minutes can help Nova Scotians learn how to protect themselves from investment fraud.

If you use the Internet, chances are you've seen ad headlines saying Make Money Quick, Double Your Money in Days, or Earn Thousands in the Comfort of Your Own Home. Investment scams are virtually everywhere on the World Wide Web.

While most people are savvy enough to ignore pleas for financial help from Nigerian royalty, there are smarter scams out there targeting inexperienced investors. And when you hand over the money, chances of getting it back are slim.

The quickest, best way to avoid such difficult lessons is for people to educate themselves about investing and do some research. Investors need to ask themselves should you really hand over your money to someone you don't know, someone who doesn't know your financial needs?

As part of national Fraud Prevention Month, the Nova Scotia Securities Commission is encouraging people to learn the basics of investing by following them on Twitter at B4UInvest or visiting their blog at www.beforeyouinvest.ca . There are daily trivia questions about fraud-related topics, with an opportunity to win weekly cash management software prizes or the grand prize of a Nintendo Wii console.

"Its important that investors not only know what steps to take, but they need to act on them to protect themselves and their financial future," says Natalie MacLellan, investor education officer with the Nova Scotia Securities Commission.

According to research by the Canadian Securities Administrators, more than a million Canadians have lost money in an investment fraud. It suggests most people are not doing all they can to make informed investment decisions.

Nova Scotians are urged to work with an advisor to review risk tolerance, learn to identify red flags of investment fraud, and report suspicious activity. A recent survey showed that 41 per cent of Nova Scotians believe they have been approached with some form of investment fraud, but less that a third of them reported the attempt.

MacLellan says, "We want people to take stock of their financial education and arm themselves with the knowledge to avoid potential investment fraud."

Month-long activities are planned around the province, including Fraud Off at the Nova Scotia Community College Waterfront, Scam Jam at Mic Mac Mall and fraud prevention booth displays. Fraud Off is designed for students to take part in an inter-active game show on fraud related questions, along with presentations from various organizations. Scam Jam is a public anti-fraud event organized by the Better Business Bureau.

"The commission urges people to take the next step and report investment fraud to the proper authorities" says MacLellan. "Remember, we must work together to recognize, report and stop fraud."

To report a complaint to the securities commission, go to www.gov.ns.ca/nssc/compliancenforce/complaint.htm or phone 902-424-4558.