Question 3:
What is a common red flag that an investment may be a fraud?
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CORRECT!
All of these answers are red flags. Investment advisors typically do not make unsolicited phone calls and offer to sell you products over the phone for which you can pay with your credit card. In addition, terms like "special opportunity" are often employed by fraudsters to make people feel they are being offered something they should not turn down.
Another tactic of fraudsters is to put pressure on people to send money to them by telling their victims that the opportunity is time limited, and if they wait to think it over they will miss out on the opportunity. In reality, it would be highly unusual for any investment opportunity to be so time limited that an investor would not have a reasonable amount of time to think things over. All individuals who offer mutual funds must be registered with the Provincial or Territorial securities authority. You can check whether an individual is registered at www.aretheyregistered.ca.
