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Protecting Your Retirement
Recognizing, avoiding and reporting fraud and financial
abuse
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We’re the New Brunswick Securities CommissionWe’re here for you!
• Work to protect investors• Develop and enforce securities
regulation• Act on your complaints• Provide free educational information,
resource, tools and presentations
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Stop Financial Abuse
• How you might be approached
• Common Scams
• Spot a Scam and a Scam Artist
• Recognize the warning signs of financial abuse or exploitation
www.investinknowingmore.ca
What is investment fraud?• Deception
• Expectation of potential for high returns
• A real a serious concern in NB
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How you might be approached:• Investment Seminars – “Free lunch”– Sales pitches / High Pressure– Inappropriate investments
• Fraud Among Friends– Affinity fraud– Trust– Promoters (victims) may not even know
it’s a scam!
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Common Scams
• Not being registered with us
• “Private” or “Special Deals”
• Hot news items or products
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Spot a Scam
• Unrealistic Returns / no risk• Tax-Free / Off shore• Insider information
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Spot a Scam Artist
• Pushing complicated or unknown products
• Focus on the silver lining or avoid answering questions
• Pressure you to act fast• Play on your emotions• Try to become fast friends
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Common lines used
• “Act now before this offer expires.”• “You’ve won a prize—you just have to
pay the taxes/ fees.”• “Keep this information to yourself – we
don’t want everyone getting in on it.”• “Your friends and family are already
invested and making money.”• “Other people in your community are
already turning a profit.”
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Stop Financial Abuse
How can I recognize financial abuse?• Warning signs or red flags of financial
abuse can show up in a person’s history or in their current behaviour.
• Some of these red flags may make a person more vulnerable to financial abuse
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Red Flags in History• Social Isolation
• Bereavement
• Dependence on another for care
• Alcohol or drug abuse
• Financially responsible for adult child or spouse
• Depression or mental illness
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Red Flags in Behaviour• Unusual fear or sudden change in feelings
about a particular person or people
• Change in appearance / poor hygiene
• Accompanied by an overly protective or dominating caregiver
• Change in ability to perform daily living activities
• Discrepancy between standard of living and financial situation
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What happens next?
• If any of these red flags raises suspicions, use the “Financial Concerns Checklist” to have a conversation.
• Make it safe and non-threatening.
• Report suspected financial abuse to the police, or investment concerns to the New Brunswick Securities Commission.
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Let’s stay in touch!
Facebook:www.facebook.com/4NBInvestors
Website: www.investinknowingmore.ca
Phone (Toll Free in NB): 1 (866) 933-2222
Email: [email protected]
Twitter: www.twitter.com/4NBInvestors