A surprising number of older British Columbians are vulnerable to scam artists, in large part due to financial insecurity and lack of investment knowledge, according to a new survey from the B.C. Securities Commission.
The survey found two in five residents over the age of 50 are afraid of running out of money during retirement, and only 44 per cent have reasonable expectations when it comes to annual returns on investments.
"What we found astounding was that people actually believed that an outrageous investment offer, for example 25 per cent monthly returns with no risk, that was a real offer. It doesn't exist," said Brenda Leong, B.C. Securities Commission CEO.
One in eight British Columbians thought a huge return like that was reasonable. But a more likely return is five or six percent.
The Securities Commission has embarked on a creative educational campaign to combat fraud. It recently set up an interactive billboard, starring the fictional fraudster David, in a Vancouver shopping mall, and as hidden cameras rolled, he tried to talk consumers into a fraudulent investment scheme. Some shoppers fell for it.
The Securities Commission says the best way to protect yourself is to watch out for any investment offer that's offshore, tax free or promises a guaranteed return, and always use a registered investment advisor.
For more information visit the Fraudster Fighter Tool Kit.
