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March is Fraud Prevention Month: Investment Fraud Prevention Tips from the ASC

In recognition of Fraud Prevention Month, the Alberta Securities Commission (ASC) is raising awareness of the red flags of investment fraud.

In a recent study conducted by the ASC, 54% of Albertans aged 45-64 believed they had been approached with a potentially fraudulent investment opportunity. By understanding the tell-tale signs of fraud and remembering the fundamental principles to making wise financial decisions, Albertans can learn to recognize, avoid and report investment fraud and financial abuse. Remember the following tips to safeguard your savings or those of someone you care about.

Leveraging fears or anxieties: A go-to tactic of every scam artist is tapping into the financial stressors you (their target) may have. This could include having enough for retirement, leaving a legacy for loved ones or the fear of missing out on great investments. Regardless, keep an eye out for anyone trying to tap into your fears or anxieties when offering an investment. It is important to pause and do your research before making any investment decisions. Do an online search to see if there are any news articles, social media posts or disciplinary actions taken against the individual or company. Even if the offer isn’t fraudulent, it may not be right for you so it’s important to understand it and its risks.


New friends taking an interest in your financial wellbeing: As we connect with friends and family and make new friendships, be wary of any new person in your life who takes an interest in your finances. Fraudsters often work hard to establish trust, learn the fears or anxieties you may have, understand how much they can steal and how to manipulate you. Be sure to create boundaries and do not share your personal financial information or anything about your private matters. Also, be mindful of the personal information you share about yourself online – adjust your Facebook, or other social media account settings to “private”, and carefully consider any friend requests.  Don’t share personal or financial information with anyone you’ve just met online or in-person unless you can verify their identity and have thoroughly researched any financial offers they’ve made.

Investment offers from unregistered individuals: By law, anyone selling investments in Alberta should generally be registered with the ASC. Check to see if the firm or individual pitching the investment opportunity is registered by checking the Canadian Securities Administrators’ (CSA) National Registration Search. If the investment offer comes to you from a friend, ask where it originated from and ensure the individual or firm that offered it to your friend is registered. Contact the ASC if you suspect it may be a fraudulent investment or need assistance in confirming registration.


Exclusive offers: Investments promoted as exclusive offers just to you is a clear red flag of fraud. Fraudsters often try to take advantage of those interested in investing by promoting opportunities to “get in early,” or claiming that unless you move fast, you are going to miss out on the latest trend or great “opportunity” to make money. Fraudsters use exclusivity to drive false urgency and prevent you from researching and talking to others about the investment. Investments will always be available, and no credible financial advisor should ever rush you into a decision.

Growing your investor knowledge can help you recognize, avoid and report investment fraud. If you are interested in learning more about how to stay safe and protect yourself from fraud, consider attending a virtual or in-person Fraud Prevention Month event. You can find the ASC presenting at the Association of Certified Fraud Examiners’ 2023 Edmonton Virtual Fraud Conference and at various Alberta Community Crime Prevention events across the province. If you are interested in attending an event this month, please visit CheckFirst to register.

If you feel you or someone you care for may be involved in an investment scam, do not let the embarrassment or fear keep you from speaking up. You can contact or file a complaint with the ASC at or call us toll-free at 1-877-355-4488.

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