Skip to content

How to Protect Your Investments

The best way to protect your investments is to avoid fraudulent ones from the outset, but how can you tell which are real and which are fake?
4-4 Protect from Scams
Photo by Bermix Studio on Unsplash

There are a few things you can do, starting with these three simple tips.

Start at the Alberta Securities Commission’s CheckF1rst Site

For Albertans, the first stop for checking on the validity of any investment should be checkfirst.ca. This website is managed and designed by the Alberta Securities Commission (ASC), a provincial regulatory body dedicated to protecting investors from fraudulent investments and practices.

The ASC recommends your first step should be to search the business you may be investing in on the Canadian Securities Administrators National Registration Search. If it’s there, you can see details and important info that can guide your decision. If it isn’t there, then extreme caution is highly recommended.

Know the First Signs of a Scam

If you’ve checked the business on the National Registration Search, then you still need to be vigilant. Be aware of the big signs that something might be too good to be true. These include (but are not limited to):

 

  • Unsolicited contact: Great investment opportunities take time and research. They rarely randomly end up calling. If you get a call for a rare investment opportunity, it’s likely not real.

 

  • No way to call back: Legitimate investment opportunities are run by people trying to launch a great idea. They have a way to contact them. Fake investments often don’t have contact info to stay anonymous and out of trouble, making them impossible to call back.

 

  • High pressure to invest now: There’s nothing wrong with taking your time to research. If you come across an investment that’s putting a lot of pressure in to act quickly, you may be better off waiting for a different opportunity.

 

  • Promises of high reward and low risk: Some things are too good to be true. High reward and low risk is one of them. Proceed with caution when approached with these types of promises.

Talk to the Professionals

One of the great leaps in modern finance is the ability to manage much of our wealth on our own. That said, the professional opinion of finance experts has only gotten more valuable in a world of cryptocurrencies, NFTs and digital trading. Never hesitate to contact a local finance and investment professional. These certified and regulated experts can help you figure out an investment plan that meets your goals and avoids unnecessary risks.

Investments are never without risks. That said, you can always mitigate some of the risk by being smart in where you put your money. Be sure to check any opportunities with the CheckF1rst search function and be aware of the classic signs of a fraudulent investment. That way, you can move forward with investments that may be risky, but at least they’re real.

CPC-logoThis story was made possible by our Community Partners Program. The editorial content and views expressed in the articles are not those of CheckFirst.ca and the Alberta Securities Commission. Learn more.