If all those stories about innocent people falling victim to merciless scammers keeps you awake at night, then a new guide might make for some appropriate bedtime reading.
The Alberta Securities Commission (ASC) has just released a comprehensive yet concise guide on how citizens can protect their hard-earned money and stay safe from fraudsters. It’s designed to put you at ease, though it’s cleverly written from the point of view of the fraudsters themselves.
Its title is Don’t be Fooled by Fraud (but they colloquially call it The Fraudster’s Playbook). It’s as fun as it is informative and accessible to peruse. It does a remarkable job of offering the reader special insight into what might make them vulnerable and what steps in turn could be taken to protect themselves in the strange, wild world today that has only been made even more fertile for fraud due to the pandemic. As people’s emotions run high, so do the engines of scammers.
“Typically, our studies show that one in four Albertans believe they may have been approached with a possible fraudulent investment,” explained Hilary McMeekin, director of communications and investor education.
“This is of great concern. The amount of money you can lose to fraud can be everything you have ... and more, if you borrow money from the bank or against your home to make that investment. Additionally, scam artists prey on those that are vulnerable, which is particularly true when we are going through an economic downturn or pandemic. Albertans need to be extra vigilant at times like these.”
The ASC is responsible for securities regulation in Alberta, and with that it serves to protect Albertan investors by providing educational resources to help them build up their financial knowledge around investing and offering tools to empower them to make safe and smart decisions on their own.
Its research demonstrates how many people feel ill-prepared and lack confidence regarding their own finances and protecting themselves from fraud. Their investigators often hear victims say, "I never thought it could happen to me.” Reading the playbook could have helped them prevent it from happening in the first place. "To stop it, you need to understand it," the book states. That's why it's written from the other side.
It gives you seven steps that take you inside the mind of a scammer and their schemes, while providing key actions that readers can take at any stage to protect themselves:
1. Identify potential victim(s) for the scam
2. Befriend and earn trust
3. Drop hints or showcase the benefit of an “investment” opportunity
4. Offer the investment opportunity
5. Receive money for the investment
6. Disappear (the Ghosting Act)
7. Target the victim again (the Recovery Act)
How much would you expect to pay for such an important guidebook to modern life, one that hasn’t been produced previously? $20? $30? $50?
The Fraudster’s Playbook is actually free for anyone to download straight to their computer. Visit checkfirst.ca to get your copy.
Anyone can be impacted by fraud, the ASC asserts, as it has seen victims in every demographic and age group and geographic area of the province. Beyond this new Playbook, Albertans can increase their financial knowledge around investing by utilizing the free, unbiased resources on the Checkfirst and ASC websites. There is also a Playbook Quiz for Albertans to test if they can recognize a fraudster’s tricks, which can be found on the website landing page.
For more information about smart investing, you can visit the ASC website at albertasecurities.com.
