October 28, 2002

New Investment Scam PREVENTION Brochure Targets Seniors

Winnipeg - In conjunction with Senior's month, the Manitoba Securities Commission today released a new brochure that tells seniors how to protect their hard-earned money from investment scam artists.

The information in this brochure will help provide Manitobans with the tools to recognize and avoid investment scams and frauds. "Although there are several different investment scams operating in the province, the manner in which scam artists attempt to lure victims is pretty consistant," said Don Murray, Chair of the Manitoba Securities Commission. This brochure outlines typical tactics that scam artists use, some of which may include:

• Promises of high returns with low or no risk
• Use of technical terms to give the impression that the investment is legitimate
• Requests that you keep all conversations confidential
• Reluctance to provide any written documentation such as receipts for an investment or a prospectus
• Use of high-pressure sales tactics to rush an individual into making a decision

In addition, the brochure contains a handy tear out section that seniors can use as a quick reference when they are faced with an investment situation that may unnerve them.

The colourful large print brochure entitled "Protecting Your Finances: How to Avoid Investment Frauds and Scams" provides seniors with tips on how to protect their money. It recommends that they:

• Call the Commission to see if the individual selling the investment is registered to do business in Manitoba

• Ask lots of questions and make sure that they are provided the with answers
• Take notes of every conversation that they have concerning their investments
• Always get a second opinion, speak to someone that they trust, such as a friend or relative

"In 2001, Manitobans lost thousands, if not millions of dollars, to investment scams," said Murray. "Taking the time to read through this brochure may prevent an individual from making a poor investment decision; a decision that may cost them some, if not all, of their life savings."

For additional information on investment scams or to obtain a copy of the new brochure, contact the Manitoba Securities Commission at 945-4733 or access it on the MSC web site at www.msc.gov.mb.ca.