Fraud knows no language barriers. And the B.C. Securities Commission (BCSC) has been active in rooting out scams targeting ethnic groups such as the sizeable Chinese community in Richmond.
It's been one of the highlights of Fraud Prevention Month in March, said Richard Gilhooley, spokesman for the BCSC.
But for there to be cases for the commission to investigate, there has to be willing victims to report the crime, something that had been lacking in the Chinese community.
To address that reluctance, Mandarin and Cantonese speaking staff have been on hand to field enquiries from victims, and an advertising campaign that also took into account language requirements was launched.
As a result, reporting instances of investment fraud is on the rise in that area.
Still, some inhibitions remain for victims to admit they were duped, especially when it comes to scams involving affinity fraud, Gilhooley said.
That method usually has the fraudster befriend a well-connected member of a community or religious group who is subtly convinced to spread the good word about an
investment deal.
"Often, it's the line, 'If it's a good enough deal for your family and friends, then it's good enough for you,'" said Gilhooley.
But there are some rule of thumb principles to remain aware of when considering any investment deal and it comes down to the type of promises a scammer presents.
"It's usually a low risk, high return deal," Gilhooley said.
"And that simply does not happen. The higher return on an investment means a higher risk."
In short, if the deals sounds too good be true, it is.
Plus, high pressure sales tactics are used in terms of offering deals for a very limited time, often to a restricted number of people.
"When you hear that, you have to think why is the deal just for a small group of people? Wouldn't there be an opportunity to make more money if more people were involved?" Gilhooley said.
The standard approach for investors is to remain suspicious of all investment proposals and do your due diligence in researching the offer being presented.
But if you still suspect you are being swindled, report your situation to the BCSC by calling its enquiry line at 604-899-6854, emailing [email protected], or visiting befraudaware.ca.
