Nearly half of B.C. residents are likely to accept investment offers if they came from friends or family, according to a survey.
That’s according to a survey by the British Columbia Securities Commission (BCSC), whereby 800 B.C. residents were asked how they would react to an investment opportunity that would guarantee a monthly return of 10 to 15 per cent, with no risk.
The survey’s aim was to measure the residents’ likelihood of falling into the “trust trap” – a questionable investment tip from friends or family.
Results of the survey revealed the most vulnerable individuals were aged 18 to 34 year olds, where 47 per cent of them would consider such an offer.
According to BCSC, 29 per cent of the 800 British Columbians interviewed said it was “worth looking into” if the offer came from a friend or family member.
Doug Muir, director of enforcement at BCSC, said fraudsters often exploit the trust and friendship in a tight-knit group.
“Investors need to do their own research before making an investment, and shouldn’t just rely on advice from their friends, family or co-workers,” he said in a statement.
Twenty per cent responded they would consider it if the offer came from someone at a social event.
People aged 35 to 54, were almost twice as likely to consider a dodgy investment offer from a friend and relative in comparison to someone at a social event.
Meanwhile, those aged 55 and older were most skeptical in this situation, with only 12 per cent willing to consider such an investment.
