March is Fraud Prevention Month, and experts say there are some old but very effective cons we still need to be aware of.
Pamela McDonald of the BC Security Commission says red flags for spotting a scam include promises of insider investments and low to zero risk, offshore tax-free opportunities, and high returns.
In addition, McDonald says anyone guaranteeing a return well above four per cent is suspect.
“If someone is offering you 8 or 10 per cent that should cause you to ask more questions,” she says.
READ MORE: Top 10 scams of 2015 to watch out for this year
Of particular concern to the Security Commission is affinity fraud, which happens in groups, clubs, associations, religious groups or ethnic groups.
It was affinity fraud that fueled the largest ponzi scheme in B.C. history, when former notary-public Rashida Samji defrauded 200 investors of $110 million.
READ MORE: 32 more charges laid in $100M ponzi scheme involving former Vancouver notary public
Samji is fighting to drop nearly 30 criminal charges, and has yet to pay any of her fine.
“It has wrecked a number of retirements, or certainly retirement plans,” said Scott Nicoll, a lawyer for Samji’s victims.
“All of the investments they made, were made by virtue or at least they were introduced to it by virtue, based on a personal relationship of someone they trusted.”
Nicoll believes that such scams are going to become more common.
“As I think the population ages, more and more money becomes available for investment, and they’re going to get more creative,” he says.
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