Dale Jackson

Personal Finance Columnist, Payback Time

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“Psst… If you want in on an investment that is guaranteed to take off – no risk – you better act now.”

That’s the general pitch from boiler room scammers looking to take your money and disappear.

To mark Financial Literacy Month, Canada’s security regulators are highlighting all the research tools available to the average investors, and warning of scams that could put your retirement savings in jeopardy.

The basic boiler room scam operates in two parts. First, a team fans out through phones and the Internet, and makes contact with potential victims through methods like phony surveys to gauge investment experience or free research to get your contacts.

Next comes the boiler room part: High-pressure tactics saying you’ve been selected to invest in a high-return, low-risk venture that seems too good to be true. The pitch usually includes a time limit and an easy way to transfer money.

In almost every case, it is too good to be true.

The Canadian Securities Administrators (CSA) advises anyone who receives a similar email pitch to not respond, and anyone who receives a similar phone pitch to hang up.

Above all, the CSA says never give out personal information. If you want to look into the investment independently, do not click on links provided by the sender. While it may look like a reputable site, it could be fake.

If you think it might be legitimate, public disclosure documents can be found at SEDAR or news services such as Canada NewsWire.

If you think it’s a scam, report it to your provincial securities regulator or local police department.        

Dale Jackson is BNN's Personal Investor. Follow him on Twitter @DaleJacksonPI