Protect your nest egg, Alberta Securities Commission warns people 55 and older

The Alberta Securities Commission has launched a quiz to help warnpeople ages55 and older to be wary of fraudulent investment schemes perpetrated by people they know.

The online quiz,How Safe is Your Nest Egg, runs through questions to identify your danger level and offers tips to help educate people who may be at risk.

The commission recently hired Innovative Research Group to survey Albertans for signs they're vulnerable to "affinity fraud," which is fraud committed by anyone you know, like a friend, family member or even someone from church or the community. It's often related to financial investments.

"They kind of take your trust and use it against you and then take your money and invest into a fraudulent scam," said the commission's Ceilidh McMeekin. "And most frequently the funds from those scams aren't recovered."

The survey found that of all Albertans, four in 10 rely on people they know for financial advice and don't research their investments. For ages 55 and higher, only 42 per cent of women and 65 per cent of menresearchtheir investments.

Sixteen per cent have experienced at least one type of affinity financial abuse or fraudulent investment, which may include being pressured to give money to family.

'Double-edged blade'

The commission believes this age group is more susceptible to affinity scams, notbecause they're naive but because the generation shares a common value of trust.This age group can be very trustingof people in their lives and, according to the study, more than half don't talk to friends or family about finances a big warning sign that abuse could go unnoticed by loved ones.

There's also a perceptionthat people nearing retirement or in retirement have amassed wealth and have a nest egg, such as money in a bank account or their home.

"It's kind of a double-edged blade," McMeekin said. "We really want people to kind of take step back and let go of being afraid of being rude by asking questions and kind of drill a little bit deeper before they decide what to do with their money."

Marnie Harris, 68, attended a commission event on the weekend and saidthe message resonated with her. She's very active, thanks in large part to her four grandchildren, and considers herself knowledgeable and careful with finances.

But she has people in her life well-educated and retired from successful careers who have paid large sums to such schemes because they panicked and trusted what they were being told.

"Nobody wants to talk about it or admit it, so yeah,I think we better make them aware," Harris said. "I'd be more than happy to lead the team. I was really angry."

The Alberta Securities Commission is encouraging people to:

• Monitor your finances for unusual activity.
• Questioncarefully anyone with access to or interest in your money.
• Check theregistration and discipline history of your investment advisers.
• Do your own investmentresearch.
• Make use of tools on the commission's website, such as calculators and financial literature.

The commission's investor index research wasconductedby Innovative Research Group betweenMay11 and 18. It surveyed1,599 people living in Alberta, including750 peopleaged 55 or older.

• MORE CALGARY NEWS |Donated fire truck arrives in Mexico 8 months after firefighter started driving it there
• MORE CALGARY NEWS |Senior waited months for Fido to refund thousands after accidental bill overpayment
• Read more articles by CBC Calgary, like us on Facebook for updates and subscribe to our CBC Calgary newsletter for the day's news at a glance.

With files from Radio-Canada'sNelly Albrolaandthe Calgary Eyeopener.