Canadians and Their Money

Fraud Prevention and EducationWe praise the tremendous work of key public sector“Is financial fraud linked to a lack of financialliteracy? While it may not protect anagencies, law enforcement groups, financial institutions andindividual completely, more financiallyvoluntary organizations across the country that have long literate individuals will at least hear warningengaged in fraud prevention and education. Provincial bells about offers that seem too good to betrue and may further investigate an offersecurities commissions, for instance, vigorously promotebefore exposing themselves to risk.”investor awareness and protection, and use various means, – Baffin Regional Chamber of Commerceincluding their websites, to warn investors against Ponzischemes and other such scams. The combined efforts of these organizations haveprotected millions of Canadians from con artists, hackers and scammers.Despite these good efforts, financial fraud remains a real danger to manyCanadians. This issue was frequently mentioned during our consultation process,especially in relation to investing. Those at particular risk of becoming victims offinancial fraud include people living on low incomes, those “A 2007 CSA (Canadian Securitieswith high levels of debt and immigrant communities. Elderly Administrators) study indicates thatabout one in twenty Canadians haveCanadians are especially susceptible, as they are oftenbeen victims of investment fraud. A basictargeted by scams and fraudulent behaviour. Age-related understanding of the financial systemloss of mental capability adds to the vulnerability of seniors. would provide investors the confidence torigorously evaluate information receivedGiven that the population over the age of 65 is projectedfrom those promoting themselves asto grow by 35 percent between 2006 and 2026, 35 thefinancial advisors.”incidence of financial abuse of seniors could increase– Investment Industry Association of Canadasignificantly in the future.For these reasons, it is imperative that the above-noted organizations continue, andintensify, their fraud prevention and education efforts, with an emphasis on reachingout to vulnerable groups. By continuing to bolster the financial literacy of Canadians,particularly those at risk, these efforts will enable vulnerable Canadians to be moreinformed, more vigilant and better able to detect and prevent fraud.35 Statistics Canada. (2010). “Population projections: Canada, the provinces and territories.” The Daily.(May 26, 2010). Catalogue no. 91-520-XWE. Retrieved from www.statcan.gc.ca/daily-quotidien/100526/dq100526b-eng.htmTASK FORCE ON FINANCIAL LITERACY – IV. Delivery and Promotion 65