Madrid, 06 May 2015.- The International Organization of Securities Commissions (IOSCO) today published the results of its Survey on Anti-fraud Messaging, which describes strategies used by some securities market regulators to educate individual investors about how to protect themselves against investment fraud.
The report provides information and real examples of strategies that may help other IOSCO members identify effective methods of educating investors about investment fraud. The report is based on a fact-finding survey of the members of IOSCO´s Committee on Retail Investors gathering information on issues such as:
- types of fraudulent securities offerings or investment schemes in which investors have been victimized;
- common characteristics of such offerings or schemes;
- common characteristics of victims of investment fraud;
- content of anti-fraud messaging;
- communication channels used to deliver anti-fraud messages; and
- efforts to evaluate the effectiveness of anti-fraud messaging strategies.
Survey responses indicated that investment fraud has many of the same characteristics across jurisdictions. Fraudsters cold-call investors or send unsolicited emails, offering unrealistic returns or using other high-pressure sales or persuasion tactics.
In addition to raising awareness about common persuasion tactics, survey respondents also issue a similar variety of anti-fraud messages: Some warn against specific scams, but most focus on the importance of dealing with a registered investment professional (and to some extent, a registered investment product).
The securities regulators surveyed also use a variety of communication channels to send anti-fraud messages, although the most common is the traditional website. Most respondents are exploring innovative methods to reach retail investors, including mobile apps, video games and multi-media public awareness campaigns, and collaborate with others in their jurisdictions to spread anti-fraud messages.
“This report illustrates with concrete, creative and innovative examples taken from many parts of the world, how regulators are engaged with investors to raise awareness of investment fraud,” said Howard Wetston, Q.C., Vice Chair of the IOSCO Board, Chair of the Committee on Retail Investors and Chair of the Ontario Securities Commission. “I trust that the report will be a helpful source for regulators in developing their own strategies to prevent fraudulent behaviors.”