Popular Websites such as Craigslist and Meetup.com Act as Vehicles

VANCOUVER, B.C. – Friday, March 7, 2008 – Fraudulent investment schemes almost always sound wonderful at the beginning – in fact oftentimes they sound too good to be true.

Recently, the British Columbia Securities Commission (BCSC) issued a press release warning investors of online investment groups and meetups. It is through what’s known as social media websites that groups are created around investment strategies and advertise seminars for investment opportunities.

http://www.bcsc.bc.ca/release.aspx?id=6119

“This is a timely release, especially with so many seemingly can’t miss opportunities flooding the marketplace,” said Trading Post Financial Services VP, Marketing Communications Samuel Araki. “It’s important than ever for traders and investors to do their due diligence when deciding to make any purchasing decisions.”

Transparency is key to the investment decision-making process. Tips to working with a company can include factors such as, a physical address in a country that has securities regulations, a strong and visible management group, and a company background check with any number of consumer protection groups.

The following is an excerpt from the original BCSC release:

Social networking websites create an environment ripe for affinity fraud. Fraudsters can take advantage of the fact people can share information with both their real and “virtual” friends by posting it to their profile, joining a group or simply forwarding the information to others with their approval. Communication tools provided by some social networking websites make it easy to advertise and promote investment scams to a wide audience for free.

Fraudulent investment schemes usually exhibit one or more of the following red flags:
· Promise of high returns
· Great investment opportunity – your friends can’t be wrong
· Secrecy – an insider opportunity
· Tax-free investment or use of a structure to evade taxes
· Lack of receipts or documentation about the investment

“Oftentimes exaggerating claims of an investment opportunity without sufficient background can mislead investors,” Araki said. “If an opportunity needs atypical claims to attract attention, then it should set warning bells off for all investors.”


About Trading Post Financial Services
Trading Post Financial Services Inc. (TPFS) is a multi-structured company offering trading solutions and brokerage services, bringing together a global community of traders. Currently focused on the Foreign Currency Exchange (Forex) market, TPFS will expand to offer services in other financial markets. For additional information on TPFS, please visit: www.tradingpostfinancial.com.

About the British Columbia Securities Commission
The British Columbia Securities Commission (BCSC) is the independent provincial government agency responsible for regulating securities trading in British Columbia through the administration of the Securities Act. For more on the BCSC, please visit: www.bcsc.bc.ca. Learn how to avoid investment fraud at the BCSC's investor education website: www.investright.org