The International Organisation of Securities Commissions says it has released the results of its survey on anti-fraud messaging.
Anti-fraud messaging, according to the IOSCO, describes strategies used by some securities market regulators to educate individual investors on how to protect themselves against investment fraud.
According to a statement by the organisation, the report provides information and real examples of strategies that may help other IOSCO members identify effective methods of educating investors on investment fraud.
The survey, it said, was based on a fact-finding survey of the members of the IOSCO´s Committee on Retail Investors.
The report gathers information on types of fraudulent securities offerings or investment schemes in which investors have been victimised; common characteristics of such offerings or schemes; and common characteristics of victims of investment fraud.
Others are the content of anti-fraud messaging; communication channels used to deliver anti-fraud messages; and efforts to evaluate the effectiveness of anti-fraud messaging strategies.
The statement read in part, “Survey responses indicate that investment fraud has 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 of 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, according to IOSCO, also use a variety of communication channels to send anti-fraud messages, although the most common is the traditional website.
It said most respondents were exploring innovative methods to reach retail investors, including mobile apps, video games and multi-media public awareness campaigns, and collaborated with others in their jurisdictions to spread anti-fraud messages.
The Vice Chair, IOSCO Board, Howard Wetston, was quoted as saying, “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.”
“I trust that the report will be a helpful source for regulators in developing their own strategies to prevent fraudulent behaviours.”
Source : Punch
