CSA Encourages Open "Money Talk" to Combat Financial Abuse

The Canadian Securities Administrators (CSA) is urging Canadians to openly discuss financial plans and goals with family members and loved ones to help prevent financial abuse.

According to the CSA's 2024 Investor Index, 36% of Canadians are aware of at least one instance of senior financial abuse – a 7% increase from 2020. Common types of abuse include fraudulent investment opportunities, pressure to sign unfamiliar documents, exploitation of power of attorney for financial gain, and unauthorized cashing in of investments.

Beyond financial loss, the CSA research shows that victims of financial fraud experience a loss of trust and confidence, higher stress, and feelings of anger and depression.

"Financial fraud and abuse can have devastating consequences that reach far beyond financial implications," said Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission. "By having candid conversations about finances, families can break the taboo around discussing money and build important understanding, support and trust that can help safeguard their loved ones’ well-being."

To help prevent financial abuse, the CSA encourages raising awareness of investment fraud red flags, such as unregistered individuals and investment firms, high-pressure sales tactics, promises of risk-free investments, and unexpected offers, especially those received via social media, dating or chat apps, or text messages.

The CSA also recommends staying alert to signs that friends or family members could be experiencing financial abuse. Warning signs may include unusual financial withdrawals, unexplained debts, or sudden changes in behavior.