When it comes to investment fraud, a new study suggests Vancouver Islanders are the savviest at spotting warning signs.

But fewer than half of British Columbians are able to recognize all of the red flags, according to the B.C. Securities Commission.

The study asked respondents to identify scenarios associated with investment fraud, including:

  • Promises of high returns with minimal risk
  • Moving money outside of Canada to dodge taxes
  • Pressure to "act now"
  • Offers of inside information
  • Offers available to only a select few
  • Being urged to invest because friends and family are

Only 44 per cent of people who took part in the study could correctly identify all six scenarios as warning signs, according to the BCSC.

Vancouver Island residents were most likely to recognize all six warning signs at 55 per cent, compared to just 41 per cent of Lower Mainland or Fraser Valley residents.

The most recognized warning sign spotted by 77 per cent of people was a guarantee of high returns, low risk, while recommendations from friends or family was the least recognized warning sign.

The BCSC says the study shows that some people still have some work to do on how to spot potential fraud.

“B.C. residents aren’t naïve when it comes to investment fraud, with 65 per cent correctly identifying at least four of the six warning signs,” said Pamela McDonald, BCSC director of communications and education. “But one missed sign is sometimes all it takes for someone to be victimized.”

Out of the 12 per cent of British Columbians who reported being hoodwinked by investment fraud, men were twice as likely as women to say they had been victimized.

Another surprising stat? Age does bring wisdom, with 65 per cent of people over 65 years old likely to identity all six red flags – compared with a dismal 20 per cent in the 18- to 34-year-old range.

Anyone who suspects a possible investment fraud is asked to report it to the BCSC at 1-800-373-6393, or fill out a complaint form on the organization's website.

Innovative Research group surveyed 2,915 Canadian and B.C. respondents between Dec. 7 to Dec. 28, 2018, including an oversample of 1,407 British Columbians.

No margin of error is available because the survey was conducted online, and thus did not randomly sample the population.