- October 21, 2020
In America, investor fraud is a serious issue. Approximately one in 10 investors, according to conservative estimates, at some point in their lives will be a victim of investment fraud. Currently, these are the most common types of fraud:
- Internet fraud
- Voter fraud
- Stolen tax refunds
- Bank account takeover
- Credit card and debit card fraud
- Healthcare fraud
- Fraud involving driver’s licenses
- Mail fraud
However, investor fraud is currently a significant problem. So, is there a way to successfully prevent investor fraud? Actually, we are going to show you seven ways in which to do everything you can to avoid this problem.
Avoid Late-Night TV Ads, Emails, and Robo Calls
Stopping Robo-calls isn't always easy. You answer the phone and before you know it, you’re part of a scam. Don’t answer the phone for numbers you don't recognize; that's one step. But you don't always have that luxury. If you do answer the phone, be careful what you say.
Companies considered legitimate don't use these methods to reach out to people. Don't be afraid to say “no” and stand your ground.
Emails can be blocked. Though phone numbers can be blocked, it's likely that scammers use a different phone number every time they make a call. Don't fall for TV ads late at night, either. Nothing is ever truly "as seen on TV".
Become Familiar with the Salesperson
Don't walk blindly into any transaction. If you can, follow the recommendation of a friend, relative, or reliable coworker. Don't give anyone your trust just because they seem trustworthy.
Stay Away from Reciprocity
Free lunch at a seminar may seem like a good idea but it is a common trick used to lure people in. If something seems too good to be true – it is. Never invest right away, even if it seems like a good idea. Think about something for 24 to 48 hours before making a decision.
If It Says "Act Now" – Don't!
This goes along with what we were just saying. Never act on impulse, and if someone tells you "Everyone's doing it.", no… everyone isn't.
Unbelievable Returns – Beware!
If someone refers to "Almost no risk with a huge upside", "breakout stock", or "incredible gains", watch out! These are huge fraud red flags. There is no such thing as a guaranteed return. NOTHING is guaranteed.
Research Like Crazy
Particularly in the day of the Internet, it is easier than ever to research almost anything. If you're not sure, Google it. Check out the legitimacy of a company and their track record before you make any investment.
Don't Be Afraid to Ask
Asking questions is not only allowed, it is preferred. If you're asking too many questions and it scares off a scammer, all the better. Here are a few queries:
- What's the liquidity of this investment?
- Are my investment and my investment goals properly aligned?
- In what ways might my investment be affected?
- In reference to the company asking for an investment, how do they make their money?
- Are there any fees involved?
- If a product is involved, is it registered with state securities agencies or SEC?
Weltz Law & Tackling Investment Fraud
In all aspects of commercial and securities litigation, Weltz Law, a securities law firm, has successfully represented numerous clients throughout New York. We represent clients in a full range commercial and securities litigation matters. At your leisure, you can review case material on our website that demonstrates the success others have benefited from through our efforts.
If you have been a victim of investment fraud, do not hesitate to contact the knowledgeable and experienced representatives at Weltz Law. We will fight tirelessly for your cause to get you the compensation you deserve. Particularly in times like the present, no one should have to suffer at the hands of scammers and fraudsters. We can help you overcome the difficulties posed by fraudulent investments. Contact us today to discuss your case.