How to Protect Yourself From Investment Fraud Scams

Anyone can be a victim of investment fraud. The retired and elderly are often targets of investment scams, but anyone can be a victim. Protect your self by asking a few simple questions before you invest in any investment offer.

Difficulty: Easy

Instructions

Things You'll Need:

• Common sense and the ability to say "No"!

1. Practice the following statements:“I am sorry, I am not interested. Thank you.” “I never make investing decisions without first consulting with my (husband, attorney, banker, sister, etc). I will contact you if I am still interested.” Knowing what to say before they call is your exit strategy and it makes it easier to leave the conversation before the sales pressure starts.

2. Turn the tables and ask questions, lots and lots of questions. Ask the name of the firm, for a contact number, a mailing address, and a e-mail address. Never say yes on a firs time call.

3. Get a second and third opinion. Be extremely skeptical if the person promoting the deal says, “Don’t tell anyone else about this special deal!” A legitimate investment professional won’t ask you to keep secrets. It is always a good idea to discuss these sorts of decisions with family or a trusted financial professional before you make a decision.

4. Always check out the seller, ask who they are registerd with. Ask if their firm is registered with FINRA, the SEC, a state securities regulator? If they are registered, ask which one and then verify the answers by checking the seller’s background.

Tips & Warnings

• Never say yes to any offer that sounds too good to be true.
• Be very leary of any "time sensitive" offer.
• Discuss all offers of investments with someone you trust.
• Never send money to someone you don't know or did not contact unless you know exactly what you are getting in return.

Resources

• North American Securites
• SEC Investment Adviser Information
• FINRA Broker Information

[sanderdoe]

on 7/11/2009 Great tips on how to protect yourself from investment fraud. They prey on older people. 5*

[joycetmann]

on 7/11/2009 Great tips for folks of all ages regarding investment fraud. thanks. 5* and rec

[CaseyCarlton]

on 6/3/2009 It is so true if you know how to say No ahead of time. Thanks for the great tips on How to Protect Yourself From Investment Fraud Scams. 5 stars

[mnmommy]

on 3/16/2009 Great article, especially for house-bound and the elderly, who are often targeted by these types of calls. 5*