Many of the
red flags of investment fraud can be spotted just by listening to what investment promoters say—and
how they say it. As an investment scam lawyer, I encourage investors to
learn more about common scams and scam tactics so that they are better
able to avoid investment fraud.
To get started, here are a few of the common tactics scam artists might use:
Describing what it will be like when the money starts rolling in. Scammers rely on your desire to make fast cash, and they might try to
keep you from looking too far into an investment by describing the lavish
lifestyle you’ll be able to maintain.
Pressuring you to invest right away. Some scam artists will try to get you to invest before you’ve had
time to look into the investment. If the promoter tells you an investment
won’t be around tomorrow or pressures you to buy right away, it’s
probably a scam.
Pointing out that “everyone else is doing it.” A fraudster might try to persuade you to invest by telling you about how
many other people have already invested. Or, they may point to other members
of your community or church congregation who have already found success.
However, you should be suspicious if the promoter spends all of his or
her time talking about other people who have invested rather than the
specifics of the opportunity.
Offering a “free lunch” or other free offer to entice you to invest. Some fraudsters start out by offering you something for free because they
hope it will make you feel indebted and more likely to buy into their
investment. This is most often seen in the form of
“free lunch” seminars that offer a complimentary meal and prizes to attendees.
If you believe you have lost money in an investment scam, you may be able
to recover your investment losses through stockbroker mediation, arbitration,
or litigation. Please speak with Meyer Wilson today for help. You can
reach us by phone or by
filling out our online form.