Key Warning Signs of Cold Calling Investment Fraud Scams

Investment fraud scams are rampant, often targeting the elderly. Cold calls about investment opportunities are one of the ways that people get involved in fraudulent investment schemes. The callers often are reading from impressive scripts that might sound a little too good to be true; however, your concerns are quickly quelled by a list of impressive facts, credentials, and perfectly placed reassurances. It all sounds very good.

Scam artists on these kind of investment frauds are well-rehearsed, leading unwitting investors into fraudulent schemes that can end up costing them a fortune.

Here is a list provided by the NASAA Investor Education Site on how to avoid being a victim of cold calling investment fraud scams: 



1. Ask your state securities agency for help. When you are contacted by a securities industry representative, particularly if you do not know this person or have not heard of the firm, you should call your state securities agency in order to learn more about the caller and the firm. The simplest inquiry is to ask if they are registered to do business in your state. But you should also ask about the record of the firm and its representative. Are there any past disciplinary events? Are they subject to past complaints? Are they under active investigation? Are there other customer complaints in your state against this firm or agent? The majority of this information is available if you only ask.



2. Ask questions. Even if everything checks out with the state, don't rely on a company's glossy brochure. You need to ask about the investments themselves. Where is the company traded? Is it listed in the stock tables printed in your local newspaper? Investigate its trading history. Make phone calls. Find out more about it. Ask the salesperson -- who is making a market in the stock? Who else is buying in your area? Is the salesperson's firm making a market in this company? The reason you want to ask is that they might be the only market maker. And they might be using cold calling techniques to create a buy demand for a stock that insiders will sell when the price is driven high enough.

3. Contact an investment fraud attorney. If these warning signs look familiar, and you believe you have been a victim of investment fraud, not all is necessarily lost. With the help of an experienced investment fraud attorney, you may be able to recover the money that you thought was gone.

The Law Firm of Meyer Wilson

For more information about your legal rights, contact the investment fraud lawyers at the Law Firm of Meyer Wilson today. You can reach us toll free 866-8-BROKER (827-6537).