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Meyer Wilson

Recovering Losses caused by Investment Misconduct

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Securities Fraud Attorneys Explain the Warning Signs of Social Media Investment Fraud

Our securities fraud attorneys recently released an article describing an alleged investment scam run through the social media site LinkedIn. The U.S. Securities and Exchange Commission responded to this alleged scam by focusing on educating investors on how social media investment scams work and devoting attention to revising their own monitoring systems to better handle the new online face of business.

If you use social media sites, such as Facebook, LinkedIn, Twitter, or other similar sites, it is important to understand the signs of social media investment scams and know when to be suspicious.

Signs of Social Media Investment Fraud:

  • No Risk/High Returns. There are risks with ANY investment, and if the expected returns are high, you should expect a higher risk associated with it. If it sounds too good to be true, it probably is.
  • Affinity fraud. Affinity fraud is a popular tactic, and social media lends itself well to it. Because social media allows people of similar backgrounds and interests to communicate freely, fraudsters can use that sense of similarity to sell you on a fishy pitch.
  • Unsolicited. Any investment opportunity that comes from someone you don't know should be taken with a serious grain of salt. Before you jump on board with an unsolicited investment opportunity, be sure you have done the research to know exactly who and what you are dealing with.
  • Pressure to buy. Some fraudsters will put the pressure on investors by offering a "once in a lifetime" opportunity or "limited-time offers" to try to get you to bite before you've had a chance to look into where your money is going.

If you have been taken in by a social media investment scam, you may be able to recover your losses. Speak with an expert securities fraud attorney today at 1-866-8-BROKER (1-866-827-6537) in a completely free, no-obligation legal consultation. Our FINRA lawyers represent harmed investors in stockbroker mediation, arbitration, and litigation nationwide.

If you'd like more information about protecting yourself from financial fraud, please request your FREE copy of our must-read book Five Signs of Investment Fraud ...And What to Do if it's Happened to You.