Strategies to Help Senior Investors Identify the Good Deals from the Bad

Investment fraud has many faces and sometimes it is difficult to identify when a deal isn’t legitimate. Scam artists are skilled in deception and they can make an offer sound so enticing, that it is difficult to walk away. As an investor, you need to arm yourself with the knowledge of how to recognize when someone is trying to defraud you of your hard-earned money.

The Financial Industry Regulatory Authority (FINRA) lists a few strategies that senior investors can use to identify potential fraud. These strategies are summarized below:

1. Ask a lot of questions. This strategy is key. Often times, people touting fraudulent investment deals will avoid answering questions. They will make the investment sound too complex to explain or they will dodge your questions all together. One of the questions you might ask would be - is the firm registered with FINRA, the Securities and Exchange Commission (SEC) or the state? Also, ask if the securities are registered.
2. Verify the information. After you ask your questions, confirm what you were told. Don’t simply rely on the salesperson’s answers. Use FINRA’s BrokerCheck and contact the appropriate regulatory agencies to verify the information. If the securities are supposedly registered with the SEC, double check with SEC’s EDGAR database to ensure that the salesperson was telling the truth.
3. Get outside advice. Talk with a financial professional whom you trust or a family member about the deal you are being offered. Scam artists will sometimes make statements that you shouldn’t tell anyone about the “special deal.” Don’t fall for that line.

FINRA describes investment scam artists well on its website – “They're masters of persuasion, tailoring their pitches to match the psychological profiles of their targets...Once they know which buttons to push, they'll bombard you with a flurry of influence tactics, which can leave even the savviest person in a haze.”

Use the strategies above to help you avoid investment schemes.

About the Law Firm of Meyer Wilson
If you have lost money in an investment scam, you may be able to recover your losses. For a free case evaluation, contact our office by calling 866-827-6537 or filling out our online form. Our investment fraud attorneys are licensed in Ohio and Californiaand represent investors nationwide in securities arbitration and litigation claims. We have successfully recovered millions of dollars for our clients.

Be sure to order a FREE copy of attorney David Meyer’s book, Five Signs of Investment Fraud…And What to Do if it's Happened to You.