BBB Unveils Three Strategies You Can Use to Prevent Investment Fraud
Investment scams and schemes are on the rise across the nation, which means
it is more important than ever to take extra precautions before investing
any of your hard-earned money in a new opportunity or with a new professional.
Ask questions, conduct your own research, verify claims, talk to other
investors, and seek the opinion of an informed, unbiased third party.
You also can use one of the
three investment fraud prevention strategies recently outlined by the Better Business Bureau:
Strategy #1: End the Conversation. Also known as “just say no,” this strategy can be boiled down
to simply saying “No, thank you” to any unsolicited investment
pitch. Unsolicited investments are significantly more likely to be fraudulent
than opportunities you seek out on your own. Unfortunately, anyone who
has ever tried to hang up on a cold caller knows how difficult getting
off the phone with a determined individual can be. “Knowing your
exit strategy in advance makes it easier to leave the conversation, even
if the pressure starts rising,” says the BBB.
Strategy #2: Turn the Tables. Instead of being on the receiving end of the conversation, begin to ask
questions. A reputable investment professional should be able to provide
solid, verifiable answers. For tips on which questions to ask, read our
“Questions to Ask Before Hiring a Broker.” To learn how to verify the information you receive, click
Strategy #3: Talk It Over. Con artists are infamous for using high-pressure sales tactics designed
to force you into a quick decision before you’ve had the time to
think it through. Some will go so far as to warn you against telling anyone
else about “this special deal” or “ground floor opportunity.”
The BBB suggests investors be “extremely skeptical” about
“A legitimate investment professional won’t ask you to keep
secrets,” says the BBB. Take the time you need to investigate the
potential investment opportunity and to talk it over with a trusted resource.
If the opportunity is legitimate, you’ll still be able to invest tomorrow.