How You Can Spot Bait and Switch Investment Fraud
The bait and switch scam is one of the oldest tricks in the books, and
many investors lose money to these scams every year. As an
investment fraud lawyer, I understand that it can be difficult to separate the legitimate investment
opportunities from the investment scams, and I’d like to take a
moment to explain a little more about the red flags of the bait and switch.
Here are some of the major warning signs of bait and switch investment fraud:
It’s hidden in the fine print. Always read the “fine print” before you hand over your cash.
Sometimes just reading the documents you are given can shed light on fraud.
You don’t understand the investment plan. If you’re not sure you understand how the investment works or how
the promoter is paid, take a little more time to find out before you sign.
There’s little to no information about the promoter. You are checking up on the promoters, aren’t you? Make sure they
have all the necessary licensing and registration, and check into their
You end up getting something different. You may not even realize that you signed up for something other than what
was promoted. Read everything you are given and regularly scrutinize your
statements to make sure everything looks right.
The original deal is now “unavailable” or “you don’t
qualify.” Here’s one of the biggest signs of a bait and switch—being
pitched a different deal because you can’t get the original deal.
Be wary if you start hearing about how great another investment product
would be instead.
Remember these warning signs and become a
better informed investor.
If you have fallen victim to a bait and switch scam, it’s important
that you discuss your situation with a skilled investment fraud lawyer
before it’s too late. Meyer Wilson would be happy to speak with
you in a free and confidential legal consultation to discuss your rights
and options today. Simply give us a call or fill out our easy online contact
form to get started.