Detecting an investment scam is not always easy. Unfortunately, many investors are unaware of the fraud until they have lost their money. The NY Daily News recently posted an article entitled, 10 Signs You May Be Face-to-Face With An Investment Fraud Scam, which outlined many of the warning signs for investors.
Below is a summary of the investment fraud warning signs mentioned in the article:
- Promises of high earnings
- Investment is described as low risk
- There is a sense of urgency to invest
- Representative sounds confident about the money that will be made
- Representative is dressed for success
- Investors are encouraged to refer friends and family members
- Investment is complex or involves a little known product
- Representative avoids answering questions
- Third-party reviews (such as by a lawyer) are discouraged
- Nothing is in writing
You can take measures to protect yourself from investment fraud by looking into the background and history of the person or company you have been talking with and by carefully reviewing the investment offer. If you decide to move forward with the investment, make sure that you carefully monitor it.
About the Law Firm of David P. Meyer & Associates
If you have lost money due to investment fraud or broker misconduct, an experienced investment fraud attorney from our law firm may be able to help you. We are licensed in California and Ohio and we represent investors nationwide in securities arbitration and litigation claims.