4 steps to avoid investment scams

Chances are, you may have taken in your life at some point, or you know who owns. Nearly half of the victims of a recent survey by the Center for longevity and FINRA Investor Education Foundation, Stanford University reported a financial consumer fraud in the past year, much higher than the tally display than the previous survey. No socio-economic or demographic group is immune. “Men and women, students and retirees, rich or poor, are all potential targets,” the authors of the report found. The victims, nearly 40% of people never tells a man about fraud.

Estimated that there is a problem, but the Americans are considered to lose about $ 50 billion per year financial fraud. But also indirect costs: bounced checks, late fees, trouble every month expensES, or even bankruptcy. 50% So it is not surprising that fraud emotional cost is also high, the victim reported severe stress and more than a third cited depression. Toll senior victim complex, who did not have time to make up for lost resources. “When the old man lost his life savings, they lose hope,” Ricky Locklar, investment fraud investigators say the Alabama Securities Commission. “For me, these crimes are worse than others robbed at gunpoint corner pharmacy.”

Here are four steps investors should take to protect themselves:

1. Recognizing the artistic CON. scammers and financial knowledge of the victim, because the investment fraud is a crime to persuade succeed. Wary of high-yield, low-risk benefits, such as every l Because what guarantee. Asked who advocate a special certificate, experience or affiliation, to win credibility.

2. Withstand pressure. applied liar claimed that other savvy investors, whether celebrities or members of your church community has been pressure on the ship. Do not be swayed by small favors, such as cuts, the commission rate or free meals, not being limited supply of emergency aimed at creating the illusion of claims rushed. Through interactive play FINRA’s “Con” time, if you can “game in www.conemifyoucan.org understand persuasion tactics.

3. Do a background check. You can find information about registration securities companies and brokersIncluding work experience, licensing status, criminal events, investor information complai NTS and to be investigated, in https://brokercheck.finra.org. If you have a consultant’s work, check out the https://adviserinfo.sec.gov about the firm and key personnel, including some disciplinary action information. You can also search for personal viewing this person’s professional background and behavior. In www.nasaa.org, you will find your national securities regulators, have access to a large number of employment opportunities through it, discipline and registration information for the broker or investment adviser. Check commodities, futures or forex trader in www.nfa.futures.org/basicnet.

4. Research pitch. using SEC EDGAR database of the Securities studies (www.sec.gov/edgar.shtml), or check out the status of your regulator.