How To Avoid An Investment Scam
Your best friend has just come to you with the investment of a lifetime, stop! You need to decide if the investment is a scam or not. Even your best friend can be fooled by an investment scam artist. Below are some investment red flags that can help you avoid the many scams that are out there.
Investment Red Flags
- They promise a “guaranteed” return.
- They want you to deal only with them.
- They tell you the Investment has to be made right now.
- They do not want you to tell anyone else about the investment.
- They tell you to sell your other investments and invest with them.
- They tell you to invest because of the recommendation of a respected member in your community.
- They are unlicensed individuals selling unregistered securities.
- They try to sell you an investment with no documentation like a prospectus.
You can check to see if your investment adviser is a scam artist here: FINRA BrokerCheck.
You can file a complaint against an investment adviser here: FINRA Investor Complaint Center.