Use our Risk Meter to see whether you share characteristics and behavior traits that have been shown to make some investors vulnerable to investment fraud. When contacted by FINRA, please speak with us-with your help, we may be able to pursue disciplinary action against a firm or broker and if you have a concern about a broker or brokerage firm, please reach out to us directly. The Important Role Customers Play in Assisting FINRA in Investigations.Learn how to protect yourself and your money. Learn how the FINRA Foundation works with partners to fight fraud, like the National Telemarketing Victim Call Center and a farmer.ĭon’t be taken in by these frauds and scams. Video: Flipping the Boiler Room to Fight Fraud.Hear from FINRA Foundation President, Gerri Walsh, about how Marylanders are doing with their finances. State and national securities regulators and legislators came together on Novemin Gaithersburg, MD to talk to area savers and investors about how to make informed investment decisions and to protect their retirement savings from fraud. Video: Marylanders Learn Investing Tips at Event with Senator Van Hollen.Before handing over any money, you need to check out the investment and the person selling it. It's often hard to resist an investment tip from someone in your social circle. How Social Pressure Cost One Family $30,000.Knowing the important warning signs of financial fraud puts you in charge.Īsk the right questions and verify the answers before you work with an investment professional or buy an investment product. To reduce the number of sales pitches you receive, use the Federal Trade Commission’s National Do Not Call Registry.įINRA offers an array of information and resources to help you outsmart investment fraud. Take your name off solicitation lists.Even if the seller and the investment are registered, discuss your decision first with a family member, investment professional, lawyer or accountant. Be extremely skeptical if the salesperson says, "Don't tell anyone else about this special deal!" A legitimate professional will not ask you to keep secrets. Before you give out information about yourself, ask and check. Have an exit strategy so you can leave the conversation if the pressure rises. Thank you." Let them know you'll think about it and get back to them. Practice saying "No." Simply say, "I'm sorry, I'm not interested. "There are only two units left, so I'd sign today if I were you." The "Scarcity" Tactic-creating a false sense of urgency by claiming limited supply."I'll give you a break on my commission if you buy now-half off." The "Reciprocity" Tactic-offering to do a small favor for you in return for a big favor.I know it's a lot of money, but I'm in-and so is my mom and half her church-and it's worth every dime." The "Social Consensus" Tactic-leading you to believe that other savvy investors have already invested."Believe me, as a senior vice president of XYZ Firm, I would never sell an investment that doesn't produce." The "Source Credibility" Tactic-trying to build credibility by claiming to be with a reputable firm or to have a special credential or experience."These gas wells are guaranteed to produce $6,800 a month in income." ![]() The "Phantom Riches" Tactic-dangling the prospect of wealth, enticing you with something you want but can't have.To entice you to invest, fraudsters use high pressure and a number of "tricks of the trade." Here are some common tactics: If you suspect that someone you know has been taken in by a scam, send a tip. If you believe you've been defrauded or treated unfairly by a securities professional or firm, file a complaint. They also target those with higher incomes and financial knowledge, and have had a recent health or financial change. Following the legendary Willie Sutton principle, fraudsters tend to go "where the money is"-and that means targeting older Americans who are nearing or already in retirement.įinancial fraudsters tend to go after people who are college-educated, optimistic and self-reliant. Even if you have never been subjected to an investment fraudster’s sales pitch, you probably know someone who has.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |