If you have money, you are a target for stock fraud. It doesn't matter if you won the lottery, or saved every penny you could, whatever -- you have money, and scam artists want it. Keep in mind the following tips to avoid falling victim to stock fraud:
-Research, research, research. Do as much research as you can on the company, the product or service, and especially the salesperson. Even the most prestigious company can have a fraudster in their midst without even realizing it. You can go onto the SEC's web site to look at the company's financial statements and records, as well as salesperson's disciplinary history in the site's broker and advisor databases. The FINRA is another great resource to check on brokers. At the end of the day, it's better to let someone you already know and trust, or someone with whom you have a mutual friend, handle your investments, but that doesn't mean you shouldn't do a little background checking on him or her as well. Also, make sure there is current information about the company, as well. Remember -- there's no harm in a little investigation, especially when it comes to your money.
-Be wary of stock offers you get via e-mail, fax or Internet postings on social networking sites. In early October a $7 million stock fraud "pump-and-dump" scam was uncovered involving the use of Facebook and Twitter to post stock offerings. Be extra careful about "off-shore" investments; it will be much harder to deal with stock fraud abroad.
-If something sounds too good to be true, it most likely is, especially if general atmosphere in the stock world is not one of prosperity. Don't let yourself be blinded by the prospect of raking in a lot of cash, especially if something feels a bit off. "Guaranteed returns" do not exist. There is always the chance that you'll lose money on an investment; the stock market, no matter how much analysts try to predict what will happen, is unpredictable, and any broker who tells you otherwise either doesn't know what he or she is talking about, or knows exactly what he or she is talking about -- and knows it's rubbish. Even promises of extremely high returns should be considered with caution.
-Just because a company has a professional-looking web site doesn't mean they are a professional company. It's incredibly easy to create a good web site these days -- there are hosting sites that come with thousands of pre-made designs -- and costs next to nothing to buy a custom domain name.
-If a company is reluctant to provide you with a written contract, there is a problem. Any legitimate company should be perfectly happy to give you the particulars in writing.
Author Resource:-
Are you a victim of stock fraud? Stock Market Recovery Consultants Inc. can help you make a claim to recover your stock fraud losses. Call 1-800-STOCK-LOSS today or visit us online at StockFraud.com. We won't charge you a dime until we win your case.
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