How to Avoid Investment Fraud in Less than One Minute

Have you ever heard, “If it’s too good to be true, it probably is” ? Get Rich Schemes are designed to separate you from your money: yet, people often become victims of ‘double-your-money’ or ‘earn-lifetime-income’ programs. Here’s how to identify and avoid get rich quick schemes.

Types of Schemes – Ponzi, Pyramid, Matrix Schemes, High Yield investments and Affinity Fraud

Warning Signs!!

● You’re offered large profits with little effort or risk
● Provided with long lists of clients or members that are currently getting rich: pictures with yachts and beaches.
● You’re told to keep investment a secret or told it’s a members only opportunity.
● You’re asked to invest in a very complex structure. We like to stick with the old acronym K.I.S.S. (Keep It Simple Stupid )
● You’re asked to recruit members to make money.
● You’re told phrases like; “This is your last chance”, “Today only”, “Don’t miss out”,” Everybody is doing it”, and “We have “inside” information.
● Issues with paperwork and account statement errors

Protect your investment

● Beware of opportunities that guarantee income or interest rates.
● Don’t feel rushed or pressured to make a decision especially if it doesn’t fit your overall investment plan. You should feel comfortable asking questions concerning the safety and security of your investments. Credible investment professionals are knowledgeable and comfortable about their strategies and experience.
● Research the investment product, sales person and company. Search online message boards
and reviews. Background checks are also recommended.
● Get a second opinion from neutral professionals such as CPA, Attorney, Financial Advisors etc.
● Limit your exposure and never invest all your money in one product.

Where to go for help with Fraud?

U.S. Securities and Exchange Commission – Office of Investor Education and Advocacy
100 F Street, NE Washington, DC 20549-0213 Telephone: (800) 732-0330

Until Next time..

Michael Del Prete