Q. How to invest safely and not to become a victim of financial scams?
A. Below are 4 things every investor should do in order not to fall victim of financial scams -
1. Recognize the art of scam
Even you are financially sophisticated, you could still fall victim of financial scams, because investment fraud is a crime of persuasion. Be wary of high-yield and low-risk offers, as well as anything with a guarantee, question anyone who claims to have a special connection, experience, or affiliation to gain credibility.
2. Resist pressure
Do not be swayed by the claims that some celebrities or your friends are already on board, or take the small favors such as a free meal, lower commission, and walk away when hear the product has limited support or an imminent deadline, as con artists create such a false sense of urgency.
3. Do a background check
You can find registered securities firms and brokers, employment history, licensing status, criminal events, investor complaints, and pending investigations at https://brokercheck.finra.org
You can check an adviser at https://adviserinfo.sec.gov and https://www.nasaa.org, check out commodities, futures, and foreign exchange dealers at http://www.nfa.futures.org/basicnet
4. Research the pitch
You can use SEC's Edgar database to research securities https://www.sec.gov/edgar.shtml
A. Below are 4 things every investor should do in order not to fall victim of financial scams -
1. Recognize the art of scam
Even you are financially sophisticated, you could still fall victim of financial scams, because investment fraud is a crime of persuasion. Be wary of high-yield and low-risk offers, as well as anything with a guarantee, question anyone who claims to have a special connection, experience, or affiliation to gain credibility.
2. Resist pressure
Do not be swayed by the claims that some celebrities or your friends are already on board, or take the small favors such as a free meal, lower commission, and walk away when hear the product has limited support or an imminent deadline, as con artists create such a false sense of urgency.
3. Do a background check
You can find registered securities firms and brokers, employment history, licensing status, criminal events, investor complaints, and pending investigations at https://brokercheck.finra.org
You can check an adviser at https://adviserinfo.sec.gov and https://www.nasaa.org, check out commodities, futures, and foreign exchange dealers at http://www.nfa.futures.org/basicnet
4. Research the pitch
You can use SEC's Edgar database to research securities https://www.sec.gov/edgar.shtml
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