If you never want to lose your money while trying to grow it in the securities market, then learn to spot fraudulent schemes. Unless you do it, there is no way to protect yourself against securities fraud.
Usually, people learn to differentiate between genuine financial schemes and fraud schemes with experience. However, if you want, you can follow the tips mentioned below and improve your understanding of them in a short period.
Identifying Securities Fraud:
The first sign of fraudulent securities or investment schemes is their fancy titles and whopping numbers. In short, they seem too good to be true and make you believe that you must invest your life savings in them, and if needed, borrow money from others and invest more to become a billionaire in a matter of a few years.
Avoid such schemes as much as possible. If it were that easy to become rich, the top wealthy people in the US wouldn’t have spent decades accumulating the wealth they have now.
The best you can do in such a case is to verify the credentials of any financial scheme you come across. Use FINRA BrokerCheck to get information about any brokers registered with SEC, FINRA, or the insurance regulator. If you cannot find a broker on this platform, then chances are he may be a fraud.
Don’t believe someone who promises you a huge rate of return consistently on any securities. The securities market is inconsistent and volatile. There is no way anyone can guarantee you a rate of return unless it’s a fixed deposit or other fixed-return investments backed by the government.
At times, you may also come across some brokers telling you stories about how thousands of others have benefitted by investing in their plans. Don’t fall for such stories if you want to keep your money safe.
In the worst-case scenario, if you have already made a mistake and trusted a broker who made you invest in a fraudulent scheme, then connect with www.erezlaw.com as soon as possible to explore all options you have to make him pay for this crime and recover your money.