The US has seen many Ponzi schemes in the past, and many more have yet to be uncovered. The best way to avoid being a victim is by recognizing the warning signs that something might not be right with your investment.
If you suspect fraud, it’s important to contact an investment protection attorney for assistance as soon as possible. This blog post talks about several other steps that you can take to avoid being victims of these schemes. Let’s dive in!
1) Investigate the people who are running the scheme
If you have any doubts about an investment opportunity, do your research. You can start by checking out if there’s a license for that type of investment. For example, everyone in Miami must have a real estate license before running an investment property.
If you’re thinking about investing with someone who doesn’t have the proper credentials, don’t do it! It’s not worth the risk of getting scammed.
2) Check the people who are investing
The US Securities and Exchange Commission has a “bad actor” list. This is where you can find out if someone has committed fraud in the past or been convicted of securities fraud, bribery, insider trading, market manipulation (theft), false advertising, etc.
3) Be wary of unsolicited offers
It’s always a good idea to be cautious about any investment that comes from an unknown source. If you’re not comfortable, don’t invest. Many organizations will try and help people avoid fraudulent schemes by sharing tips with the public. They’ll share what they’ve learned so far in their investigations on their social media pages.
4) Investigate the investment
If you’re not sure about it, don’t do it. If something feels off to you or if there’s too much of a risk involved, then stay away. Even when an opportunity sounds excellent and seems legit at first glance, be cautious before signing anything and investing your money into any company without more research done on them.
Lastly, hire a well-known investment protection attorney if you sense something fishy at any stage of your association with a broker or financial advisory firm. Follow these tips without failure to keep your money safe.