SCAMS BULLETIN Host Jay White is a volunteer attorney who provides free legal services for low income seniors in San Mateo County, California.

May 13, 2020

INVESTMENT SCAMS

Prudent investment is a common means of increasing wealth. But there is always risk in investments. A con artist will tell you otherwise. You should know there is a risk before you invest.

Beware of promises that you will make big profits fast. No one can accurately predict how an investment will produce profit. Often the investments that promise the greatest pay-off have the most risk.

Investment guidance from a licensed professional should be obtained to minimize risk.
Investment considerations:

*Get the details in writing. Legitimate companies will be happy to give you all the information you need.

*Do not agree quickly. Pressure by anyone to act immediately is a sign of fraud.

*Understand your investments. Do your educational homework before you invest. Know differences between stocks and bonds, margin accounts, cash accounts, options, futures, mutual funds and certificates of deposit.

*Do not act on testimonials or suggestions from strangers. Someone who appears to want to share a friendly tip about a great investment opportunity may be a con artist trying to lure you into an investment scam.

*Be especially wary of investments in commodities. Crooks often promise that the value of investments in coins, precious metals, artwork, oil leases, gemstones, and other commodities will rise. The truth is the value of these types of investments can go up or down significantly.

*Steer clear of “offshore investments.” These are often promoted to avoid taxes. You will likely still be liable for taxes, and the investments themselves are usually very risky.

*Be cautious about emails for investments. Many unsolicited emails are fraudulent.

*Take the time to check out investment offers. A good place to start is with your state securities regulator. Other resources for information to help you make wise investment decisions include: U.S. Securities and Exchange Commission, 800- 732-0330; the North American Securities Administrators Association, 202-737-0900; and the National Futures Association (for investments in commodities), 800-621-3570.

Attribution: fraud.org