The Internet is a great place to be, if you’re an investor. That is, until you’re on the receiving end of a fraud scheme.
Investors flock to the web for news, advice, information and research. Whether it’s looking up current strategies or individual stocks, checking out possible financial advisers and firms or posting comments on a favorite finance site-the web gives us endless possibilities to connect. But, there’s a downside. Unless you have a sign to warn off solicitors on your social media profiles as well as on the front door of your home, you’re going to be approached by some less-than-honest types now and then. Here are some telltale warning signs – and don’t be surprised if they seem familiar.
Fraudulent schemes might use:
Social media is not the issue. Fraud just has a new place to operate.
Think of an overpromising post as an unsolicited phone call, a spam email or someone standing at your front door with a great offer for you-if only you give them money right now. Would you hand it over, no questions asked? Probably not. So, just as you’ve learned to say, “No thank you, I’m not interested,” in those situations, you now have to train yourself to act the same way in this medium.
If you’ve been burned by investment fraud, don’t expect to recover your losses without the help of an attorney, and make sure you report the activity to the Securities & Exchange Commission.