Recovering Your Investment Losses is My Priority Get Experienced & Committed Counsel Talk to Me

Are You at Risk for Investment Fraud?

Simms Law, P.C. June 14, 2022

Investment fraud is a serious problem. Each year, countless individuals trust their finances to investment advisors and other financial professionals only to find their savings wiped out and their futures ruined. If you are an investor, it’s imperative that you understand the risk factors associated with investment fraud. Below is an overview of the characteristics of individuals who are the most vulnerable to this illicit practice. 

Characteristics Of Investment Fraud Victims 

The victims of investment fraud tend to share certain characteristics, including:

  • They equate money with success – While people often view wealth as a sign of success, victims of fraud are more likely than others to believe that the acquisition of money is one of life’s most important goals.

  • They’re open to sales pitches – Fraud victims tend to be more receptive to sales pitches than other people. And unfortunately, these are the types of people that scammers tend to target. 

  • They’re open to unregulated investments – Most cases of investment fraud involve securities and brokers that aren’t registered with regulatory authorities. Individuals who are open to such investments are more prone to becoming victims of investment fraud than those who aren’t. 

  • They don’t mind doing business with strangers – Victims of investment fraud are more likely than others to invest with a stranger via email or over the phone. In most cases, an investment should never be made without first making some kind of personal contact with a financial professional. 

Avoid investment fraud  

In addition to altering your behavior based on the information below, you should take the following actions to avoid becoming a victim of investment fraud:

  • Choose a financial professional who is regulated by the Securities and Exchange Commission.

  • Avoid any financial professional who wants too much control of your funds or who overemphasizes his or her trustworthiness.

  • Choose common investments that can be purchased and sold through reputable mutual fund companies or brokerage firms or mutual fund companies. 

  • Make sure your financial statements come from your brokerage firm, not your financial professional. 

  • Make all checks out to your brokerage firm, not your financial professional. 

  • Beware of promises of suspiciously high rates of return on your investments. 

  • Schedule a consultation with a Florida investor representation attorney

Contact A Florida Investor Representation Attorney Today

At Simms Law, P.A., one of our primary focuses is the representation of investors—including those investors who believe they’ve been the victims of financial fraud—in both litigation and FINRA arbitration. At Simms Law, we take your concerns seriously, and we are fully prepared to fight for your right to receive compensation for your losses. Therefore, if you suspect that any suspicious activity has occurred in any of your investment accounts, or if you believe that you have been misled about the nature and risks of any of your investments, please contact us today for a free consultation.