Could You Spot a Financial Fraudster?

By Brendan Hughes0 Comments

Investors beware: According the U.S. Securities and Exchange Commission, SEC, (www.sec.gov), frauds and fraudsters are always lurking, looking to take people’s money in financial schemes.

A section on the SEC website describes a number of deceptive tactics to be aware of, especially the use of fake phone numbers and “official-looking” seals that attempt to add credibility to the fraud. The article refers to a common practice of fraudsters, copying or creating similar seals to credible regulators, and passing them off within their own materials. Also, fraudsters will often make their investments appear to be approved or guaranteed by official agencies.

What can be done to prevent fraud? The SEC website provides a number of tips, including:
  • Make sure brokers are properly licensed
  • Do background checks on people offering investments
  • Be wary of anyone purporting to have a guarantee
At Equity Trust, we also have a section on our website dedicated to investor awareness including a page about fraud and scam advisories