FINRA Issues New Investor Alert, Avoiding Investment Scams

The Financial Industry Regulatory Authority (FINRA) issued a new Investor Alert called Avoiding Investment Scams which describes common types of tactics employed by fraudsters to solicit investors. FINRA advises of the following seven (7) red flags investors should look out for:

  1. Guarantees: Be wary of anyone who predicts how investments will perform.
    2. Unregistered Products: Many investments scams involve unlicensed individuals selling unregistered products.
    3. Overly Consistent Returns: Investments that provide steady returns regardless of current market conditions.
    4. Complex Strategies: Avoid anyone who cannot clearly explain their investment technique.
    5. Missing Documentation: A stock should have a prospectus or offering circular, if not the product may be unregistered.
    6. Account Discrepancies: Unauthorized trades, missing funds or other problems with your account statements could indicate churning or fraud.
    7. Pushy Salesperson: No reputable investment professional should push you to make an immediate decision about an investment.

If you and have suffered investment losses, please contact the Hanley Law to explore your legal options. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be able to recover your financial losses. Contact us today toll free at (239) 649-0050 for a free initial consultation.

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