Blogs » Legal Topics » Signs of Fraud to Look Out For

Signs of Fraud to Look Out For

  • Nobody has ever claimed that the financial industry and the laws that regulate it are simple. The truth is that they’re anything but. Making matters worse, securities fraud is rampant and often goes unnoticed—often because people don’t know what to look for.

    With that in mind, we’ve provided some helpful tips on how to recognize fraud when you encounter it:


    Guaranteed Returns

    No one—and we mean no one—can guarantee a return on an investment. While some transactions are certainly safer than others, the financial markets are volatile, and any trade can wind up losing money. If you’ve been guaranteed a return, you’ve likely encountered a form of offering fraud.


    Exclusive Offers and High Pressure Tactics

    Fraudsters often try to lure in investors by pressuring them into thinking they’ll lose out on a golden opportunity if they take the time to do their homework. When limited-time offers start getting thrown around and high-pressure sales tactics are employed, it’s often because the deal is terrible and a scammer doesn’t want you to take the time to investigate the offer.


    Claims of Other Investors

    Sometimes fraudsters use a form of peer pressure to get people to invest. If you’re being told that specific individuals have already invested and whose instincts and knowledge you trust, check it out. Find out if they’ve really put money down and what their thinking on the deal is—or whether they even know what you’re referring to.


    Lack of Documentation or Credentials

    Funds and investment firms that are legitimate will have the documentation and written credentials to prove it. If the person you’re working with is unable or unwilling to produce anything in writing, you might be dealing with a securities fraud scheme.


    Too Good to Be True

    If any part of the deal sounds unbelievably good, you should investigate to make sure that it isn’t an empty promise meant to part you with your money. As the old saying goes, “if it’s too good to be true, it probably is.”


    Securities Fraud Whistleblower Attorneys

    If you’ve encountered any of the signs of securities fraud detailed above, get in touch with an SEC whistleblower lawyer from Meissner Associates. We can help you determine what’s really going on and whether you might have an opportunity to earn a whistleblower reward.

    For a free, confidential tip evaluation, just visit us online or call us directly at 1-866-764-3100.