Although many people assume that more experienced investors don’t have to worry about falling for investment fraud, it’s exactly this kind of sentiment that gets even savvy investors in trouble. Although some inexperienced investors might fall for tricks you can spot instantly, fraudsters are often very sophisticated, and even experienced investors are not completely immune.
Why Experienced Investors Are Not Immune to Fraud
- Many fraudsters are good at what they do.
Although some fraud attempts may seem bumbling to the experienced eye, many investment scams are run by people with an intimate and sophisticated understanding of the playing field. Underestimating the skill of fraudsters can be a big mistake.
- You let the research slide.
If you’ve been investing for a while, you may be tempted to skip the research once in a while. Keep in mind that thorough research before handing over your cash is one of the easiest ways to avoid financial services fraud. Try FINRA's BrokerCheck.
- You overestimate your own knowledge and skill.
If you’ve been successfully handling your own portfolio for a while, you may feel like you know everything you need to know about fraud. Be aware that investment fraud is always evolving, and fraudsters are still coming up with new tricks you haven’t seen before.
- You assume education is the same thing as experience.
No matter what your educational background is, it’s important to remember that—in this case—“hands-on” experience can be more valuable. For example, investors who have been successfully handling their own portfolios for years and always pore over every financial document they receive may understand more about fraud than someone who only has an academic understanding of financial markets.
No matter how long you’ve been investing or how you choose to invest, it is still possible to become the victim of investment fraud. Read more about learning how to tell if your money losses resulted from investment fraud here. Please give us a call for a confidential, no-cost consultation by phone to get help after you have suffered investment losses due to fraud. The investment fraud lawyers with the law firm of Meyer Wilson have represented more than 800 investors nationwide, and we would be happy to put our knowledge, skills, and experience to work for you.
The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .