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Investment Scam Tactics to Watch Out for

Many of the red flags of investment fraud can be spotted just by listening to what investment promoters say—and how they say it. As an investment scam lawyer, I encourage investors to learn more about common scams and scam tactics so that they are better able to avoid investment fraud. To get started, here are a few of the common tactics scam artists might use:

  • Describing what it will be like when the money starts rolling in. Scammers rely on your desire to make fast cash, and they might try to keep you from looking too far into an investment by describing the lavish lifestyle you’ll be able to maintain.
  • Pressuring you to invest right away. Some scam artists will try to get you to invest before you’ve had time to look into the investment. If the promoter tells you an investment won’t be around tomorrow or pressures you to buy right away, it’s probably a scam.
  • Pointing out that “everyone else is doing it.” A fraudster might try to persuade you to invest by telling you about how many other people have already invested. Or, they may point to other members of your community or church congregation who have already found success. However, you should be suspicious if the promoter spends all of his or her time talking about other people who have invested rather than the specifics of the opportunity.
  • Offering a “free lunch” or other free offer to entice you to invest. Some fraudsters start out by offering you something for free because they hope it will make you feel indebted and more likely to buy into their investment. This is most often seen in the form of “free lunch” seminars that offer a complimentary meal and prizes to attendees.

If you believe you have lost money in an investment scam, you may be able to recover your investment losses through stockbroker mediation, arbitration, or litigation. Please speak with Meyer Wilson today for help. You can reach us by phone or by filling out our online form.

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 .

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