The Office of Investor Education and Advocacy (OIEA) and Retail Strategy Task Force (RSTF) of the Securities and Exchange Commission (SEC) want Main Street investors to be aware of the techniques scammers employ to seduce them. This alert contains genuine films that SEC enforcement action defendants are accused of using in their alleged investment fraud schemes.

SEC government alerts the people that don’t be a victim of investment scams. They also describe the reasons why people fall for investment scams. Here we mention some easy steps that may guard you against being defrauded in an investment scam:

  • Verify the credentials of anyone offering or selling you an investment, and ask if they are currently licensed or registered. Using the free and straightforward search tools on just takes a few minutes. Check that the person is currently registered or licensed and see if they have a disciplinary past before you give them any money or your contact information. Investors can also use SALI to find out information on specific individuals who have had SEC court lawsuits or administrative processes judgments or orders imposed against them.
  • Watch out for tactics that scammers frequently employ to entice investors. Fraudsters entice victims into fraud using a variety of techniques, such as through promotional films, social media, email, phone conversations, and in-person encounters. If something seems too good to be true, it is probably true.
  • False endorsements. Scammers may pay individuals to write fictitious online evaluations or to appear in films where they falsely claim to have made a fortune from certain investment opportunities. On a website that claims to “review” items and investment opportunities, for instance, testimonials that appear to be impartial and unbiased reviews could also be a part of the fraud.
  • Scammers frequently assert that a good investment opportunity will disappear tomorrow. They build a false feeling of urgency, causing investors to transfer funds “right away” without doing due diligence on the investment. Investors may be duped into thinking that the investment “opportunity” has a deadline or is restricted to a particular number of investors who can participate in it. Some advertisements may set a deadline or include a false countdown.
  • Become Rich Quickly and Simply. One of the tricks scammers frequently employ is telling investors they will “become rich rapidly” or that they will make a lot of money quickly. Investors may be duped into thinking they would make huge money with little to no work by scammers.  This strategy frequently depicts extravagant lifestyles and opulent objects to give the impression of impending affluence.

Never base an investment choice purely on customer reviews. Additionally, pictures of soaring investment accounts are frequently phony. Risk is typically high when there is the possibility for big investment rewards. High investment returns promised with little to no risk is a common red flag of deception.

If someone tries to trick you with these lines, don’t fall for it. Protect yourself and others by alerting the SEC if you believe someone is attempting to defraud you through an investment scam.

Believe that it is possible to recover lost funds!