Expert Warns Consumers About Finance Fraud
Posted: October 7, 2011 at 5:55 a.m.
It’s been nearly three years since the $20 billion ponzi scheme — the largest on record — unraveled for the infamous fraudster, Bernie Madoff.
The Tips
Pays To Be Skeptical
The Justice Department offers the following tips for consumers to avoid scams.
• Be skeptical of those soliciting money. Do your due diligence. Check out every financial counselor you trust with your money. Start with the Investment Advisor Search feature on the Securities and Exchange Commission website.
• Be skeptical of exotic financial products you don’t understand.
• Be skeptical of “once in a lifetime claims.”
• Be highly skeptical of “guaranteed” or “risk free” investments.
• Be wary of investments tailored for specific groups such as seniors, religious sect or ethnic groups.
• Be skeptical of flimsy disclosures and verify statements with the custodian, don’t solely rely on statements produced by the investment adviser’s office.
• Be skeptical of returns consistently high, when the market is volatile.
Source: U.S. Department of Justice
Web Watch
www.investorswatchdog.com
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