Beware Investment Fraud

Deceptive pitches for investments often misrepresent or leave out facts in order to promote fantastic profits with little risk. No investment is risk-free and a high rate of return means greater risk. Before investing, get written information such as a prospectus or annual report. Beware if a salesperson:

  • Encourages you to borrow money or cash in retirement funds to invest
  • Pressures you to invest immediately
  • Promises quick profits
  • Says that the disclosure documents required by federal law are just a formality
  • Tells you to write false information on your account form
  • Sends material with typos or misspellings or not printed on letterhead
  • Does not send your money promptly
  • Offers to share inside information
  • Uses words like “guarantee,” “high return,” “limited offer,” or “as safe as a CD”
  • Uses the phrase “this investment is IRA approved”
  • Claims “off-shore investments are tax-free and confidential”
Source: Federal Citizen Information Center