NFA's Logo
Home > FAQs > Investor Information > Investment Fraud > What are some of the characteristics...

What are some of the characteristics of investment fraud?

Some characteristics of investment fraud include:

  • The use of high-pressured sales tactics;
    Some swindlers may result to insulting or arguing with you if they sense you will not be an "easy-sell," shifting to a "hard-sell" approach.
  • A request for credit card information other than to make a purchase;
    Be careful about providing personal and credit card information for "identification" purposes. Unwanted charges may appear on your credit card bill without your knowledge.
  • An offer that sounds too good to be true; and
    Be wary of investment schemes that promise significant returns. As the age-old saying goes, "If it is too good to be true, then it probably is."
  • A "demand" for an immediate decision.
    Fraudsters are very persuasive and always have an answer that may sound reasonable to you. Never let a swindler pressure you to make a hasty decision.

For more in-depth information about the characteristics of investment fraud, read NFA's Scams and Swindles: An Educational Guide to Avoiding Investment Fraud.

NFA is the premier independent provider of efficient and innovative regulatory programs that safeguard the integrity of the derivatives markets.
Site Index | Contact NFA | News Center | FAQs | Career Opportunities | Industry Links | Home
© National Futures Association All Rights Reserved. | Disclaimer and Privacy Policy