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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 brochure, Scams and Swindles: An Educational Guide to Avoiding Investment Fraud.

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