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.