How to Tell If Investors Are Fake
Investment scams take many forms. A common tactic involves impersonating an investment professional by creating an ‘altered version of their public FINRA BrokerCheck report.’
Scammers use social media platforms such as Facebook to advertise their fraudulent investments, so keep an eye out for any variations or typos in a sender’s name, profile name or screen name or email address.
Signing up for an account with a shady firm.
Investment scams can cost victims an immense amount of money. While digital technologies have created new fraud schemes, it’s still wise to watch out for warning signs.
Financial professionals reputable will never contact you out of the blue with investment offers or testimonials or celebrity endorsements that look promising, nor should testimonials or celebrity endorsements sway your decision – fraudsters often pay people like actors to endorse investments or create deepfake videos using deepfakes.
Affinity fraudsters aim to gain your trust through personal relationships or shared identities such as shared communities or workplaces. Before making any investments with an affinity fraudster, always check their registration as well as that of the firm they work for, especially solicitations requests asking for personal details like driver’s license numbers or Social Security numbers or remote access of any kind (like driver’s license numbers and Social Security numbers), remote computer access (like providing passwords etc), or any remote device access requesting personal details or remote computer/mobile device access; providing such access is highly risky and could result in identity theft; similarly it would be prudent to avoid investing opportunities that involve “crypto” assets altogether!
Being contacted by someone you don’t know.
Scammers will often contact you through social media, email or telephone with unexpected calls or texts purporting to be from friends or acquaintances, promising guaranteed or unrealistically high returns on an investment and soliciting information on your financial goals and personal details.
These individuals may try to convince you their company is legitimate by showing its website, toll-free number, office in an esteemed building or neighbourhood and prospectus exempt status; additionally they might insist that investors only qualified investors are permitted to invest. Anytime someone asks you to lie about your income or net worth this should raise a red flag.
Fraudsters use fake news articles, deepfake celebrity videos and other techniques to appear more credible when selling investments. To protect yourself, always take your time assessing an opportunity and getting second opinions before investing anything based on hot tips or inside information – this can put your finances in serious jeopardy.
Getting a slick brochure or glowing testimonials.
Brochure design should present an image consistent with that of your business to potential clients and provide engaging testimonials that resonate with them – client photos, logos or quotes should help demonstrate its value proposition to readers.
Investment scammers may contact you via phone, social media or email and present an attractive “investment opportunity.” They might make promises of guaranteed or unrealistically high returns on your money.
Investors frequently employ fake names and identities when marketing their investments, sometimes hiring actors to portray ordinary people transformed into millionaires, social media influencers or celebrities.
Legitimate investment professionals encourage investors to ask as many questions as they need about proposed investments, and gather as much information as possible. If an advisor refuses to respond or uses diversionary tactics instead of answering directly, that may indicate they’re hiding something. One effective way of avoiding fraud is through verifying claims independently – or you could use government’s free online tool “Check It Before You Buy.”
Being asked to provide your credit card or checking account number.
Fraudsters may try to acquire your personal data in order to verify or take control of your account. Only provide this data if it can be verified independently through other sources, such as an online search.
Avoid investing with any firm or person that does not hold a regulatory licence to sell securities in your jurisdiction, as well as those who use sham contact details or websites.
Always exercise caution with investment opportunities advertised as exclusive offers available only to privileged people, such as celebrities. Any time an offer or pressuring to invest quickly comes up, take your time before investing – reliable financial professionals encourage taking their time with the decision and thinking it through thoroughly before investing.
Categorised in: Blog