Investment fraud, which may also be referred to as stock fraud or securities fraud, involves deceiving potential investors into investing their money in some stock or commodity that doesn’t exist or that is not worth as much as the perpetrators of fraud allege it to be. Investment fraud can be particularly insidious to unknowing investors and/or those who do have a lot of assets because it can ultimately leave these people in financial ruin, causing them to potentially lose their life savings and possibly even to need to file for bankruptcy.
Given the serious consequences of being duped by investment fraud, as well as the fact that scam artists are coming up with new ways to try to defraud the public every day, it’s important that you are aware of the signs of investment fraud scams so that:
- You can avoid losing your hard-earned money to them.
- You can report such scams to the authorities to ensure that the scam artists are held accountable.
Questions to Ask to Protect Yourself from Investment Fraud Scams
If you are presented with an investment opportunity, ask yourself the following questions to help you evaluate whether the opportunity is, in fact, an investment fraud scam:
- Were you approached with this opportunity without seeking it out? (This can be a giant red flag.)
- Do you feel as though you are being steamrolled with high-pressure tactics? (If the answer is “yes,” you may want to steer clear of this “investment.”)
- Have you been asked to provide sensitive personal information (like your social security or credit card numbers) via the phone or Internet? (If so, do NOT give up this information nor invest your money in this “opportunity.”)
- Is the “opportunity” too good to be true? (If so, then there’s got to be a catch, and you should steer clear of this “investment.” Any legitimate investment opportunity usually has some potential downsides, and honest people presenting you with such opportunities should be clear about these possible drawbacks).
For additional information regarding how you can protect yourself from losing money to investment fraud schemes, see the upcoming Part 2 of this blog.
Colorado Bankruptcy Lawyers
If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. For more than 35 years, Mr. Clarke and his diligent support staff have been successfully helping our clients resolve even the most complex bankruptcy cases for both individuals and businesses alike. Our experienced legal professionals are committed to providing each of our Clients with the personalized debt relief assistance they need, and we will work tirelessly to ensure that our Clients’ cases are resolved as favorably and efficiently as possible.
For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950 or email us some details about your situation by clicking here.