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Protection from Securities Fraud, Part III

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This is the last part in a three part series on avoiding becoming the victim of investment fraud.

Be aware of excessive delays when you request to withdrawal your money from the person or company with whom you are investing. They may give you complicated excuses for why your money is not available for withdrawal. The truth is if you are not invested in a fixed term security, like bonds, there is no real reason you would not be able to receive your funds in a couple days.

Report any suspected investment fraud or abuse at once, delay may hurt your ability to recover some or all of your investment. While many victims of investment fraud may feel scared or a little embarrassed, it is crucial that you report all possible violations to the Securities Board.

Finally, beware of investment fraud known as a “reload scheme.” Con artists use the panic following investment losses to strike against investors. They develop schemes that promise high returns to victims who hope to recoup their investment losses. Always be wary of the promise of a high return with low risk. Again, always be wary of the promise of a high return with low risk. This is a bright red warning for all investors.

These steps will help defend consumers against investment fraud. Remember these investing tips and you will avoid being an easy target of con artist’s attacks.