This is a podcast episode titled with a URL link from December 15, 2014, featuring Scott Chambers hosting the Financial Freedom Report. The episode provides advice on how to avoid investment scams, including tips on verifying credentials, checking backgrounds, and protecting investments from con artists.
Welcome to Financial Freedom Report. I'm Scott Chambers how to Avoid an Investment Scam Investing your money is a financial decision you want to have confidence in and even more confidence in the person who is handling your money. There are several con artists targeting their prey on new investors, making it hard to detect a scam from a good opportunity. By following these seven financial decision tips and advice you you will know what to look for and how to avoid an investment scam. Check Credentials and Background first off, your broker should be a certified financial planner professional. You can verify the validity of this registration@www.cfp.net. ask for reference checks for your protection. Background checks are completely acceptable and highly recommended when doing business with an investor. Verify their character and the way their operations are performed. You can always check up on your investment manager requesting a Financial Industry Regulatory Authority's broker check network available online. Seek outside resources. Several illegal investments are operated in their own broker dealer firm so their clients investment and money remains solely in their hands. Reach out to other financial firms like a custodian or who can help allay any concerns where the outside party can become responsible for key back office operations including execution and settlement of trades. Another valuable use of a custodian is the verification they hold on asset levels and returns. Protect your nest. Brokers who want your money to remain with them for a while and advise you to sit back and watch the opportunities roll in might be sitting back and enjoying your money more than your investment. Always question where your money is and request written updates on the progress of your investment. Appearances mean nothing. Con artists appear just as qualified as true investment advisors, so take appearance off the list when narrowing down a good broker to trust. The individual may look successful in their nice clothes and Lexus, but that success might come from being a scam artist, not a broker. Do your homework. Research their credentials to determine if their rich appearance is truly being generated from successful investments. When in doubt, get out. If you're confident in the opportunity, then be confident in the one handling your money. If you feel doubts in the advice or techniques of your broker, especially when they're advising you to hold off on pulling out profits or principal or wanting to roll over non existent profits into new and more alluring investments, then get out. There will be someone else who is open to your ideas and investment opportunities and more trusting to handle your money, just say no. Just because the salesperson is making validating points doesn't mean they are true facts or real deals. You can always say no, especially if the salesperson is demanding a signature or money up front request time to look things over and ask for their firm's information to confirm the investment opportunity is registered with a securities pay the firm, not your advisor. Never write out a check or send cash directly to your advisor. Your payment should always be to the firm or fund of your investment. As we stated earlier, there are scam artists out there waiting for the right prey to attack. But with the help of these tips to avoid investment scams, you will be able to steer away those con artists and invest your money in the right hands. For Financial Freedom Report, I'm Scott Chambers.
