The Securities and Exchange Commission unveiled a public service announcement (PSA) to encourage investors to check the background of their investment professional by using the free search tool on Investor.gov before investing. Investor.gov, the SEC’s website dedicated to individual investors, provides investors with tools and resources to help them invest wisely and avoid fraud.
The PSA’s storyline involves a couple seeking advice from an alleged investment professional who turns out to be a fraud. At first, the investment professional seems genuine, but as the conversation continues his fraudulent scheme quickly unravels. He uses high-pressure sales tactics – typically a red flag of fraud – to persuade the couple to invest, with statements such as:
- You are definitely getting in at the perfect time
- This investment opportunity will not last long
- I can guarantee that your money will double
- There’s absolutely no risk to you
- You Just Made a BIG Mistake!
- This is Your LAST CHANCE to Join The XXXXXXX and secure your financial future
- Let Me Show You How to Make Cash LIVE Right Now
- Ride The Wave of XXXXXXX And you could earn up to XXXXXXXXX In Exactly 24 Hours
- Book the Profit NOW!
- The opportunities to make money are enormous
- The XXXXXXX Investment Jackpot Could Generate Massive Fortunes by XXXXXXXXX
- you’ll receive XXXX of our hottest trades, targeting fast gains, using a variety of proven trading strategies to help you chase money-doubling or money-tripling profits.
- Are you ready to rake in gains like 279%, 169%, or even 393% in just a matter of days?
The PSA stresses that most fraudsters are not this easy to spot and encourages investors to visit Investor.gov before investing.
It will not help you to get your money back, but it may save you from losing more.
People may try to use your lack of knowledge, try to surprise them, if you succeed it will be amazing.