Tips on
How to Avoid Investment Frauds & Scams
An
informed investor is the best protection against securities fraud. Scam
artists prey on people who don't ask many questions and take the time to
understand the "mechanics" of a particular investment. Know how
to recognize fraud and reduce the possibility of falling victim to an
investment scam.
First,
make sure you get proper written information such as a prospectus or offering
materials before you buy. The documentation should contain enough clear
and accurate information to allow you or your adviser to evaluate and verify
the particulars of the investment. Most importantly, ask and
check on the investment promoter's background--make sure that person is
licensed to offer and sell investments in Michigan and does not have a
disciplinary history with regulators.
But
con artists are skilled liars and can make a fraudulent investment look and
sound legitimate. How can you tell the difference? Take note of the
following fraud
prevention tips on how to ask the right questions and verify the answers before
you invest:
FightingFraud 101
15 Questions That Can Turn Off a Swindle
How to Ask and Check Before You Invest?
WhenYour Broker Calls, Take Notes
Common Investment Scams and Red Flags
to Look For
Affinity Fraud
Oil and Gas Scams
Ponzi Schemes
Promissory Note
Don't Get Swept Away by Romance Sam by NASAA
Red Flags of Guardian Financial Abuse
Additional Resources:
FBI Internet Crime Complaint Center (IC3)
Investor Education Overview
Investment Fraud Awareness Quiz
Learn How to Identify and Report Frauds and Scams
Scams and Safety: Common Fraud Schemes FBI encounters.
Top Investor Threats
How to Check Your Investment Professional
Cryptocurrency
The information provided on this
website is not comprehensive, is not offered as legal or investment advice, and
is not a substitute for competent legal or financial counsel. The Securities
Division provides this information to give you an overview of the topics
discussed. You should not rely on the accuracy of this information but should
carefully review all applicable statutes and
regulations with the assistance of legal counsel.
Contact Us:
Department of Licensing and Regulatory Affairs (LARA)
Corporations, Securities & Commercial Licensing Bureau (CS&CL)
Securities and Audit Division
Address: PO Box 30018, Lansing, MI 48909
Overnight Mail (FedEx/UPS): 2407 N. Grand River Ave, Lansing, MI 48906
Phone: (517) 335-5237
Fax: (517) 763-0039
Email: LARA-CSCL-Securities-Audit@michigan.gov