The Financial Industry Regulatory Authority, commonly known as FINRA, issued an Investor Alert, warning of a variety of investment fraud schemes, including Ponzi schemes, pyramid schemes, "pump and dump" scams, advance fee frauds, and offshore investment frauds. The alert describes a number of psychological approaches investment fraudsters commonly use as well as outlining some of the "red flags" to watch out for. These include:- guarantees of returns
- unregistered products
- overly consistent returns
- complex strategies
- missing documentation
- account discrepancies
- pushy salesmen
Read the whole alert here.
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