IDENTIFY INVESTMENT SCAMS AND POTENTIAL FRAUD

Investment Fraud Protection

IDENTIFY INVESTMENT SCAMS AND POTENTIAL FRAUD

It’s difficult to spot a well-planned investment scam, even for professional investors. Individual investors should become well informed of the various types of fraud in the sector they’re considering investing in. Make a personal investing rule to only making decisions after you’ve performed proper due diligence. When it comes to investing Information is Power.

There are many alternative investments you can make with your liquid capital and also with a self-directed IRA. Use these tips to spot investment scams as a guideline to vet various types of investment types including real estate, startups, business ventures, and many others.

Due Diligence Helps Avoid Investment Fraud 

Research your investment and verify the people behind it. Don’t be afraid to ask uncomfortable questions that deliver the answers required to make an informed decision in a timely manner.

  • Use Google and other outside sources (BrokerCheck EDGAR) for your research
  • Find out if the investment is registered with the SEC
  • Ask for investor references and verify verify verify
  • Review documents that depict past performance
  • Compare to its competitors.
  • Consider the benefits against the challenges of the investment.
  • Explore revenue and market, trends.

Investing with your Self-Directed IRA

  • Keep in mind that YOU are responsible for performing Due diligence in the investment. That is NOT the IRA Custodians Responsibility
  • Make sure the asset is permissible in a self-directed IRA.
  • Remember that collectibles and life insurance are not approved assets.
  • Ask your custodian if they allow the investment.
  • Understand all assets are titled in the name of your IRA.

SPOT INVESTMENT SCAMS AND IDENTIFY POTENTIAL FRAUD

There are various types of investment fraud. Spend some time reading up on how schemes work to identify red flags when reviewing an opportunity. There are a few other things you can do to further protect yourself from investment scams.

Finally, keep up with fraud with alerts from the U.S. Securities and Exchange Commission (SEC). Their resources are excellent in terms of education on the latest investment scams you need to avoid.