Fight the Scams: Important Facts About Securities Fraud

It’s not a secret that scams are everywhere. They’re on the internet, they’re in the mail, and they can even be near your house! Scams take many different forms – from fake insurance to phishing emails. One of the most common types of fraud is securities fraud, also known as IPO or Secondary Market Fraud.

This blog post will discuss what securities fraud is and what it means for you, how to spot it, and some ways you can help yourself avoid being a victim.

What Is Security Fraud?

Security fraud is an illegal activity that involves trading in securities. Securities are financial assets, such as stocks, bonds, and other investments where you can purchase a share of ownership or debt owed by the company.

If someone sells fake stock certificates, that’s security fraud. If they trick investors into buying these with promises of future returns but never give them anything, that’s security fraud. If they trade securities by using fake identities or other illegal methods, that’s also security fraud.

How Can I Spot Security Fraud?

There are some ways you can detect if someone is committing a crime when selling an investment to you:

  • Notice any pressure to buy immediately without research: Scammers rely on pressure tactics to get people invested quickly so they can’t think through what’s happening.
  • Don’t let yourself be rushed into making a decision that could cost you later; slow down and take your time!
  • Be wary of asking for evidence: You don’t need to prove the authenticity of something to buy it – which is why you shouldn’t be expected to do so. If someone asks for this, it’s likely because the investment doesn’t exist or isn’t legitimate.
  • Be wary of high returns: Investments that promise incredibly high rates of return are usually scams, especially if they claim that you’ll make a lot more than other similar investments in a short period.

If you want to keep your money safe, try to notice these signs and avoid such investments. However, if you have already invested, then immediately contact a prominent investment loss lawyer like Erez Law to recover your funds before the scammer disappears from the market.