How Can You Protect Yourself From Securities Fraud Aug31

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How Can You Protect Yourself From Securities Fraud

Securities fraud is a serious issue that many people don’t know how to protect themselves from. The Securities and Exchange Commission (SEC) has made it their job to keep the public safe, but for those who aren’t sure where to start, this article will help you understand what securities fraud is and how you can avoid becoming a victim of such an attack.

The SEC defines securities fraud as “fraudulent conduct in connection with the sale of securities.” This includes everything from insider trading, market manipulation, Ponzi schemes, or any other form of investment scheme intended to deceive investors out of their money.

If you are looking for ways to protect yourself from being victimized by these types of attacks, we have compiled a list of tips below to help you stay safe.

  • If an investment is advertised as “too good to be true,” it probably is, so don’t invest any money in such a situation.
  • Research the company and find out who they are before investing your funds with them or recommending their services to others. If there’s a story behind the company that sounds too good to be true, it probably is.
  • Avoid investing in penny stocks as there’s a greater chance of market manipulation happening and these types of investments are riskier, to begin with.
  • Don’t invest your life savings into any one investment or make rash decisions when you’re tired or not thinking clearly, as this leads to more mistakes.
  • Be very careful not to give out personal information or allow yourself to be duped by strangers who want your money. The internet can make it seem like you’re talking with someone in person when in reality, they could be halfway around the world and using a fake identity to get what they want from you.

Connect with an investment fraud lawyer like Erez Law as soon as possible if you think fraud has victimized you. Some lawyers specialize in helping investors get their money back, and the sooner they know about it, the faster they can help.

If you keep these points in mind, you can easily save your hard-earned money safe from scammers and fraudulent schemes.