How can I protect myself from investment fraud?

Investment fraud occurs when someone uses deception and misrepresentations in order to obtain money from an investor for what ultimately turns out to be a worthless or fraudulent investment. In Virginia, it is important to protect yourself from investment fraud. The first step to protect yourself is to understand the investment you are considering. Make sure you thoroughly research the company and its offerings so that you have an understanding of the investment before you make any decisions. You should also speak with a financial advisor or an attorney if you need additional information or advice. The second step to protect yourself is to be wary of unsolicited offers. Do not accept any offers or investments that you did not initiate or that you do not understand. Additionally, be wary of any guarantees of returns or promises of quick profits. The third step to protect yourself is to report potential investment fraud. All investment firms must be registered with the Virginia State Corporation Commission. If you are suspicious of a company you should contact the State Corporation Commission or the Securities and Exchange Commission (SEC). Finally, you should always keep records of your investments and contact information for the company you dealt with so that you have a record if you need to contact them in the future. By following these steps you can help protect yourself from being a victim to investment fraud in Virginia. However, it is important to remember that it is ultimately your responsibility to do your research and make informed decisions when investing your money.

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