What are the red flags for investment scams?

Investment fraud is a serious issue in Virginia, and it’s important to watch out for red flags that may signal a scam. One red flag is an offer that sounds too good to be true. If someone is promising easy, quick, and above-average returns on investments, it might be a scam. Other signs include aggressive sales tactics, limited information about the product and sudden changes in the investment’s returns. Another warning sign is a salesperson that tells you the investment is “risk-free” or “guaranteed.” All investments have some level of risk, and fraudsters may exaggerate the security of their investments in order to entice people to invest. It’s important to invest in something you fully understand and trust. Remember, if it sounds too good to be true, it probably is. Make sure to research any investment thoroughly and check the credentials of the salesperson before investing any money. Be wary of people trying to pressure you into making a decision quickly. Investment fraudsters tend to target seniors and retirees, so if you have an elderly family member or friend, make sure they are aware of these red flags.

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What are the red flags for investment scams?

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