What are the red flags for investment scams?

Investment scams are unfortunately common in Washington. It is important to be aware of the warning signs for these types of scams. Red flags for investment fraud are promises of high returns with little or no risk, claims of insider information, unregistered investments, and requests for large deposits or fees upfront without written agreements. Investment schemes also often employ high-pressure sales tactics in order to try and convince you to invest. Be wary of anyone who encourages you to make quick decisions or puts time pressure on you. Legitimate investments usually allow you to take your time to research the details. You should always research any investment opportunity before committing. Be sure to check if the company is registered with the Securities and Exchange Commission or the Financial Industry Regulatory Authority. If you are unsure, you should consult with a financial adviser or the appropriate state or federal regulatory agency. It is important to be aware of any investments that require you to send money to someone in a different state or out of the country. Avoid investing in any deals that involve offshore or overseas accounts or companies. Furthermore, be cautious of investments that cannot be easily explained or that are not understandable. Finally, always remember if an offer seems too good to be true, it probably is.

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What are the red flags for investment scams?

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