What are the red flags for investment scams?

Investment fraud is a serious issue in West Virginia. It is important for investors to be aware of the signs of a potential scam. Red flags of a potential investment scam often include claims of guaranteed returns, high returns with little risk, or unregistered products. Another warning sign of potential investment fraud is an unsolicited offer. If someone contacts you directly with an offer for a new investment, be wary. Legitimate investments should never be marketed directly to the public. You should be especially wary of investments that seem too good to be true. If an investment is offering unrealistically high returns with no risk, it is likely a scam. Always ask for written materials about the product or service being offered and take your time to research the company and its offerings before investing. Pressure to act quickly can also be a red flag. Be wary of salespeople who try to pressure you into an investment before giving you time to research the offering. Legitimate investments do not require immediate action. In addition, always be mindful of investing with people you do not know. Never give out personal information, financial information, or account information to someone you have not verified as a legitimate financial advisor. It is always best to research a company and its offerings before investing, or to work with a trusted financial advisor that is registered with the SEC. It is important for all investors to be aware of the signs of a potential investment scam. By being knowledgeable and vigilant when making an investment, you can help protect yourself from fraud and make more informed financial decisions.

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What are the red flags for investment scams?

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