Scams. This world is full of them. There are people out there who have no moral qualms about taking from others who have worked and giving nothing in return. They profit from people’s good nature or from those two base emotions we hear so much about in our industry: fear and greed. Our industry is no exception to the rule as it comes to scam artists. In fact, we are MORE susceptible to them due to the nature of what our business is. That is why trusting your advisor is of the utmost importance when choosing them to manage your investments.
Sadly, in today’s world, most scams are digital. It is harder to track and police them, and when someone finally gets caught, the money is long gone. So the safest thing you can do is to not get caught in it to begin with. If you get contacted by someone who is claiming to be an advisor, don’t take them at their word. Look them up, google their name. Also go to FINRA’s Brokercheck, FINRA is our licensing and regulatory watchdog. The link is https://brokercheck.finra.org/. If they have letters after their name, like CFP, go to the CFP Board website (Or whatever Board issues the letters) and look them up. You should be able to find information on anyone who is operating within the law and regulations we have set on us as advisors. In fact, I look myself up regularly to make sure everything is reported correctly.
If someone asks you for money to invest, after looking them up, make sure you have spoken with them. NOT via email or text message. Make sure you have actually heard their voice. Better to have seen them as well, either via webcam or in person. Anyone is vulnerable to getting scammed. All it takes is one thing that sounds good or one click on an email that looks like something you are interested in. Stay vigilant with your money.
Be kind to each other.
Brian