There are over 18 million veterans in the United States, making them prime targets for fraud. Fraudsters often target groups with shared backgrounds and interests, making veterans and their families vulnerable to investment scams. Some scammers may even pretend to be veterans themselves.
Recognizing Fraudulent Investment Schemes
Investment fraud comes in many forms, with scammers using various tactics to deceive potential investors. They might pretend to be your friend, promise huge returns, and pressure you to invest quickly. These are all red flags. To see examples of these scams and learn how to avoid them, check out the Securities and Exchange Commission’s (SEC) public service videos. Remember, if it sounds too good to be true, it probably is.
Staying Informed and Safe
Whether you’re new to investing or experienced, the SEC provides valuable information on avoiding scams and investing wisely. Learn more at “Saving and Investing: A Roadmap to Your Financial Security Through Saving and Investing” and explore free tools and resources at Investor.gov, including a dedicated military page.
Steps to Protect Yourself
- Background Check: Before investing, check the background of your investment professional on the SEC’s Investor.gov website.
- Understand Fees: Be informed about the fees and expenses associated with investing. Ask your financial professional about all charges, when they apply, and why. Compare costs before deciding.
- Diversify Investments: All investments carry some risk. By diversifying, you can limit losses and reduce the volatility of returns without sacrificing potential gains.
- Education and Research: Your best defense against fraud is to stay informed. Educate yourself, do your research, and use common sense to protect your investments.
Don’t fall victim to investment fraud. Stay vigilant and make informed decisions to secure your financial future.