Being a victim of securities fraud is a very unfortunate experience. When you spend your entire life saving your money and investing that money in order to be able to afford your retirement, it is unfair for someone to take advantage of you and exploit you. Losing the money that you worked so hard for so quickly is something that should not be possible, especially when you believe that you are investing it safely because of the advice of a financial advisor. Unfortunately, there are a lot of greedy brokers out there who will use the information they have and take advantage of their clients in order to get some financial gain for themselves. As an investor, it is important to know how to protect yourself from being a victim of fraudulent behavior of financial advisors. Below are some tips to avoid these scams.
- Make sure to do your research and pick an advisor with a good track record.
Obviously any financial expert could go to the dark side and behave fraudulently at any time, but it is still up to you to look at a broker’s history before hiring them. There are some brokers who already have an alarming background. These financial professionals may have already had cases concerning securities fraud filed against them, been accused of selling bad stocks to clients, or charged clients excessively for their expertise. If you look up financial advisors using Vernon Litigation Group’s FINRA broker check and they have some of these red flags in their history, then you should seriously consider hiring someone else to provide you with these services. The best financial advisors you can hire have years of experience as well as a clean record.
- Make sure to have a securities fraud attorney in your mind in case of a negative situation.
No matter how clean your financial advisor’s history is, there is always a chance that he or she could decide to behave fraudulently. Unfortunately, a lot of financial advisors get wrapped up in making as much money as possible and partake in some sketchy behavior at some point in their careers. Because of the risk involved in investing with stockbrokers, it is important always to make sure that you know of a good investment and financial advisor attorney who can fight for your case.
- You should know a little bit about investing and stocks before you hire a broker.
It is always a good idea to know a little bit about the services that you request before you hire a service provider. Obviously you will not have as much knowledge and/or skill, but if you know a little bit, then you will be more likely to catch someone who is trying to take advantage of you.