MEMPHIS, TN (WMC) - Baby-boomers with vulnerable savings. Naive millennials with little investment experience. Securities and investment scams have both in their sights.
The Tennessee Department of Commerce & Insurance stands in the gap between them.
"Unfortunately, investment fraud cases that drain the savings of hardworking investors are not uncommon," said the department's Assistant Commissioner for Securities Frank Borger-Gilligan. "Becoming an informed and skeptical investor is the best tool to prevent this type of fraud."
The department's securities division offered these tips to prevent investment and securities fraud:
- Check the licensing registration of the seller and the product with the securities division. In Mississippi, check with the Mississippi Department of Banking & Consumer Finance. In Arkansas, check with the Arkansas Securities Department.
- Check with those agencies to see if any enforcement action has been taken against the person offering the investment opportunity.
- Check with someone you know and trust before investing any money.
- Get written information (but be aware that professional looking information could be produced by a con artist).
- Ask lots of questions.
- Know how much risk you are willing to take with your investment; understand how much risk you should be taking given your age, family, circumstances and other factors.
- Take your time; don't allow anyone to rush your decision.
- Never accept a verbal contract.
- Never sign anything before reading it carefully and understanding it.