Ohio Investors: Protect Yourselves from Online Investment Fraud
The rising popularity of online investing means Ohio investors need to be extra vigilant about protecting themselves from investment fraud. The aspects of the Internet that make it such a useful tool for obtaining information and networking also enable fraudsters and con artists to circulate false information quickly and to trap unsuspecting investors in a scam more easily than ever before.
To avoid falling victim to an online investment scam, consider these tips:
- Be wary of any unsolicited offers. Con artists will often send e-mails or post “tips” on social networking websites. If an unsolicited offer intrigues you, make sure to thoroughly investigate it with the Ohio Division of Securities or another state regulatory agency. Use tools like FINRA’s BrokerCheck, if applicable. And, NEVER give out your bank information or send money to someone who has contacted you with an unsolicited offer unless you have absolutely verified that the offer and the contact person is legit.
- Be wary of “advice” and “tips” posted to online forums. While many online forums, such as Reddit and Yahoo Answers, offer information and provide answers to user questions quickly and conveniently, the advice and answers posted to the forums may not be accurate and could even be fraudulent. Make sure you double-check any investment advice or tips on a “hot” securities product before you invest.
- Watch out for “pump and dump” scams tied to headlines. With its unparalleled ability to reach vast numbers of people instantaneously, the Internet is an ideal platform for con artists to manipulate prices to their advantage. “Pump and dump” scams involving oil, gas, gold and “green” technology, as well as scams related to natural disasters, are common. Make sure to thoroughly investigate any sales person or securities product with the Ohio Division of Securities. Be wary of any unregistered broker, advisor, or product.
Additionally, if you wish to invest with an online brokerage firm, the Ohio Division of Securities recommends that you protect yourself by asking the following questions:
- What’s the broker’s ability to obtain the best price for their investors?
- Will there be a delay in the information you receive or with your account updates?
- How do you enter and cancel orders? Are there per-day limits? What are the transaction fees associated with your orders?
- What happens if the website goes down or there is a temporary service interruption? Does the brokerage have a back-up system?
- How do you contact a person at the brokerage if you have questions, comments, or concerns? How often are they available? Will you be able to get through immediately?
And, as always, make sure you conduct a background check on the online brokerage firm before you invest. You can verify the brokerage’s discipline history and registration status online at www.com.ohio.gov/secu/.
About our law firm:
The Ohio-based law firm of David P. Meyer & Associates represents individuals in Ohio and throughout the country who have been harmed by investment fraud. All our cases are handled on a contingency fee and we never request a retainer of any kind. Contact us toll-free at 1.866.429.2360 for more information or complete the online form on the top of this page and we will respond promptly.
Category: General
Labels: Ohio investment fraud
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