Here’s a list of the top 3 tell-tale signs to watch for to determine if you are being scammed.
- I would put this at the top… “Custom Statements” What do you know! All of a sudden the statements you used to get from your investment house, have been replaced by a customized personal report prepared just for you, by your broker. Call the Head Office compliance department and put your complaints in writing asap.
- Your broker asks you to make out a cheque to him or her personally. Cheques made out to your broker’s name not the firm. Forget the lame excuse, this is a red flag. Take action in writing and call the Head Office compliance department.
- You see strange trades in your account and your broker reassures you it will be taken care of. Allow a day to fix the problem just in case it was a legitimate error. If it isn’t fixed, you know the drill…
More from CNBC:
Also, watch for strange behaviors such as your advisor is never in the office, asks you to call them on their cell phone instead of the office line which is likely recorded, your broker fails to follow your trade instructions, or you suspect they may have an addiction problem (alcohol, drugs, gambling). All of these should make you suspicious.
Frank Abrams is the founder of zenPeak Inc. – insuring peak performance