Signs of Financial Advisor Scams

financial advisor looking at charts

Your decision to hire a financial advisor to help with your investment portfolio can pay off in the long run. However, before you move forward, it helps to recognize scams and where problems may arise. You can look for specific signs that indicate a potential scam and stay clear of the specific financial advisor. Here are some things to look out for:

Unsolicited Calls from Financial Advisors

When a financial advisor reaches out to you with an opportunity, it most often is a scam. You know what you want and what you’re looking for, so when someone approaches you (instead of the other way), it’s a good idea to stay clear of this financial advisor.

Unusual Payment Requests

If the financial advisor is asking to send you money or vice versa with promises of increasing your investment, it could be a scam. Most companies or financial advisors won’t request that you pay via wire transfer or prepaid gift cards.

Pressure to Invest

A financial advisor is there to advise. However, they should never pressure you into an offer that you may not be comfortable with. Some financial advisors will recommend an opportunity when it benefits them, even when it’s a risk to you.

Too Good to Be True

When an offer seems too good to be true, it probably is. Your financial advisor should not offer you any get-rich-quick schemes or an investment where they have “inside information.” Stay clear of any investments that you feel in your heart are too good to be true.

If your financial advisor has scammed or tried to scam you in the past, make sure you protect your rights. Our Naples financial advisor litigation lawyers work to help you through the complicated legal process to hold an unethical financial advisor accountable for their dishonest ways. Trust us to stand in your corner.

Call our firm today at (239) 319-4434.