Warning Signs of Fraud

Regardless of how tempting a financial offer may seem, there are certain warning signs you should always heed. If you suspect fraud, immediately contact someone you trust and explain why you are suspicious—before you act!

  1. Pressure to act. Never be pressured into making a hasty decision, especially if you’re told you only have a limited time to act. A good investment today will still be a good investment once you have time to evaluate it.

  2. Little or no risk. If a promoter tells you the investment is full-proof and there’s no risk of loss, don’t believe it. Every investment carries some risk

  3. Exclusive or limited offer. Be especially cautious if a salesperson describes the investment as a once-in-a-lifetime opportunity, a chance to get in on the ground floor, or available exclusively for you. If you buy this line, that’s probably all you’ll end up with.

  4. All talk, no documents. Legitimate financial promoters explain costs and risks and provide the paperwork to go with their words. No paperwork? Don’t buy it.

  5. Things you don’t understand. Never hesitate to ask hard questions if you are unclear about an investment. If the answers you get are confusing or evasive, that’s a sure sign should there may be hidden risks that you want to avoid.

If You Suspect Fraud

If you suspect fraud or that you have received inappropriate financial advice, you can contact the Texas State Securities Board to ask questions or file a formal complaint.

The Agency will respond to your inquiry, and, if it determines that a violation has occurred, may initiate administrative proceedings or request that a court action be taken.

If you are seeking restitution of funds, you should also a consult with a private attorney to find out what remedies may be available.