Real Stories of Fraud

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Listen to these stories of investment fraud from the victims themselves—and from con artists who have swindled people out of their money. You’ll see that the cons used classic persuasion tactics in each of these cases to get their victims to fall for their schemes. Understanding these tactics—and what puts you at risk—is the key to spotting and avoiding investment fraud.

Pump-and-Dump Scams are Real
Catherine received a cold call from a public relations firm touting a can’t miss stock, but it was nothing but a classic pump-and-dump. Watch her video to learn how you can avoid becoming a victim.
Military Ties Can Be Used to Commit Financial Fraud
Unfortunately, military ties can be used to commit financial fraud. In some cases, by fellow veterans. Watch this video to learn how you can avoid affinity fraud.
Be Careful Who You Trust
Don’t just trust anyone. Read how Juan Rangel stole $30 million with a Ponzi scheme aimed at the Hispanic community in Los Angeles.
Retirees Are Targets of Scams
Read how Ruth and Len Mitchell lost their entire retirement savings by their accountant.
Fraudsters Exploit Faith and Trust to Steal $580 Million
Understand how personal relationships and the angle of faith clouded the judgment of these church groups and military service members.
Everyone Is Doing It, But You Don't Have To
Bonds between groups of people, like those in the military, are not easily broken. Unfortunately, it's these bonds that fraudsters sometimes exploit to get you to invest in a scam.
Even Professional Investors May Not Spot a Fraud
Even a licensed professional can get scammed. Read how Steve Sampler fell for an oil well opportunity and lost $40,000.
How Social Pressure Cost One Family $30,000
When your friends recommend something to you, you tend to take their word for it. But when it comes to investment ideas, you shouldn't just rely on tips.
Not Asking and Checking Cost One Investor $100,000
Always ask questions and check the answers. Robert Kalinowski took advice from his father and he lost $100,000 in a fraudulent investment.
How "Phantom Riches" Cost $82,000
There are phantoms that lurk in every investment scam. Known as "phantom riches," they are the most common tactics fraudsters use to scam investors. Jameson Kauhi was lured by one of these phantoms, and the only thing it led to was an empty bank account.
Faith Alone Should Not Decide Your Financial Security
The bonds of faith are strong, but when dealing with a matter such as your financial security, faith alone should not be a deciding factor.
Don't Just Rely on Someone's Name
Beau Diamond lured investors with his social status and family name. Even smart, affluent professionals were caught in his $37 million Ponzi scheme.
Flipping The Boiler Room to Fight Financial Fraud
John went from fraud victim to fraud fighter. Watch this video to see how the FINRA Foundation, the National Telemarketing Victim Call Center and volunteers, like John, gather information that helps catch the cons.

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FINRA BrokerCheck Featured Tool: BrokerCheck

Look up a brokerage firm or individual broker in BrokerCheck. It’s a free tool to help investors research the backgrounds of investment professionals and firms. It should be the first resource you turn to when choosing whether to start or continue doing business with a particular individual or firm.

Related Links

Spot and Avoid Fraud
Game: Con ‘Em If You Can
Video: How to Spot the 5 Persuasion Tactics Used in Investment Fraud