fraud can happen to anyone
Transcript, 3 minutes 5 seconds, for use during week of March
Description: Susan discusses investment fraud with
Craig Goettsch, director of investor education for the Iowa
Announcer: Invest Wisely comes to you from Iowa State University
Extension through a grant from the Investor Protection trust,
providing investor education on the web at: investorprotection.org.
Susan: Craig, thanks so much for sitting down and talking to
Craig: My pleasure. Penny told me you have questions about
Susan: Well, of course, I want to avoid investment fraud. But, I
like to think I’m pretty sharp. Aren’t most
fraud victims people who just don’t know very much about
Craig: It’s my experience that most investment fraud victims
are actually quite knowledgeable about financial issues. The
fraudulent sellers are simply very good at what they do.
Susan: So anyone can be a fraud victim? A family member,
a friend, a neighbor?
Craig: Exactly. You really need to know what to look for,
to educate yourselves continuously and always ask questions.
Susan: What’s an example of investment fraud I should
know about and watch out for?
Craig: Well, one example is what are often called ‘free
Susan: Sometimes I get invitations to free educational seminars. I
haven’t been to one, but they claim they’re not selling
anything. Could those be ‘free meal’ seminars?
Craig: Possibly. Many free seminars are offered by legitimate
organizations dedicated to providing investment education. An
invitation to a ‘free meal’ seminar may appear to
be to a legitimate educational presentation, but you may
find otherwise when you attend. Sometimes the organizers
are pushing a book. Other times, it’s a financial
product, one that may not be right for you.
Susan: How can I tell?
Craig: The claims they make may be exaggerated or misleading. Often,
the risks of the product are not disclosed.
Susan: So, I may not have enough information or the right information
to make an informed decision?
Craig: That’s right. And often, at these seminars,
you’ll find yourself pressured to make a decision that
day, before you’ve had a chance to really do your homework.
Susan: Thanks, Craig. This information is really helpful.
Craig: You’re welcome. If you have more questions,
I’d be glad to talk further.
Susan: I may take you up that. Thanks! And as Penny
would say, we can always visit the ISU Extension website at extension.iastate.edu
and look for ‘Invest Wisely’ for more information.