fraud -- it's probably too good to be true
Transcript, 2 minutes 25 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, last time we met, we talked about investment fraud
and particularly about the fact that anyone can be a victim of
Craig: That’s right. Often investment fraud victims
are knowledgeable about financial issues and college educated,
yet they still fall victim to investment fraud schemes.
Susan: So – I’m curious about the types of complaints
that come into your office. What other types of investment
fraud should I watch out for?
Craig: We see a lot of Investment fraud and scams that occur
through telephone and e-mail. These scams can be very clever.
Susan: Are there specific tactics we might expect from these
Craig: It pays to be careful when anyone approaches you with
an investment opportunity through telephone or e-mail. In
particular, watch for high pressure sales tactics and false promises.
Susan: I’ve had callers offer me a safe or guaranteed
investment that has a 12 percent return. I just hang up
Craig: That’s a good practice Susan. They may be
selling promissory notes, an investment product that’s
often fraudulent. It’s a red flag when a product
paying a high return is claimed to be guaranteed or insured. The
higher the return, the higher the risk.
Susan: What do you suggest to help me avoid falling for these
Craig: Skepticism can be your best defense. Don’t
decide on the spot. Take the time to do your research before
you make any decision. Discuss the investment with a trusted
Susan: Thanks, Craig. This is very helpful. I guess
what you’re really saying is, if it sounds too good to
be true, it probably is.
Craig: Exactly. And always make sure the investment product,
sales person, or adviser is registered with the Iowa Insurance
Division. You can check toll free at 877-955-1212 or at
Susan: Thanks for taking the time to answer my questions,
Craig. I’ll definitely check out investsmartiowa.gov
and, as always, visit extension.iastate.edu and look for ‘Invest