There are
certain steps you need to take to deal with an unauthorized firm and protect
yourself from fraud. In case you are wondering how to issue a fraud report,
here are the steps you need to check the possibility of unauthorized firms and
prevent yourself from scammers.
#1 Reject Cold Calls
If you have
been cold called about investment opportunities, the chances of a high risk
investment scam is on the cards. Treat the call with extreme caution. In fact,
the safest thing to do is hang up. Callers can even try to create a sense of
connectedness and claim they have sent you emails or brochures. Such
significant signs of investment fraud should be attended with caution. Reduce
unsolicited mailings and cold calls by opting for mailing preference service and
telephone preference service.
#2 Don't Send Any Money
If you are
being scammed, stop sending money to the firms and individuals associated with
you straight away. Sending money, whether in the form of cash or a wire transfer
can leave no trail. The fraudster could decamp with your cash to any corner of
the world.
#3 Check if the Firm is Authorized or Registered
All
financial services firms and individuals must be authorized by the
accreditation bodies. Certain firms may be registered including payment
services providers and e-money institutions, mutual societies like credit
unions, cooperative societies, friendly societies, building societies and more.
Check if the firm offers bona fide contact details and not subtle ones
indicating that it is a fake. Registered firms that do not give much detail
about the business are a red flag. Check for the firm reference number and
contact details.
#4 Google Unauthorized Firms
Check the
list of unauthorized firms to avoid
business with those who are dodgy. Individuals and firms targeting
investors about whom suspicious details have emerged, should be on your list of
those to avoid. If you have been contacted about an investment opportunity,
check the investment and the firm to see if all the details match up.
#5 Check for Cloned Firms
Beware of
scammers pretending to be from a firm authorized by another. This could be a
cloned firm. Scammers often claim to be from overseas firms as firms do not
have full details and complete contact information listed.
#6 Create Additional Checks
Fraudsters
and companies adapting their tactics often disguise their scam using legit
business names. Check if you are dealing with the financial services firm in
question and correct details are in place. Check the directory if you want to
establish that the company is genuine.
#7 See Warnings From Abroad
Whether you
are dealing with an overseas firm or scheme, check how it is monitored and what
systems of checks and balances are in place. Foreign regulators may inform you
regarding any loopholes in international commercial operations.
#8 Report Unauthorized Firms
Make a fraud report if you come across an unauthorized firm. Fill in the reporting
form and create fraud alerts online. Check on certain business areas such as
consumer credit, insurance products, mortgages, payment services, pensions and
share fraud.
#9 Report Scammers
Check and
issue a fraud report if you come across individual scammers as well. Fraudsters
will take advantage of the fact that money will never be recovered, especially
if you wire the same. The only defense you have in place is to report the
scammer. Issue a fraud report that is accurate and comprehensive. Don't succumb
to the fraudster who says your original investment is genuine. If you do not
pull out of the deal, you can even be asked to make good on other people's
losses. Especially if the case involves
partial check payment and advance fee frauds. Paying a hefty capital gains tax
bill before the large profit promised can prove to be extremely detrimental.
Check that the firm will buy back shares or investment money has been lost
on. Don't share your personal bank
details in hopes that the scammers will fill it with money– they are more
likely to go about it the other way, taking out all your cash.
#10 Check For Fake Liquidators
A fraud
report can also alert people to fake liquidators. Firms running scams which
have been wound up can become the subject of a fraud report too. Fraudsters may
ask for upfront payment, advance fee or tax to either release or sell
investment or return money. Break off all contact with those who have been
involved in a scam and refuse to pay them cash.
