By CRAIG HOWARD
Spokane Valley News Herald
Deputy Travis Pendell of the Spokane County Sheriff's Office arrived at last month's presentation on investment fraud with a simple message – be smart with your money and be smarter with those who try to invest it.
Caution and research can make all the difference between holding on to your savings and being the victim of a scam, Pendell warned.
“Don't be fooled,” he said. “These people will talk you through hoops with promises of big returns and no risk.”
The Aug. 25 meeting sponsored by the University Sheriff's Community Oriented Policing Effort at the Spokane Valley Police Precinct was part of an ongoing educational series on fraud sponsored by local law enforcement. The hour-long discussion included a PowerPoint presentation that provided examples of Washington residents trying to recover from various types of investment deceit – as well as steps that citizens can take to avoid similar losses.
“If it sounds too good to be true, it probably is,” said Scott Jarvis of the Washington Department of Financial Institutions, the state agency responsible for licensing investment companies.
The array of hoaxes features bogus speculation on real estate, oil and gas, rare coins and foreign banks, to name a few. Pendell said the red flags of fraud typically involve selling tactics that begin with urgency, or the importance of acting fast. Playing on greed, or the promise of significant profits is another warning sign.
“They'll tell you if you don't invest now, you'll lose the opportunity of a lifetime,” Pendell said.
Providing personal information like bank account numbers is the first and most damaging mistake that you can make, Pendell emphasized.
“Be careful, do your homework and don't give out any personal information,” he said. “Ask questions and research the investment through independent resources.”
The list of questions starts with finding out if a company is registered with the Financial Industry Regulatory Authority, the Securities and Exchange Commission or a state securities regulator.
A broker or firm can be verified by going to the FINRA BrokerCheck website at http://www.finra.org/brokercheck or by calling 1-800-289-9999. The SEC Investment Adviser Public Disclosure Database at http://www.adviserinfo.sec.gov includes background information on investment advisers while the State Insurance Commission website – http://www.naic.org -- provides information on the legitimacy of insurance brokers.
Other helpful resources include the Washington DFI website at http://www.dfi.wa.gov and the American Association of Retired Persons at http://www.aarp.org.
In 2006, the Washington branch of AARP joined with the state Attorney General's office to organize a program called Fraud Fighters that works to protect residents from investment fraud and other consumer scams. The project includes a call center staffed by trained volunteers as well as involvement from groups like the Better Business Bureau and the Washington Crime Prevention Association. The Fraud Fighters helpline can be reached, toll-free, at 1-800-646-2283.
A company called SaveAndInvest.org advises that people rehearse a strategy for avoiding sales pitches that could result in scams – the practice centers around simply saying no to high pressure calls before they escalate. The organization also recommends taking your name off telemarketing and junk mail lists, an approach that can reduce the inconvenience but not necessarily cut out all scams. The National Do Not Call list can be reached, toll-free at 1-888-382-1222 or at http://www.donotcall.gov. To avoid credit card and insurance offers, call, toll free, 1-888-567-8688 or visit http://www.optoutprescreen.com.
Deputy Greg Snyder of the Spokane Police Department said the public can begin by practicing care when answering the phone or opening e-mails.
“If you're contacted by someone you don't know, that's a cause for concern,” he said.
Snyder said the average citizen can make a difference in alerting others to investment fraud.
“We need to educate ourselves,” Snyder said. “We also need your help to warn others.”
Pendell encouraged those who encounter possible scams to contact him at the Spokane County Sheriff's Office at 477-6044 or Deputy Snyder at 477-2592.
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