Checking for Fraud and Scams

Are you spooked? For investors spooked by recent financial scams and scandals, the Financial Industry Regulatory Authority (FINRA) offers tools to monitor stockbrokers and identify and avoid fraud.
At Finra.org/BrokerCheck, you can check the professional background of current and former Finra-registered securities firms and brokers, as well as find any regulatory complaints or customer disputes.
You can also see a listing of the broker’s current registrations, licenses or exams passed. The Securities and Exchange Commission offers a similar check for information about investment-adviser firms at Adviserinfo.sec.gov.
Finra.org/Investors/ToolsCalculators offers Risk Meter and Scam Meter tools, which walk you through a series of questions aimed at identifying vulnerable individuals and investments. For instance, the Risk Meter asks you if you have checked with a securities regulator to see whether an investment professional is licensed. Based on the responses, the tool offers suggestions on how to combat fraud.