Customer account forms were marked with the number of the registered rep whom the clients insist they had never spoken to or traded with. At one firm, a review of a thousand customer accounts showed that all of the clients had bought only one or two stocks stocks that only that particular firm was selling to the public. Although the scams of today are similar to the swindles of that earlier time, there are significant differences. The most obvious difference is the marketplace itself. Today, there are far more mid-income investors than ever.
Products are more sophisticated and choices have multiplied.
The message is everywhere. It s hard to pick up a magazine or watch television or listen to the radio without hearing advertisements for mutual funds or other securities products. Ask your state securities agency for help. When you are contacted by a broker or financial advisor, particularly if you do not know this person or have not heard of the firm, you must call your state securities agency in order to learn more about the caller and the firm. The simplest inquiry is to ask if they are registered to do business in your state.