Spotting a Fraud

Have you been the victim of misconduct or broker fraud?

With the tumble or fall in the value of the investment portfolio, traders generally come across a doubt that whether their broker or brokerage firm has given them proper advice or not.

Most traders lack the knowledge and expertise required to detect broker fraud or misconduct by the brokerage firm. There are various things which one can carry out if he/she doubts broker fraud and also there are multiple resources which help to turn to for legal representation or answers.


Most common types of broker frauds

1) Conversion of Funds
2) Unauthorized Trading
3) Omission or Misrepresentation of Material Facts
4) Lack of Diversification
5) Unsuitable Investment Recommendations
6) Front Running of Transactions
7) Negligent Portfolio Management

Measures to be taken against frauds

1) Carefully investigate the background of the broker
2) Finish and review new trading account forms accurately
3) Review trade confirmations and account statements promptly
4) Understand the real motive of “happiness” letter
5) Check for excessive trading or Churning
6) Address Questionable activity instantly
7) Close account immediately in case you suspect a scam