Beware investment fraud in faith-based communities

The SEC’s Office of Investor Education and Advocacy along with the Retail Strategy Task Force recently issued an alert because faith-based investment fraud is on the rise.

The notice is designed to help investors protect themselves and others they know from fraud targeting members of a shared faith. Often, fraudsters understand that a good way to strike up a conversation is to pretend to have something in common with the target. Bad actors realize that a good way to gain someone’s trust is to appear to have shared beliefs and values, and more crooks are finding a great way to do this is to target faith-based communities.

The crook can target broad-based communities or smaller groups (e.g. people from the same mosque, church or synagogue). Another angle fraudsters employ is enlisting the leaders of these groups to help spread the word about the scheme to lend legitimacy to the “opportunity.” The truth is these leaders may not realize that the investment they are peddling is actually a fraud (until later), which means they may be victims as well.

Another thing that makes these schemes more tragic is that victims find it hard to believe that someone who shares their beliefs and values would ever try to cheat them out of money. Here are a few tips to help avoid becoming a victim of this type of scam.

Do a background check: Even if you think you know the person making the investment offer, be sure the person is a registered investment professional. You can do this using the free search tool at: https://bit.ly/375925P

If they aren’t licensed, pass on the opportunity.

Understand what they’re selling: If you aren’t sure about the investment, get more information. Ask that the investment offer be put in writing. Avoid dealing with anyone who refuses to put things in writing.

If the investment is “too good to be true,” avoid it. If you are being told about spectacular profits or “guaranteed” returns, more than likely these are fraudulent endeavors. Promises of quick and high returns that carry no risk are warning signs that the deal is a fraud.

Finally, don’t be rushed: If you are told that you must hurry to make a decision or the deal will be gone, be skeptical. Reputable investment professionals will not pressure you like that.

If you suspect what you’re being sold is a possible fraud, just walk away and report it: https://www.sec.gov

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CHECK EXPIRATION DATES: A Post Falls reader emailed me, suggesting I remind readers to always check the use-by dates on vegetables and perishables. He was prompted to contact me due to an increasing number of products he’s encountered recently that were already at their use-by date or even a day or two past and still sitting on the shelves for sale. At one store it was a large bag of broccoli; at another store it was ground meat and yogurt.

I’m not an expert on exactly what those use-by dates mean but I assume there is merit to them or the manufacturer would not have applied one. Our reader reported that he notified personnel at both locations of the dates and was met with lukewarm responses, so it would appear we are all on our own to ensure we’re buying the freshest products.

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PROCESSING FAKE REFUNDS: I’ve received several calls a day from 855-789-0329, and so have readers who have alerted me. The caller, a female, left a voicemail stating that the company was going out of business and that my computer was no longer protected and to call this number back to process my refund. The company name is never mentioned in the message.

If this had been a legitimate call, the caller would have identified the company making the call. One reader did call the number back and reported that a male with a thick accent answered the phone, identifying that he worked for the billing department but again did not identify the company. The reader told the caller to stop calling his number. The reply was a hang up from the scammer.

Bottom line: Ignore these calls. They’re just looking for your personal information so they can steal from you.

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FTC LETTERS FROM SCAMMERS: Word seems to have gotten around that U.S. government entities don’t make threatening phone calls to individuals, so scammers are adjusting their tactics to include sending letters to trick people into thinking these notices are coming from actual governmental agencies.

Earlier this month, the FTC issued a warning about scammers sending official-looking letters on letterhead that appear to come directly from the source. However, the FTC says these letters are not real but they are scaring people because they threaten them.

One such letter informed a Pennsylvania man that his online and financial activities put him under suspicion of money laundering and terrorism. As a result, all of his activities would be under review. The FTC acknowledged that this is likely just the first part of the scam and the rest would involve an urgent phone call telling the recipient to send money right away to avoid prosecution.

Here’s how to spot these imposters: The FTC will never send a letter that threatens you and they certainly will not demand that you pay by gift card, wire or bitcoin. If you want to find out more about imposter scams go to: www.ftc.gov/imposters

If you get one of these letters, report it to the FTC at 1-877-382-4357.

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Remember: I’m on your side.

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If you have encountered a consumer issue that you have questions about or think our readers should know about, please send me an email at [email protected] or call me at 208-274-4458. As The CDA Press Consumer Gal, I’m here to help. I’m a full-time copywriter working with businesses on marketing strategy, a columnist and a consumer advocate living in Coeur d’Alene.