While there are risks involved in investing, many investors enjoy that risk. If they take a chance on a certain investment, and the payout is significant, and the satisfaction can be even greater because the risk paid off.
Nonetheless, there are other risks associated with investing, and some of the most dangerous of these are associated with the conduct of others. When brokers misrepresent information or commit securities fraud, they induce investors into taking chances they should never have taken.
According to recent reports, the Alabama Securities Commission issued an investor awareness advisory. In this advisory, information regarding affinity fraud was provided as a means to help investors understand this type of fraud and how best to avoid it.
Affinity fraud is a type of fraud that occurs most often in places of worship, at country clubs, professional organizations, online forums, tight-knit ethnic or immigrant communities and other places where people gather because of their shared beliefs, interests or goals. These shared beliefs or interests create trust among the members and, when fraudsters join these groups, they build the trust of the members to invest in schemes or phony projects as a means to line their pockets and leave their investors broke.
Falling victim to securities fraud is a challenging situation to be in. It can be confusing and emotional. However, it is very possible to work through these matters and protect one’s legal rights. A legal professional can help one understand their situation, as well as their rights when it comes to taking action after suffering harm due to securities fraud.