Are You A Victim of Financial Fraud?

Sadly, most of us know someone who has been a victim of a crime, or we may have been ourselves a target. If you are the victim of a crime, you are not alone, and there are ways you can get assistance.

If you are a victim of investment fraud, you may be coping with the aftermath of a compromised identity, damaged credit, and financial loss, as well as a painful range of emotions including anger, fear and frustration. The toll of financial fraud may extend well beyond lost money.

Reason to suspect a scam broker is in action:

• The broker froze your account
• The broker blocked your account
• You cannot login back into your account
• Money has been taken out from the account
• The broker doesn’t take your calls
• The broker shut down his website
• You noticed the broker took money out from your bank account with out your permission
• The broker is offering you to fund more money into the account after you lost a large sum
• The broker offers to share insider secrets
• The broker promises a big return with little money

Recovering from fraud can be a long process, since it’s about more than lost money. It’s also about protecting your financial future and finding ways to recover emotionally from the crime. To get you started, here are some steps that can help you reclaim power from the fraudsters and move forward.

1. Create a Fraud File

Collect all of the documentation you have about the fraud in one file and keep it in a secure location. At a minimum, the file should include the following:

• The alleged perpetrator’s name, contact information and any regulatory registration numbers.
• A timeline of events, which could span many years. It’s important to write down the timing and any details so that can you can remember exactly what happened. This information will be helpful if you contact law enforcement and regulators about the fraud.
• Any evidence of the fraud or deception, such as brokerage statements, email correspondence or logs of phone conversations.
• A police report, if any.

2. Know Your Rights

You have victim rights under law. Victim rights include being “treated with fairness and respect for your dignity and privacy,” and to be “reasonably protected from the accused offender.” You can find the full list of victim rights, as well as other laws that affect your rights, on your country’s Department of Justice’s website.

To find out what victim rights you have under your state’s law, contact your state’s attorney general office.

3. Report to Regulators

Reporting the fraud to the national and state regulatory organizations that oversee investment products and professionals may help you and could help others avoid a similar fraud. If you aren’t quite sure you’ve got the right one, don’t worry, they regularly route tips and cases of suspected fraud to the right group.

4. Report to Law Enforcement 

You shouldn’t just report the crime to regulators. You’ll also want to reach out to law enforcement to help ensure that the responsible parties are investigated, which may help prevent damage to others. You can contact any local law enforcement office to file a police report. You can also contact your local district prosecutors office and your state attorney general’s consumer protection unit or prosecution unit to report the fraud.

5. Consider Civil Remedies

Depending on your case, a civil suit may be your best bet for recovering lost assets. Civil attorneys with experience working on financial fraud cases can counsel you on which remedies are available. You should know, however, that civil lawsuits can take time and cost money. And even if you win, it can still be difficult to collect on a judgment, especially if money or other assets have disappeared.

Arbitration and mediation are two alternatives to going to court. Depending on whether your account opening agreement contains a pre-dispute arbitration clause (and virtually all do), you might be required to arbitrate any claims against the firm or a broker. Arbitration is a formal alternative to litigation, and can be faster, cheaper and less complex. With arbitration, two or more parties choose a panel of one to three neutral third-parties, called arbitrators, to resolve their dispute. The panel’s decision, called an “award,” is final and binding.

6. Follow Up

After 30 days or so, review the steps you’ve taken and follow up with any regulators or law enforcement agencies you’ve contacted. Don’t forget that recovering from financial fraud can be a long, hard process. Not only are you dealing with the lost money or assets, but you’re also contending with the emotional costs of fraud. It’s not uncommon for people to blame themselves for the fraud or feel embarrassed by it.

If you believe you are the victim of financial fraud related to an account with us, please email our security team immediately for advice and assistance: [email protected]