On Thursday November 13, 2014, Investor Advocacy Clinic student interns Brittany DeDiego and Christopher Pugh presented “How to Spot and Prevent Investment Fraud” to a group of Georgia State University ROTC cadets. The early morning session covered common scams, red flags of fraud and how to be an informed investor.
The student interns explained some common tactics of fraud, including phantom riches, source credibility, social consensus, reciprocity, scarcity, and affinity fraud. They also highlighted other red flags investors should be aware of, like guaranteed returns, complex strategies, unregistered products, overly consistent returns, missing documentation, account discrepancies, and pushy salespeople.
The interns then led the cadets through a Fraud Awareness Quiz prepared by the North American Securities Administrators Association. The cadets answered each question, then the student interns shared and explained the correct answer. The cadets excelled on the quiz and showed off their knowledge of safe investing.
At the end of the presentation, the student interns shared several resources that can help prevent investment fraud such as FINRA’s BrokerCheck and the Security Exchange Commission’s EDGAR website. Finally, the interns led a robust question and answer session where the cadets asked several thoughtful questions about investment fraud.
Clinic interns provided the cadets with additional educational materials to learn more about this important topic, including SaveandInvest.org’s publication Money & Mobility: For Military Personnel and Families.
The Investor Advocacy Clinic thanks Colonel Brooks and the Georgia State University ROTC for the opportunity to meet with these future leaders. We look forward to continued collaboration in the future.