It is unfortunate to know that someone has become a victim of a scam. The crime does not happen with a specific individual. Anybody and everyone can become a target. If you become a victim of the stock market scam, do not panic, as you are not alone. There is enough assistance waiting for you to recover money from a stock market scam.
The victim of a stock market scam generally faces issues including financial loss, credibility, and compromised identity. There are many painful emotions that an individual goes through being a victim of the stock scam, like frustration, fear, and anger. The effect of a stock market scam may not restrict only to loss of money. FINRA Foundation did a detailed study and concluded that almost 60-65 percent of the scam victims have to fight against the following emotional consequences.
Chances of recovering your entire amount may be less, but it is essential to report the crime at the earliest. The amount lost in the scams may be small, but that must not stop you from informing the government agencies and law enforcement regulators. Once the stock scam comes into the eyes of the government agencies, they put their efforts to safeguard others from becoming the victim of such a scam. They are in a position to restrict the stock scam. Also, to catch hold the criminal and sentence them according to the law of the land.
Your money must have been disposed of by the perpetrators as soon as they receive it from you. Hence chances of recovery become low. Still, the recovery process is crucial as against lost money. The objective of recovery is the protection of future financial assets and keeping your finances in better health. It also plays a vital role in bailing you out of different emotions that you go through after the scam.
There is a checklist that may help you to recover money from a stock scam.
1. Preparation of Stock Market Scam File
You may need to prepare a complete file of the scam. The first step would be to collect all the necessary documents related to the stock scam. Keep the file in a safe location. The file must have contact details of the perpetrators like name, website address, telephone number, and email address. If you have the alleged regulatory registration number of the Fraud Company or fraudster itself, it may be of great help.
Your file must also contain a police complaint, call recording if you possess it, and any relevant documents related to the scam. One more crucial piece of information that your file must have is your credit history from all the companies publishing credit reports.
2. Be Aware of Your Rights
The Federal and in few instances of crime the state law have given some rights to the scam victim. You must be aware of the rights that you have to protect yourself better. If you notice at the Federal level, the US Department of Justice, DOJ has listed the rights of the citizen who gets trapped in a financial scam. You can also have a look at the brochure in the office of the DOJ. The information brochure contains an overview of the victim rights and the help the department would provide.
The state Attorney General provides information about the rights of the victim at the state level. Please visit the website www.naag.org to get more details. The North American Securities Administrators Association releases, “Investor Bill of Rights” which is helpful.
3. Scam Reporting to Regulators
The bureau of state regulatory and the federal agencies at the national level proves to be a great professional help. There are many agencies with whom you can report about the financial scam.
- FINRA: (844) 57- Tip filing
- National Future Association: Complaint filing
- Internet Crime Complaint Center that is in partnership with National White Collar Crime Centre and FBI: ic3.gov U.S. Securities and Exchange Commission
- National Association of Insurance Commissioners: You can file complaints or report fraud to the State Commissioner.
- U. S. Commodity Futures Trading Commission, here you can again file a complaint or a tip
Reporting to the Federal Trade Commission can be a great help. You can contact them from their website ftccomplaintassistant.gov or get in touch with FTCs Complaint assistant by dialing (877) for FTC-HELP. The complaint filing will register the scam in the Consumer Sentinel Network. It helps law enforcement in putting an end to these crimes and also to track the fraudster. This step, however, may not proceed with the investigation of crime for your case.
4. Scam Reporting to Law Enforcement
It is a vital decision to report the scam to law enforcement to start with your recovery journey. The reporting will ensure that a thorough investigation takes place with the parties involved. It helps to protect others from getting into the trap of the scam.
- District Attorney – Immediately get in touch with your District Attorney Office
- Federal Law Enforcement – Get in touch with your local FBI Field office. Also, an online tip submission is possible through tips.fbi.gov
- Local Law Enforcement – For filing a police report, get in touch with any local law enforcement.
- Attorney General – The prosecution unit and the general consumer protection of the State Attorney General can help you in stock scam reporting.
5. Exploring Option
It might not be easy to recover money from a stock market scam. But legitimate ways are available to try for your asset recovery. In most instances, the recovery is possible from your end itself by spending nothing or maybe a little.
6. Regular Follow-Ups
It is necessary to have a follow-up after a month with any law enforcement organizations or agencies. These agencies are committed to providing services to the victim.
Bury Your Worry
In this dynamic world of finance, the possibility of you becoming the victim of the scam may be high. Thus, it is always advisable to have a thorough background check of the company or broker you intend to invest money in. Never get carried away if they promise you heaven or a return on investment that is way beyond the industry standards. Most of the investors fall into the trap of scams because greed takes over them.
Always be prepared for the worst as it helps you to be strong emotionally. Having control of your emotions is crucial for your survival. The money lost is recoverable, but recovery from emotional imbalance is challenging. Give priority to your health and handle your victim position with a calm mind.
Explore all the options that are available with you in recovering your funds. The investment activity in your life is necessary to achieve your financial goals. The scam must not be the roadblock for investing your amount to gain a better rate of return from the stock market.