On Friday’s JayMac News Show, Ethan Millard and Todd Fooks examined this question.
“In our community, it’s a positive thing to give and receive trust quickly,” said Millard, who works in finance and has a securities license. “That’s part of our unique cultural makeup. And that’s not going away. That’s where our vulnerability is.”
“We’re especially vulnerable to people who prey on our loyalties,” Fooks added. “Essentially, you’re being nice and that’s one way you get caught” by a scammer. “You’re doing it as a favor” for this person who betrays the trust.
How do Utahns guard themselves against fraud?
Millard, who helps people invest every day, has some recommendations to follow:
- Stick to reputable companies in the public market.
- Go through a well-known bank or brokerage.
- Don’t write a check to an individual person.
- Get a second opinion.
- Don’t invest privately unless you have millions to spend.
- Pay a lawyer to do the due diligence.
- Don’t take the risk unless you can afford to take the loss.
“And if the person asking you to invest can’t provide the documentation to your lawyer, run away.”
It’s possible to make a lot of money, he said, but you’ve got to protect yourself, so invest in the due diligence.
“It’s going to be hard writing that check [for an independent, due-diligence expert], but you could save yourself your life savings.”
* The Wall Street Journal named Salt Lake City the “Fraud Capital of America” in 2015. *