Regulator offers some simple advice to fight fraud
March 28, 2016 by Matthew Patane
Iowans hoping to avoid being the victim of an investment scam can do one thing: ask questions.
“Just know that if you’re being pitched something you don’t understand, it’s OK to ask questions, it’s OK to ask for a second opinion,” Iowa Insurance Commissioner Nick Gerhart said.
Gerhart’s agency, the Iowa Insurance Division, will host an “Iowa Fraud Fighters” forum in West Des Moines on Tuesday. It’s the 16th time the division has hosted the forum around Iowa, but the first time it’s come to the Des Moines area.
“Our goal is to let people know it’s happening, the types of scams that are out there, how they can avoid being a victim and then who to call if they are” a victim, Gerhart said.
Gerhart pointed to a recent story by the Register’s Reader’s Watchdog of a Grinnell woman who lost her life savings due to a phone scam as an example of how some are being scammed.
While his office doesn’t handle phone scams, Gerhart said scammers can use phone calls to try and sell phony investments into gold, oil or other false promises.
Here are some quick tips Gerhart had for Iowans looking to avoid fraud:
- Just hang up: Iowans don’t have to be “Iowa Nice” all the time. If you get a call from someone you think is a scammer, hang up the phone. You should also be wary of unsolicited offers.
- Don’t invest if you don’t get it: “If you don’t understand it, don’t put money into it. If someone is pitching you an idea and you don’t get it, ask questions,” Gerhart said.
- Check their credentials: Make sure someone pitching you an investment or a financial adviser is up-to-snuff. The Insurance Division or the Securities and Exchange Commission should have information or licenses for reputable agents.
Tuesday’s forum is scheduled from 5:30 to 8 p.m. at the Sheraton West Des Moines, 1800 50th St., West Des Moines. Those interested in attending have to RSVP by Friday and can do so by visiting www.IowaFraudFighters.gov or calling 866-559-7114.
Those unable to attend can visit the website for similar information.
How to look up a financial adviser license
Iowa Insurance Division suggests Iowans check to make sure brokers, securities agents, investment advisers and insurance agents are all properly registered and licensed.
They can do so by asking for a Central Registration Depository (CRD) report or an Investment Adviser Public Disclosure (IAPD) report.
Iowans can call the Insurance Division at 877-955-1212 or send an email to iowasec@iid.iowa.gov to request reports.
