Trying Economic Times Push American Consumers to the Limit

From the crash of the United States housing and credit markets to the controversial billon-dollar bailouts given to the nation’s banks and automakers, the United States economy and Wall Street have been dealt one devastating blow after another. American workers face massive job layoffs and soaring unemployment, consumers grapple with rising inflation, while the nation suffers from what many financial analysts are calling the worst American economic climate since the Great Depression.

In these increasingly trying and uncertain economic times, many Americans have been further victimized by unscrupulous investment brokers and dishonest corporations, who engage in shady billing practices and other unethical behavior. Bad investment advice, stock broker fraud, and consumer scams are a growing problem across the United States, and in many cases, defrauded investors and consumers are unable to repair their tarnished credit scores or recover their losses.

Bad Investment Advice, Stock Broker Fraud

Millions of Americans have seen their college funds, retirement accounts, and other savings dry up as the stock market has plunged to near-record lows. Even experienced investors have fallen victim to unscrupulous financial advisors and securities brokers, who offer bad investment advice or break the law in their illegal and unethical dealings with clients.

One common form of stock broker fraud is the recommendation of unsuitable investments. When a broker sells a client an investment that is too risky given the client’s financial position, age, and a variety of other factors, the broker may be in violation of federal laws and professional standards for the financial industry.

Sadly, the sudden economic downturn has driven many securities brokers to conduct themselves in professionally unethical and illegal ways. Brokers and financial advisors owe a duty to their clients to act fairly and uphold the highest standards of honesty and integrity in their dealings with clients. When a broker puts his or her own financial interests before those of a client, the client can suffer huge financial losses.

Consumer Fraud on the Rise

Many American consumers have been also targeted by dishonest corporations that engage in credit card fraud, dishonest billing practices, and other illegal activities. Mail fraud, Internet marketing schemes, and other forms of consumer fraud claim millions of victims each year. Many consumers are unable to fully recover from the financial damage done.

Unauthorized charges may be made to a consumer’s credit card after the account information is stolen using an electronic “skimming” device to secretly record the account number or other means. Many consumers are unaware their credit card account has been pirated until it is too late. Identify thieves may takeover an unknowing consumer’s account and rack up thousands of dollars in fraudulent, unauthorized charges before the theft is detected.

Protect Yourself Against Investment and Consumer Fraud

Consumers and investors must constantly be on guard to protect their investments, bank accounts, and credit scores from dishonest securities brokers, corporations, and identity thieves. By taking steps to ensure that your financial affairs are being handled properly by your financial advisor and protecting your credit card account from scammers and identity thieves, you can limit your exposure to the devastating and lasting effects of investment and consumer fraud.

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