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Scam Alert: 12 Types of Fraud to Watch For
Fraud is a word no financial advisor wants to hear.

Advisors may unwittingly abet a fraudulent scheme that victimizes their clients, or they may allow it to occur by not taking more diligent proactive safeguards.

Bernard Madoff's multibillion-dollar Ponzi scheme has been the most egregious example of the perils that can befall unsuspecting clients -- and advisors who should have been more vigilant. But there are plenty of others. Just this month, a New York man posing as a successful hedge fund manager was arrested by prosecutors for securities fraud and charged by the SEC for stealing most of the approximately $840,000 he raised from unwitting investors.

But fraud can also occur in a myriad ways, from email scams to identity theft to manipulation of investment valuations. Page through to see a dozen common frauds -- and ways advisors can help prevent them -- or click here to see a single-page version. -- Charles Paikert


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