2008 and 2009 will be remembered for bear markets, a global credit crunch, and some of the largest investment scams ever. But did you know that nearly every financial scam, including Bernard Madoff's $65 billion-dollar Ponzi scheme, could have easily been avoided?
Scams are nothing new—from Charles Ponzi to Robert Vesco to Bernard Madoff—they've been repeated throughout history, and there will certainly be more in the future. But the good news is fraudsters often follow the same basic playbook. Learn the playbook—and know how to ask the right questions—and financial fraud can be easy to detect and simple to avoid.
While Bernard Madoff may be a criminal, the greater crime is that investors continue to be swindled for no reason. In How to Smell a Rat: The Five Signs of Financial Fraud, trusted financial expert Ken Fisher provides you with an insider's view on how to spot potential financial scams before you commit your money.
Using recent and historic examples of fraudsters, how they operated, and how they could have been easily avoided, How to Smell a Rat will show you quick, identifiable features of potential frauds and arms you with questions to ask when assessing money managers. With this knowledge, you can learn to spot red flags, such as:
- Advisers with direct access to investors' funds
- Firms with numbers that seem "too good to be true"
- Managers with fees that are too low—Madoff didn't charge any fees, he just charged for trading!
There should be a premium for integrity. Asking the right questions and performing the due dilligence goes a long way toward finding a firm that can help insulate you from financial fraud.
Ken Fisher's New York Times best seller, How to Smell a Rat, can help better prepare you to identify and avoid financial scams that could instantly destroy the wealth you've worked so hard to build.