What Are Financial Advisor Scams? A financial advisor scam refers to fraudulent and illegal practices used by individuals or companies who present themselves as financial advisors. Financial advisor ...

Be wary of advisors promising guaranteed returns or using strategies they can't explain. Red flags include pressure to invest quickly, secrecy demands, unlicensed status, or unsolicited cold calls.

Unsavory financial advisors may cheat their clients through deceptive practices such as Ponzi schemes, churning techniques, and pump-and-dump scams. Advisors who pressure you to make quick investment ...