Financial fraud is on the rise, according to U.S. government financial watchdog the Commodity Futures Trading Commission (CFTC). In response to the increase of financial fraud across the nation, this commission has launched a consumer education campaign and accompanying website with the goal of keeping investors nationally from becoming victims of financial fraud.

The CFTC campaign’s website SmartCheck is an online tool that allows consumers to check a broker’s or another type of financial professional’s registration and disciplinary history. This SmartCheck feature is crucial in helping investors avoid financial fraud, as the majority of financial fraud occurs when consumers work with unregistered financial advisors.

Smartcheck also allows consumers to access and search databases connected to the National Futures Association, the Financial Industry Regulatory Authority (FINRA), and the Securities and Exchange Commission in order to verify if a broker is properly registered with the commission or the NFA.

According to CFTC chairman Timothy G. Massad, the SmartCheck campaign is meant to complement financial enforcement activity, while giving consumers “better tools to detect fraudulent schemes on their own.” Additionally, the SmartCheck website will provide investors with interactive videos with information on how to evaluate an investment opportunity for potential risk or financial fraud.

The Commodity Futures Trading Commission

The CFTC is tasked with regulating trading in futures and commodity options. From 2010 through 2013, the commission investigated various financial fraud schemes that swindled $1 billion from about 30,000 investors. Many of these consumers lost their whole life savings.

The CFTC also took action against Hunter Wise Commodities, which persuaded consumers to invest thousands of dollars in gold, silver, platinum, and other precious metals. Many of the investors did not realize that it was impossible for them to make any profit from this type of investment, especially after paying the company commissions, fees and interest. In May, Hunter Wise was ordered by a Florida federal court to pay over $100 million in restitution to consumers.

Stockbroker Misconduct

There are several types of financial fraud stockbrokers and financial advisors have been accused of when handling consumers’ stocks and investments that may result in severe economic loss for these investors. Activities that fall under stockbroker misconduct include:

• Securities fraud or investment fraud
• Improper investment recommendations
• Misrepresentations of facts
• Omissions of material facts
• Failure of proper due diligence
• Breach of fiduciary duty
• Excessive trading
• Excessive use of leverage and/or margin
• Unauthorized trading
• Theft and/or conversion
• Recommending unregistered securities
• Ponzi schemes
• Stock fraud schemes

If you believe your financial advisor has committed financial fraud and risked your investments, you have the right to pursue the recovery of some of your losses. You as an investor may be eligible to file a stockbroker misconduct lawsuit or join a stockbroker misconduct class action lawsuit.