These are the three big investing red flags: fraud examiner

David Byrne, founder of BrightLights and a certified fraud examiner, joins "Squawk Box" to discuss the red flags he encourages people to look out for when investing which include lack of oversight, conflict of interests, and excessive fees.

Lack of oversight: Investors should identify and mitigate the risk of fraud. If they make it known that they keep tabs on their accounts, others, such as advisors,are deterred from stealing because they don’t want to get caught.

Conflicts of interests: In order to minimize conflict of interests, hire registered investment advisors who have advanced certification. They will provide advice solely in your interests.

Excessive fees: Understand your fees and identify hidden ones, which can be easily missed for an average investor. Have conversations with advisors to understand the fees you’re paying, because excessive fees, over time, drastically reduce your amount on return.

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