Be Alert for Telltale Signs of Online Investment Fraud
- Be wary of promises of quick profits, offers to share "inside"
information, and pressure to invest before you have an opportunity
- Be careful of promoters who use "aliases." Pseudonyms are common
on-line, and some salespeople will to try to hide their true
identity. Look for other promotions by the same person.
- Words like "guarantee," "high return," "limited offer," or "as
safe as a C.D." may be a red flag. No financial investment is
"risk free" and a high rate of return means greater risk.
- Watch out for offshore scams and investment opportunities in other
countries. When you send your money abroad, and something goes
wrong, it's more difficult to find out what happened and to locate your money.
- If a company is not registered or has not filed a "Form D" with the
SEC, visit the website of the North American Securities Administrators Association to
find your state securities regulator.
Remember, if it sounds too good to be true, it probably is!