Be Alert For Telltale Signs of On-Line Investment Fraud
Be wary of promises of quick profits, offers to share "inside" information and pressure to invest before you have an opportunity to investigate.
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, call the SEC's Office of Investor Education and Assistance at (202) 942-7040 or call your state securities regulator.
Remember, if it sounds too good to be true, it probably is! |
