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Protect Yourself
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 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, 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!
http://www.sec.gov/investor/pubs/cyberfraud/signs.htm
We have provided this information as a service to investors. It is neither a legal interpretation nor a statment of SEC policy. If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law.
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