How To Avoid Investment Scams

	Smart Move
	Don’t be pressured or rushed into buying an investment before you have a chance to think about—and investigate—the “opportunity.”

Have you ever heard something that sounded too good to be true? In many cases where investments are concerned, it probably is. The Securities and Exchange Commission (SEC) offers these tips for avoiding investment scams:

• Investigate investments thoroughly and check the truth of every statement you are told about it.



• Don’t fall for investments that promise spectacular profits or “guaranteed” returns. Also be extremely leery of any investment that is said to have no risks; very few investments are risk free. The greater the potential return from an investment, the greater your risk of losing money. Promises of quick and high profits, with little or no risk, are classic warning signs of fraud.



• Be skeptical of any investment opportunity that is not in writing. Also be suspicious if you are told to keep the investment opportunity confidential.



• Don’t be pressured or rushed into buying an investment before you have a chance to think about—and investigate—the “opportunity.”



• If you receive an unsolicited e-mail from someone you don’t know, containing a “can’t miss” investment, your best move is to pass up the “opportunity” and forward the spam to the SEC at enforcement@sec.gov.