Investors are sometimes targets of investment scams—after all, scammers go where the money is. They are skilled at making fraudulent investments look attractive. As an investor, you need to know how to avoid the risks of fraud and how to recognize the warning signs for investment scams. This section describes what to look for. The module on Fraud Protection gives more information about how to protect yourself from a range of financial scams.
In this section, you will explore:
- how vulnerable you may be to the risk for investment scams
- guidelines on spotting investment scams and tips to avoid them
- what to do if you suspect an investment is a scam.
You'll review a case study of an investment scam and look at a list of tips to avoid scams. You'll hear an expert talk about how to keep your investments safe, and examine some sample promotions for signs of a fraud. By the time you finish this section, you'll be more aware of the signs of an investment scam and know how to protect yourself.