Avoiding Online Scams
by Cynthia Bercowetz
Bloomfield, CT  06002   October 17 2005
 
Be skeptical of investment opportunities you learn about through the Internet.

When you see an offering on the Internet—whether it is on a company’s website, in an online newsletter, on a message board or in a chat room—you should assume it is a scam until you have done your homework and proven otherwise.
Get the facts BEFORE YOU INVEST. You can avoid online investment scams by asking and getting answers to these three simple questions.
Is the investment registered?
Call the American Securities Administrators Association at 202 737-0900.
Is the person licensed and law-abiding?
Find out if the person or firm selling the investment needs to be licensed.
Call your state securities regulator and ask whether the person or firm is licensed to do business in your state and whether they have a record of complaints or fraud. You also can get this information by calling NASD’s public relations hotline at (800)-289-9999 or visiting their website.
Does the investment sound too good to be true?
If it does, it probably is. High-yield investments tend to involve extremely high risks. Never invest in an opportunity that promises, “guaranteed” or “risk-free returns. Watch out for claims of astronomical yields in a short period of time.
Beware of exotic or unusual sounding investments, especially those involving so-called “prime bank” securities.
Daniel Uitti, author of the new book "Keep Your Computer Alive" agrees, "be very wary of unsolicited offers on-line. You want to be careful with SPAM, non-branded websites, and Phishing; which is e-mail that is a SPOOF from someone other then the company that they claim to represent."
For more tips, read author Cynthia Bercowetz’s book, Don’t Get Ripped Off! Get Help! Tell It to George.  It is available on line from Amazon, Infinity Publishing Company, Border’s and Barnes & Noble online. Become an aware consumer after you read the book.
 
Cynthia Bercowetz (consumreye@aol.com)
Author/Consumer Advocate
22 Oak Lane
Bloomfield, CT   06002
Phone : 860-243-2208

 

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