How to avoid Investment Fraud

• Independently Verify Claims.  Never, ever, make an investment based solely on what you read in an online newsletter, bulletin board posting, or blog — especially if the investment involves a small, thinly-traded company that isn't well known. It's easy for a company or its promoters to make grandiose claims about new product developments, lucrative contracts, or the company's financial health. Before you invest, make sure you've independently verified those claims. 
• Be Skeptical of Self-Provided References.  Fraudsters will falsely assure you that an investment is properly registered with the appropriate agency and purport to give you the agency’s telephone number so that you can verify that “fact.”  Sometimes they will give you the name of a real agency — other times they will fabricate one. But even if the agency does exist, the contact information they provide invariably will be false. Instead of speaking with a government official, you’ll reach the fraudsters or their colleagues — who will give the company, the promoter, or the transaction high marks. 
•  Watch Out for High-Pressure Pitches. Beware of promoters who pressure you to buy before you have a chance to think about and fully investigate an investment opportunity.  Don't fall for the line that you'll lose out on a "once-in-a-lifetime" chance to make big money if you don't act quickly.  Remember: if an opportunity sounds too good to be true, it probably is.
• Consider the Source and Be Skeptical. Whenever someone you don't know offers you a hot stock tip, ask yourself:  Why me?  Why is this stranger giving me this tip?  How might he or she benefit if I trade?  Never forget that the person touting the stock may well be an insider of the company or a paid promoter who stands to profit handsomely if you trade.