Don’t believe everything you are told by the seller. Take the time to do your own research on the investment’s potential.
Don’t assume the solicitor is who he or she claims to be.
Check with federal and state securities regulators to find out if there have been any complaints against the company.
Ask the promoter whether—and how much—he or she has been paid to tout the opportunity.
Ask where the company is incorporated and then call that state to ensure that the company has a current annual report on file.
Request written financial information, such as a prospectus, annual report, offering circular, or financial statements, then compare the written information to what you were told.
Get offers in writing and save a copy for your records.
Check with a trusted financial advisor, your broker, or an attorney about any investments you are considering.
Report scams when they occur
Don’t be embarrassed.
File a complaint with the Securities and Exchange Commission, state securities regulator, or a law enforcement agency.
Report the crime promptly—you’ll have a better chance of getting your money back if you do.