1. Ask questions
Fraudsters do not expect you to investigate an investment therefore they may not be able to answer some questions which you may ask. Do your won digging and ask questions to which you already have answers to. If they fail to answer your questions or their answers are not satisfactory, stay away. Requesting for more information or for references is not enough.
2. Research before you invest
Unsolicited emails, message board postings, and company news releases should never be used as the sole basis for your investment decisions. Understand a company’s business and its products or services before investing.
3. Be wary of unsolicited offers
Be especially careful if you receive an unsolicited pitch to invest in a company, or see it praised online, but without current financial information about it from independent sources.
4. Protect yourself online
Online and social marketing sites offer a wealth of opportunity for fraudsters.
5. Know the Red flags
Make yourself knowledgeable about different types of fraud and red flags that may signal investment fraud.
