Be cautious when strangers offering get-rich-quick schemes contact you with “cold” phone calls, e-mails or unannounced visits to your home.
Question fantastic promises of extraordinary returns on your investments.
Shy away from high-pressure sales techniques requiring hurried money commitments.
Avoid investments in which the seller has little or no written information about the company or its past performance.
Be wary of investments that are sold on the basis of rumors, tips or supposedly inside information.
Ask the seller to give you written information about the investment, including the prospectus (also called an offering circular) and financial statement.
Consult with your registered stockbroker, banker, lawyer, accountant or real estate agent.
Contact government agencies to find out if a company or individual is licensed to do business or has any history of violating the law.
Deal with established businesses with reputations that are known in the community.