Planning a reliable fraud protection plan against online investment scams should be a primary step when looking for a good investment opportunity online. Studies show that aside from online dating scams, online investment scams are also on the rise. This is the reason that government agencies are constantly reminding their citizens to follow fraud safety tips or come up with their own anti-fraud plan to guard against cyber criminals, when looking for investment opportunities.

Fraud Protection Tips:

  • Take Time to Investigate

Online investment scammers often include a sense of urgency when inviting investors to join them. In fact, many investment scams provide limited time offers that can either give more value to your money or even double your profits.

The reason behind this is to keep from asking questions or from looking closely at the details of their investment offer. However, asking questions should be on the top of your fraud security list and is something that you must do before you jump into an online investment offer. With the right questions, you can readily reveal if an investment opportunity is fraudulent. Securities and Exchange Commission, SEC even offers a guide through https://www.investor.gov/system/files/publications/documents/english/sec-questions-investors-should-ask.pdf, containing a list of questions that you should ask before joining an investment company. Asking if the investment company is registered with the SEC or how it earns dividends are just some of the sample questions that you can ask.

  • Use Reliable Research Tools When Investigating

Conducting regular research on the corporation offering online investment opportunity is not enough. You have to know where to research and the tools available to you to make your research more thorough and reliable. Using SEC’s Electronic Data Gathering, Analysis and Retrieval, EDGAR database as part of your fraud protection plan when searching for information about your prospect investment can eliminate significant fraudulent risk. You can check whether the corporation is honest with about its profitability and that it actually exists and even recognized by the government.

  • Check Information Regarding Your Broker or Investment Adviser

Gathering information regarding your broker or the direct person you are communicating with regarding your investment should be one of the crucial fraud security steps that you should take.

Some investment fraudsters disguise themselves as an official representative of an established corporation or a licensed stock broker, making it easier to lure investment scam victims.

The SEC provides a list of advisers and brokers who have bad records. You can check the name of your investment adviser through this list. Another step is to contact your state securities regulator’s office to get any additional information regarding your adviser.

  • Regularly Check the News

Another important key in creating an efficient fraud protection plan against online investment scam is to keep yourself updated. Learning about new cases of investment scam allows you to update the details of your fraud protection plans. Updated information also gives you the chance to come up with a more informed decision regarding your investment plans.

These are just some of the useful tools and tips that you can employ to protect yourself against online investment cyber criminals. Remember to always be aware and stick to your fraud protection plan so you don’t get lured into any online scams.

 

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