How can I recognize and avoid investment scams?

To recognize and avoid investment frauds, it is important to stay informed and do research. When considering any investment, make sure to research the company and its investments. Any reputable investment opportunities will have information about the company and its investments available online. Be wary of any companies that do not have a good online presence or lack information. It is also important to never invest if the company or representatives are pressuring you to do so. You should also be aware of investment scams, including Ponzi and pyramid schemes. Ponzi schemes are fraudulent investments that cause investors to lose money by using funds from one investor to pay promised returns to another. Pyramid schemes are also fraudulent investments that entice investors to purchase products or services with the promise of a quick return, but the money is never returned to the investor. In Washington, the Securities and Exchange Commission (SEC) regulates the securities industry and is the main source of information on investment frauds. You can visit the SEC’s website at www.sec.gov for more information about investment frauds and potential scams. Individuals should also consult with a registered investment advisor before investing, as they can provide advice and guidance on avoiding investment scams. Finally, it is important to trust your instincts, if something seems too good to be true, it probably is.

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How can I recognize and avoid investment scams?

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