Tips on avoiding internet scams

I just got this in my email, a list of warning signs, how to avoid getting ripped off by internet scams. Danger Signs to Look Out For

1. Fast money - Making money fast is a goal for many people. If you’ve been on the Internet for a while, you’ve probably seen the “Make Money Fast” emails that have circulated for years.

People still fall for this nonsense, and the lure of fast money — with little or no work — lives on.

2. Guarantees - If someone tells you a particular stock or investment is guaranteed to double or triple in price, run.

No reputable financial advisor or stockbroker will ever guarantee a rate of return, unless it’s an investment such as a term deposit or government bond. Every investment carries some degree of risk, no matter how small.

3. Foreign Investments - Certainly not all foreign investments are scams — far from it. Nonetheless, if a foreign investment goes bad, it can be much more difficult to recover any money, since the investment will be beyond the jurisdiction of your country, and will be difficult for officials to investigate and prosecute. Be extra careful.

4. Buzz Words - A hot company that suddenly springs up, offering to capitalize on a current issue (terrorism, child safety, anthrax) may be legitimate, or it may simply be preying on fears to bilk investors. Use the resources at the end of this newsletter to check it out.

5. High Pressure Tactics - If someone (especially someone you don’t know) pressures you to act now, run!

6. Hot Tips and Rumors - Ignore these. Sometimes scammers issue fraudulent press releases as part of “pump and dump” scams. Rely on real facts and official press releases only.