These Indicators Should Be Cause for Concern:

• Promises of spectacular profits. Any offer that sounds too good to be true probably is too good to be true.

• High pressure sales tactics.

• A "guaranteed" investment or an investment without risk.

• Insistence on an immediate decision. The caller may even have a courier driving in your area ready to stop by your home and pick up your check within minutes of the call!

• Recommendations based on rumors, tips, inside information or an unannounced breakthrough in the industry.

• Recommendations based on the caller's ability to predict future events.

• A request for your credit card number for any purpose other than to make a purchase. Such requests are typically made for "identification" or "verification" purposes, or merely as an "expression of good faith."

• Unwillingness to provide written information, state securities registration information or verifiable references.

• A suggestion that you invest mostly on the basis of trust.

• Investment opportunities in another country or that are dependent on the participation of an offshore bank.

• Unwillingness to let you discuss the investment with a third person.

• Claims that the investment is not a "security" and therefore not covered by the securities laws. Be very suspicious of such statements, and be sure to check further on the specifics.

Avoiding an Investment Scam:

• If it sounds too good to be true, it usually is. No legitimate promoter will claim to offer a risk free investment. A solicitation that claims there is little or no risk should be viewed with caution.

• Verify that a brokerage firm is registered with the securities commissioner. Firms that trade commodities also are usually required to register with the Commodity Futures Trading Commission and are subject to its regulations.

• Make sure the broker's address and phone number match the company for which he claims to work. Never give money to a collector or messenger who visits your home following up on a phone sale. Never write the broker's name on a check as payee; use the company's name.

• Ask the firm to send a prospectus or other literature about the firm. Don't be swayed, however, by the glossy brochures some con artists produce. Also, ask for a written proposal describing conditions of the contract and a form outlining the risks involved with the investment.

• Ask the phone solicitor to explain the investment to your lawyer or accountant. Whether or not you have a lawyer or accountant, ask anyway, because the salesperson's response might be a tip off to his real intentions. A legitimate broker will have no objections while a con artist will say something like, "Normally I'd be glad to, but there just isn't enough time for that," or "Those people don't give investment advice."

• Arrange for a meeting at the broker's office or your attorney's office. It is never a good idea to do business with a faceless person over the phone. Ask a third party to attend.

Please feel free to give us a call at 1-800-306-6010 or contact us online.