If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

For as bureaucratic as government tends to be, there are some instances of great, important information available to you free.

One such case is from the U.S. Securites and Exchange Commission.

Internet Fraud: How to Avoid Internet Investment Scams

The Internet serves as an excellent tool for investors, allowing them to easily and inexpensively research investment opportunities. But the Internet is also an excellent tool for fraudsters. That's why you should always think twice before you invest your money in any opportunity you learn about through the Internet.

The SEC lists where cases of fraud tend to happen online: Online Investment Newsletters, Bulletin Boards and E-mail Spams.

They also offer some telltale signs of online investment fraud:

• Be wary of promises of quick profits, offers to share "inside" information, and pressure to invest before you have an opportunity to investigate.
• Be careful of promoters who use "aliases." Pseudonyms are common on-line, and some salespeople will to try to hide their true identity. Look for other promotions by the same person.
• Words like "guarantee," "high return," "limited offer," or "as safe as a C.D." may be a red flag. No financial investment is "risk free" and a high rate of return means greater risk.
• Watch out for offshore scams and investment opportunities in other countries. When you send your money abroad, and something goes wrong, it's more difficult to find out what happened and to locate your money.
• If a company is not registered or has not filed a "Form D" with the SEC, visit the website of the North American Securities Administrators Association to find your state securities regulator.

Remember, if it sounds too good to be true, it probably is!

Investment fraud tends to fall into one of a few categories, many of which have been tried over the phone and through the mail — so they're not completely new.

The "Pump And Dump" Scam
The Pyramid
The "Risk-Free" Fraud
Off-shore Frauds

Have any additional tips for avoiding Internet investment scams? Post them below!