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.

Be wary of promises of quick profits, offers to share “inside” information, and pressure to invest before you have an opportunity to investigate.

Don’t be a “courtesy victim”—be polite, but firm when you say “No”

You may be offered a deal on annuities and other investments by being invited to attend a seminar, lunch or dinner, but be wary and investigate offers thoroughly

Be in control of your money, take time making decisions and have others you trust review any changes

Never judge a person’s integrity by how they “sound”

Monitor your investments and ask tough questions; be suspicious of anyone promising you inflated returns on an investment

Look for trouble retrieving your principal or cashing out profits; know penalties up front

Beware of “reload” scams—designed to take a “second bite” out of previous victims; con artists make an offer or promise to make good on the original lost funds or even generate new returns beyond those originally promised

Challenge your Investor-Awareness Skills

Play the Scam Game

Get the Facts About Online Investing

Tips for Online Investors

The following tips were developed by the North American Securities Administrators Association, Inc. to educate investors and to help them think carefully about online investing.

Before beginning an online investment program, be sure to:

• Understand that most likely you are not linked directly to the market through your home computer, and that the click of your mouse does not instantly execute trades or cancel orders.
• Determine if the stock quotes and account updates you receive are real-time or delayed.
• Check the on-line broker’s ability to get the best price for investors. Most brokerage firms provide this information on their website.
• Receive information from the firm to substantiate any advertised claims concerning the ease and speed of online trading.
• Obtain information about entering and canceling orders (market, limit, and stop loss), and the details and risks of margin accounts (borrowing to buy stocks).
• Get information from the firm about significant website outages, delays, and other interruptions that may affect your ability to execute trades. Make sure that the firm has an alternative way to execute trades.
• Review the firm’s privacy and security policies. Determine if your name will be used for mailing lists or other promotional activities by the firm or any other party.
• Receive clear information about sales commissions, transaction fees, and conditions that apply to any advertised discount on commissions.
• Know how to contact a customer service representative if problems occur. Request prompt attention and fair consideration. Be sure to keep good records to substantiate any problems that may occur.
• Contact your local securities division to verify the registration status and disciplinary history (if any) of the online brokerage firm, or to file a complaint, if appropriate.

Did You Know?

Stocks” “bonds” and “notes” are common types of securities. Investments are sometimes referred to as products or vehicles.  All securities issued in Colorado must be registered with the Colorado Division of Securities. 

NASAA Tips - How to Spot a Con Artist

Investing in securities is risky enough without worrying about whether your salesperson is going to fleece you. To be an informed investor, you must know what danger signs to look for. Some are subtle, and some are easier to spot.

Senior Fraud Alert - Colorado Department of Law Office of the Attorney General

How Older Americans Can Avoid Investment Fraud And Abuse

Older Americans are the No. 1 targets of investment con artists. Additionally, stockbrokers and financial planners who engage in abusive practices often seek out the elderly. The files of state securities agencies are filled with tragic examples of senior citizens that have been cheated out of savings, windfall insurance payments and even the equity in their homes. Fortunately, such victimization can be avoided by following 10 self-defense tips developed for older Americans by the North American Securities Administrators Association (NASAA) which in the U.S. is the national voice of the 50 state securities agencies responsible for investor protection at the grassroots level.

When Your Broker Calls, Take Notes!

 Five Keys to Investing Success

 The Basics for Investing with Stocks

 A Primer for Investing in Bonds

 Getting Help With Your Investments

 Mutual Funds: Maybe all You’ll Ever Need

 Where to Invest Your College Money

 Maximize Your Retirement Investments