Before investing in any proposed scheme, here is some time-tested advice:  If it sounds too good to be true, it is!

BEWARE of your inclination to trust.  Con artists will not hesitate to exploit your good nature.  Remember, a stranger who calls to ask for your money should be regarded with suspicion. 

BEWARE of any investment professional, or con artist, who presses you to make an immediate decision.  Insist on time to research the opportunity, Ask for written information about the opportunity, and make sure you understand all the risks. 

BEWARE of any financial professional who suggest you put your money into something you don’t understand.

BEWARE of the smooth talker.  Successful con artists can make even the flimsiest deal seem financially sound.

BEWARE of salespeople who prey on your fears.

Finally, never let embarrassment keep you from reporting investment fraud. Although money lost to investment fraud is seldom recovered, it is critical that authorities learn about the scams confronting Colorado citizens.

Source:  Division of Securities
 
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“Top Investor Traps”, By Fred Joseph, Colorado Securities Commissioner