Avoid investment scams: Do your homework

December 30th, 2007 at 09:22am Deborah Austin

Many investment scams originate with free investment seminars, warns Illinois Secretary of State Jesse White, whose office gets hundreds of complaints each year of investment fraud. ”If you attend a seminar, don’t fall for high pressure sales pitches,” he said “Call my office before investing.”

White’s Securities Department gives out free information about the registration status and disciplinary history of brokers and investment advisors. You can contact the department at 1-800-628-7937 or visit www.avoidthescam.net.

Some tips from White’s office for investors to protect themselves against scam artists:

* Never give your Social Security number, date of birth or credit card number in response to unsolicited e-mail messages or over-the-phone “cold callers.”

*  Don’t make quick and risky investment decisions based on sales pitches that refer to great deals offered for a limited time, or those that offer year-end tax advantages.

* Before investing, call your local securities agency to learn more about the salesperson and the investment product. Be sure to ask if they are registered to do business in Illinois, and if the investment is allowed to be sold. If one or the other is not registered, consider that a warning to inquire further.

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