- Overstated claims of product effectiveness. Use of hype titles and frequent use of the word "hot" to describe an investment opportunity can indicate a scam.
- Exaggerated claims of potential earnings or profit.
- Claims of "inside" information.
- "Pump and Dump" promotions of cheap stocks promising high returns.
- Promotions for exotic investments such as ostrich farming, gold mining, or wireless cable TV.
When you make any decisions about investments or products, be careful. Check a variety of sources and references before you buy.
If you have a question or complaint about an online ad or promotion, contact your commercial service provider. You also may file a complaint with your local consumer protection office, state Attorney General, or the Federal Trade Commission. Write to: Correspondence Branch, Federal Trade Commission, Washington, DC 20580.
Or, contact the National Advertising Division of the Council of Better Business Bureaus, 845 Third Avenue, New York, NY 10022.
If you have questions about whether an investment sales person is licensed or an offered security is registered, contact the Office of Consumer Affairs, Securities and Exchange Commission, (202) 942-7040.
The National Fraud Information Center maintains a toll-free Consumer Assistance Service, 1-800-876-7060, to provide information about telephone or mail solicitations and online scams. They also tell consumers how and where to report fraud and how to file complaints.
The Federal Trade Commission publishes free brochures that explain fraudulent sales practices and how you can avoid them. For a complete list of publications, write for Best Sellers, Public Reference, Federal Trade Commission, Washington, DC 20580; (202) 326-2222; TDD (202) 326-2502.
(Excerpt provided by Quakwatch.org)
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