This document provides information to help investors avoid common types of investment fraud. It describes several classic fraud schemes, including pyramid schemes, Ponzi schemes, pump-and-dump schemes, advance fee fraud, and offshore scams. It explains that while the details may vary, these schemes generally involve false promises of large returns with little or no risk. The document also discusses common persuasion tactics used by fraudsters, such as promises, pressure, and getting investors to let down their guard. It concludes by providing some red flags to watch out for to help identify potential investment scams.

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FOUNDATION
Avoiding Investment Scams
Key Topics: The c u r r e n t f i n a n c i a l crisis has n o t only b a t t e r e d t h e p o r t f o l i o s o f m a n y investors,
it has also placed a s p o t l i g h t on i n v e s t m e n t f r a u d . In t u r b u l e n t e c o n o m i c t i m e s ,
Financial Scams o n g o i n g schemes t e n d t o unravel as w a r y investors begin d e m a n d i n g t h e i r cash.
> I n v e s t m e n t Fraud And t h e o p p o r t u n i t y f o r n e w f r a u d can rise, as f r a u d s t e r s look f o r any hook t o e x p l o i t
>• Fraud Tactics t h o s e w h o hope t o recover t h e i r losses.
> Pyramid Schemes
FINRA is issuing this Alert t o w a r n investors a b o u t classic types o f i n v e s t m e n t f r a u d
> Ponzi Schemes and t o help investors spot and avoid t h e types of persuasion tactics fraudsters use. W e
*• Pump-and-Dump also describe key red flags and provide tools t o help y o u avoid f r a u d . Our Scam M e t e r
(www.finra.org/meters/scam) can help y o u assess w h e t h e r an o p p o r t u n i t y is t o o good
>- Advance Fee Fraud
t o be t r u e , and our Risk M e t e r (www.finra.org/meters/risk) reveals w h e t h e r you share
> Offshore Scams characteristics and behavior t r a i t s t h a t have been s h o w n t o make some investors
vulnerable t o i n v e s t m e n t f r a u d .
WHAT'S INSIDE
Avoiding Investment Scams
I n v e s t m e n t scams can t a k e m a n y f o r m s — a n d f r a u d s t e r s can t u r n on a d i m e w h e n
Types of Investment Scams it comes t o d e v e l o p i n g n e w pitches or c o m e - o n s f o r t h e latest f r a u d . But w h i l e t h e
w r a p p e r or hook m i g h t change, t h e m o s t c o m m o n securities f r a u d s t e n d t o fall i n t o
Psychology of a Scam
t h e f o l l o w i n g general schemes:
Red Flags of Fraud
> Pyramid S c h e m e s — w h e r e f r a u d s t e r s claim t h a t t h e y can t u r n a small i n v e s t m e n t
Who Gets Victimized?
i n t o large profits w i t h i n a s h o r t period o f t i m e — b u t in reality, p a r t i c i p a n t s make
How Can I Protect Myself? m o n e y solely by r e c r u i t i n g n e w p a r t i c i p a n t s i n t o t h e p r o g r a m . The f r a u d s t e r s b e h i n d
these schemes typically go t o great lengths t o m a k e t h e i r p r o g r a m s appear t o be
l e g i t i m a t e m u l t i - l e v e l m a r k e t i n g schemes. Pyramid schemes e v e n t u a l l y fall a p a r t
w h e n it becomes impossible t o recruit n e w p a r t i c i p a n t s , w h i c h can happen quickly.
Stage Participants Notes
Level 1 Each p a r t i c i p a n t recruits 8 n e w investors
Level 2 64
Level 3 512
Level 4 4,096
Level 5 32,768
Level 6 262,144
Level 7 2,097,152
Level 8 16,777,216
Level 9 134,217,728
Level 10 1,073,741,824 M o r e t h a n t r i p l e t h e U.S. p o p u l a t i o n
Level 1 1 8,589,934,592 More than the world's population
1 Avoiding Investment Scams

2. > Ponzi S c h e m e s — i n w h i c l i a central f r a u d s t e r or " h u b " collects m o n e y f r o m n e w investors and uses it t o pay
p u r p o r t e d r e t u r n s t o earlier-stage investors — r a t h e r t h a n i n v e s t i n g or m a n a g i n g t h e m o n e y as p r o m i s e d .
The scam is n a m e d a f t e r Charles Ponzi, a 1920s-era con c r i m i n a l w h o persuaded t h o u s a n d s t o invest in a c o m p l e x
price arbitrage scheme i n v o l v i n g postage s t a m p s . Like p y r a m i d schemes, Ponzi schemes require a steady s t r e a m
o f i n c o m i n g cash t o stay afloat. But unlike p y r a m i d schemes, investors in a Ponzi scheme typically do n o t have t o
recruit n e w investors t o earn a share o f " p r o f i t s . " Ponzi schemes t e n d t o collapse w h e n t h e f r a u d s t e r at t h e h u b can
no longer a t t r a c t n e w investors or w h e n t o o m a n y investors a t t e m p t t o get t h e i r m o n e y o u t — f o r e x a m p l e , d u r i n g
turbulent economic times.
NEW INVESTORS
$$$[>$$$ 1
POMZI HUB OPERATOR
$[>$
EARLIER INVESTORS
The h u b promises 2. Then, t h e h u b Instead o f i n v e s t i n g The f r a u d
high f i n a n c i a l collects m o n e y t h e money, t h e p e r p e t u a t e s itself
returns t o n e w from additional h u b pays so-called as l o n g a s t h e h u b
investors t h a t n e w investors. " r e t u r n s " t o earlier f i n d s n e w investors.
a r e n ' t available investors f r o m
through traditional t h e n e w investors'
investments. money.
>• P u m p - a n d - D u m p — i n w h i c h a f r a u d s t e r deliberately buys shares o f a very l o w - p r i c e d stock o f a s m a l l , t h i n l y t r a d e d
c o m p a n y and t h e n spreads false i n f o r m a t i o n t o d r u m up interest in t h e stock and increase its stock price. Believing
t h e y ' r e g e t t i n g a good deal on a p r o m i s i n g stock, investors create b u y i n g d e m a n d at increasingly higher prices. The
f r a u d s t e r t h e n d u m p s his shares a t t h e high price and vanishes, leaving m a n y people c a u g h t w i t h w o r t h l e s s shares
o f stock. P u m p - a n d - d u m p s t r a d i t i o n a l l y w e r e carried o u t by cold callers o p e r a t i n g o u t o f boiler rooms, or t h r o u g h
fax or o n l i n e n e w s l e t t e r s . N o w , t h e m o s t c o m m o n vehicles are spam emails or t e x t messages.
'»•• ,<f.dvarice Fee F r a u d — w h i c h plays on an investor's hope t h a t he or she w i l l be able t o reverse a previous i n v e s t m e n t
m i s t a k e i n v o l v i n g t h e purchase o f a l o w - p r i c e d stock. The scam generally begins w i t h an offer t o pay y o u an
e n t i c i n g l y high price f o r w o r t h l e s s stock in y o u r p o r t f o l i o . To take t h e deal, y o u m u s t send a fee in advance t o pay
f o r t h e service. But if y o u do so, y o u never see t h a t m o n e y — o r any o f t h e m o n e y f r o m t h e d e a l — a g a i n .
> O f f s h o r e S c a m s — w h i c h c o m e f r o m a n o t h e r c o u n t r y and t a r g e t U.S. investors. Offshore scams can t a k e a variety
o f f o r m s , i n c l u d i n g t h o s e listed above. M a n y involve "Regulation S," a rule t h a t e x e m p t s U.S. c o m p a n i e s f r o m
registering securities w i t h t h e Securities and Exchange C o m m i s s i o n (SEC) t h a t are sold exclusively outside t h e U.S.
t o f o r e i g n or " o f f s h o r e " investors. Fraudsters can m a n i p u l a t e these types o f o f f e r i n g s by reselling Reg S stock t o U.S.
investors in v i o l a t i o n o f t h e rule. W h a t e v e r f o r m an o f f s h o r e scam takes, it can be d i f f i c u l t f o r U.S. law e n f o r c e m e n t
agencies t o investigate f r a u d or rectify h a r m t o investors w h e n t h e f r a u d s t e r s act f r o m o u t s i d e t h e U.S.
2 Avoiding Investment Scams

3. Psychology of a Scam If t h e s e tactics look f a m i l i a r , it's because l e g i t i m a t e
m a r k e t e r s use t h e m , t o o . However, w h e n w e are
The c o m m o n thread that binds these d i f f e r e n t types
n o t prepared t o resist t h e m , t h e s e tactics can w o r k
o f f r a u d is t h e psychology behind the p i t c h . W e ' v e all
s u b l i m i n a l l y . Little w o n d e r t h a t v i c t i m s o f t e n say t o
heard t h e t i m e l e s s a d m o n i t i o n "If it sounds t o o good t o
regulators a f t e r t h e y have been s c a m m e d , "I d o n ' t
be t r u e , it probably i s " — w h i c h is great advice, b u t t h e
k n o w w h a t I was t h i n k i n g , " or " i t really c a u g h t me o f f
trick is f i g u r i n g o u t w h e n " g o o d " becomes " t o o g o o d . "
g u a r d . " That's w h y an i m p o r t a n t part o f resisting t h e s e
There's no b r i g h t line. I n v e s t m e n t f r a u d s t e r s make t h e i r
c o m m o n persuasion t a c t i c s is t o u n d e r s t a n d t h e m before
living by m a k i n g sure t h e deals t h e y t o u t appear b o t h
encountering t h e m .
good and t r u e .
In a 2 0 0 6 s t u d y f u n d e d by t h e FINRA Investor Education Red Flags of Fraud
F o u n d a t i o n , t h e C o n s u m e r Fraud Research Group
e x a m i n e d h u n d r e d s o f undercover a u d i o t a p e s o f To stay on guard and avoid b e c o m i n g d r a w n i n t o a scam,
f r a u d s t e r s p i t c h i n g i n v e s t m e n t s scam. The tapes revealed look f o r the w a r n i n g signs o f i n v e s t m e n t f r a u d :
t h a t f r a u d s t e r s are masters o f persuasion, t a i l o r i n g
> G u a r a n t e e s ; Be suspect o f anyone w h o g u a r a n t e e s
t h e i r pitches t o m a t c h t h e psychological profiles o f
t h a t an i n v e s t m e n t w i l l p e r f o r m a certain way. All
t h e i r t a r g e t s . They look f o r an Achilles' heel by asking
i n v e s t m e n t s carry s o m e degree o f risk.
seemingly b e n i g n q u e s t i o n s — a b o u t y o u r h e a l t h , f a m i l y ,
political views, hobbies or prior employers. Once t h e y >- U n r e g i s t e r e d p r o d u a s : Many investment scams
know w h i c h b u t t o n s t o p u s h , t h e y ' l l b o m b a r d y o u w i t h involve unlicensed i n d i v i d u a l s selling u n r e g i s t e r e d
a flurry of influence tactics, which can leave even t h e s e c u r i t i e s — r a n g i n g from stocks, bonds, notes, hedge
savviest person in a haze. Some o f t h e m o s t c o m m o n f u n d s , oil or gas deals, or f i c t i t i o u s i n s t r u m e n t s , such
tactics i n c l u d e : as p r i m e bank i n v e s t m e n t s .
>• Overly consistent r e t u r n s : Any i n v e s t m e n t t h a t
> The " P h a f i t o m Riches" T a c t i c - d a n g l i n g t h e prospect
c o n s i s t e n t l y goes up m o n t h after m o n t h — o r t h a t
of wealth, enticingyou w i t h s o m e t h i n g y o u w a n t
provides r e m a r k a b l y steady r e t u r n s regardless o f
b u t c a n ' t have. "These gas w e l l s are g u a r a n t e e d t o
m a r k e t c o n d i t i o n s — s h o u l d raise suspicions, especially
produce $6,800 a month in i n c o m e . "
d u r i n g t u r b u l e n t t i m e s . Even t h e m o s t stable
>' The "Source C r e d i b i l i t y " T a c t i c — t r y i n g t o b u i l d i n v e s t m e n t s can experience hiccups once
c r e d i b i l i t y by c l a i m i n g to be a r e p u t a b l e a u t h o r i t y in a w h i l e .
or expert. "Believe me, as a senior vice p r e s i d e n t
>• Complex strategies-: Avoid anyone w h o credits a
o f XYZ Firm, I w o u l d never sell an i n v e s t m e n t t h a t
h i g h l y c o m p l e x i n v e s t i n g t e c h n i q u e for u n u s u a l
d o e s n ' t produce."
success. L e g i t i m a t e professionals s h o u l d be able
> The "Social C o n s e n s u s " T a c t i c — l e a d i n g y o u t o believe t o e x p l a i n clearly w h a t t h e y are d o i n g . It is critical t h a t
t h a t o t h e r savvy investors have already invested. y o u f u l l y u n d e r s t a n d any i n v e s t m e n t y o u ' r e seriously
"This is h o w g o t his start. I k n o w it's a lot o f c o n s i d e r i n g — i n c l u d i n g w h a t it is, w h a t t h e risks are
money, b u t I'm i n — a n d so is m y m o m and h a l f and how the i n v e s t m e n t makes money.
her c h u r c h — a n d it's worth every dime." > Missing documentation: If someone tries t o sell
> The " R e c i p r o c i t y " T a c t i c - o f f e r i n g t o do a s m a l l you a security w i t h no d o c u m e n t a t i o n — t h a t is, no
favor f o r y o u in r e t u r n f o r a big favor. "I'll give y o u a prospectus in t h e case o f a stock or m u t u a l f u n d , and
break on m y c o m m i s s i o n if y o u buy n o w — h a l f off." no o f f e r i n g circular in t h e case o f a b o n d — h e or she
> The " S c a n : - v " l : i : v - > — c r e a t i n g a false sense o f m a y be selling unregistered securities. The same is
urgency by c l a i m i n g l i m i t e d supply. "There are t r u e o f stocks w i t h o u t stock symbols.
only t w o u n i t s left, so I'd sign t o d a y if I w e r e y o u . "
3 Avoiding Investment Scams

4. > A c c o u n t discrepancies: U n a u t h o r i z e d trades, ^ Failing t o check t h e background o f an i n v e s t m e n t
m i s s i n g f u n d s or o t h e r p r o b l e m s w i t h y o u r account or broker (for e x a m p l e , 1 in 8 v i c t i m s failed t o check
s t a t e m e n t s could be t h e result o f a g e n u i n e w h e t h e r an i n v e s t m e n t professional had a c r i m i n a l
e r r o r — o r t h e y could indicate c h u r n i n g or f r a u d . b a c k g r o u n d , a n d 1 in 7 d i d n o t check t h e i r licensing
Keep an eye o n y o u r account s t a t e m e n t s t o make or r e g i s t r a t i o n ) ; and
sure account activity is consistent w i t h y o u r
0 Inability t o spot persuasion tactics used by
i n s t r u c t i o n s , a n d be sure y o u k n o w w h o holds
fraudsters.
y o u r assets. For instance, is t h e i n v e s t m e n t adviser
also t h e c u s t o d i a n o f y o u r assets? Or is t h e r e a n You can use o u r Risk M e t e r t o assess w h e t h e r y o u
i n d e p e n d e n t t h i r d - p a r t y custodian? it can be easier share any characteristics a n d behavior t r a i t s t h a t have
f o r f r a u d t o occur if an adviser is also t h e c u s t o d i a n been s h o w n t o make some investors v u l n e r a b l e t o
o f t h e assets a n d keeper o f t h e accounts. investment fraud.
> A jsifshy salesperson: No r e p u t a b l e i n v e s t m e n t
professional s h o u l d push y o u t o make an How Can I Protect Myself?
i m m e d i a t e decision a b o u t an i n v e s t m e n t , or t e l l y o u
In a d d i t i o n t o paying a t t e n t i o n t o t h e red flags o f f r a u d
t h a t y o u ' v e g o t t o " a c t n o w . " If s o m e o n e pressures
and l e a r n i n g t o spot and avoid t h e persuasion tactics
you t o decide o n a stock sale or purchase, steer
f r a u d s t e r s use, it is critical t h a t y o u ask q u e s t i o n s a b o u t
clear. Even if no f r a u d is t a k i n g place, t h i s t y p e o f
i n v e s t m e n t s a n d t h e people w h o p i t c h t h e m — a n d t h e n
pressuring is i n a p p r o p r i a t e .
verify t h e answers.
You can also use o u r Scam M e t e r t o help spot red flags
of i n v e s t m e n t f r a u d .
Here's h o w :
>• Check O u t i n v e s t m e n t P r o f e s s i o n a l s - Always
Who Gets Victimized? ask w h e t h e r t h e p r o m o t e r o f an i n v e s t m e n t
A l m o s t anyone w h o invests is a p o t e n t i a l f r a u d t a r g e t , o p p o r t u n i t y is licensed t o sell y o u t h e i n v e s t m e n t —
t h o u g h y o u can reduce y o u r v u l n e r a b i l i t y if you k n o w and c o n f i r m w h i c h regulator issued t h a t license,
w h a t t o guard against. A 2007 survey by t h e FINRA and if and w h e n t h e license has ever been revoked
Foundation examined h o w known investment fraud or suspended. A l e g i t i m a t e securities salesperson
v i c t i m s d i f f e r e d f r o m n o n - v i c t i m s . A m o n g its key m u s t be properly licensed, and his or her f i r m
f i n d i n g s , t h e survey i d e n t i f i e d several i n v e s t m e n t f r a u d m u s t be registered w i t h FINRA, t h e SEC or a
risk factors, i n c l u d i n g : state securities r e g u l a t o r — d e p e n d i n g o n t h e
t y p e o f business t h e f i r m conducts. An insurance
@ O w n i n g high-risk i n v e s t m e n t s , i n c l u d i n g penny agent m u s t be licensed by t h e state insurance
stocks, promissory notes, f u t u r e s , o p t i o n s or private c o m m i s s i o n e r w h e r e h e o r s h e does business.
i n v e s t m e n t s in f o r e i g n currency;
Be sure t o i n d e p e n d e n t l y verify t h e salesperson's or
@ Relying o n friends, f a m i l y , co-workers f o r advice (for
p r o m o t e r ' s answers as f o l l o w s :
e x a m p l e , o n e - t h i r d o f t h e n a t i o n a l sample — b u t
70 percent o f v i c t i m s — m a d e an i n v e s t m e n t based > For a broker or brokerage f i r m , use FINRA
p r i m a r i l y o n advice f r o m relative or f r i e n d ) ; BrokerCheck at www.finra.org/brokercheck
^ Being o p e n t o n e w i n v e s t m e n t i n f o r m a t i o n (for or call t o l l - f r e e : (800) 2 8 9 - 9 9 9 9 . BrokerCheck
e x a m p l e , t h r e e t i m e s as m a n y v i c t i m s w e n t t o a allows y o u t o c o n f i r m n o t only licensing a n d
free i n v e s t m e n t s e m i n a r t h a n t h e n a t i o n a l s a m p l e ) ; r e g i s t r a t i o n , b u t also w h e t h e r an i n d i v i d u a l or
f i r m has a history o f c o m p l a i n t s or regulatory
problems.
continued
4 Avoiding investment Scams

5. How Can I Protect Myself? (continued) You can f i n d o u t w h e t h e r a p r o d u c t is registered
w i t h t h e SEC by using t h e EDGAR database
{www.sec.gov/edgar.shtmi). You can also use
> For an i n v e s t m e n t adviser, use t h e SEC's
our Scam M e t e r t o help y o u d e t e r m i n e w h e t h e r
I n v e s t m e n t Adviser Public Disclosure w e b s i t e
an i n v e s t m e n t y o u are t h i n k i n g a b o u t m i g h t be
at www.adviserinfo.sec.gov or call t o l l - f r e e :
a scam.
(800)SEC-0330.
>• For an insurance agent, check w i t h y o u r state
insurance d e p a r t m e n t . You w i l l f i n d c o n t a c t sf a Problem Occurs
i n f o r m a t i o n t h r o u g h t h e N a t i o n a l Association
If y o u believe y o u have been d e f r a u d e d or t r e a t e d
o f insurance Commissioners (NAIC) at www.
u n f a i r l y by a securities professional or f i r m , please
naic.org or call t o l l - f r e e : (866) 470-NAIC.
send us a w r i t t e n c o m p l a i n t . If y o u suspect t h a t
>• For all sellers, be sure t o call y o u r state s o m e o n e y o u k n o w has been t a k e n in by a scam,
securities regulator. You can f i n d t h a t n u m b e r be sure t o give us t h a t t i p . Here's how:
in t h e g o v e r n m e n t section o f y o u r local phone
book or by c o n t a c t i n g t h e N o r t h A m e r i c a n Online:
Securities A d m i n i s t r a t o r s Association at File a Complaint [iox you) —www.finra.org/compiaint
www.nasaa.org or (202) 7 3 7 - 0 9 0 0 for t h e
Send a Tip (for others) —www.finra.org/fileatip
state's n u m b e r .
Check O y t I n v e s t m e n t s — . A s k w h e t h e r t h e M a i i or Fax:
i n v e s t m e n t is registered a n d , if so, w i t h w h i c h FINRA C o m p l a i n t s and Tips
regulator. M o s t investors w i l l w a n t t o buy 9509 Key West Avenue
securities p r o d u c t s t h a t are registered w i t h t h e SEC Rockville, M D 2 0 8 5 0
or w i t h state regulators. W i t h very f e w exceptions, Fax: (866) 3 9 7 - 3 2 9 0
c o m p a n i e s m u s t register t h e i r securities before
t h e y can sell shares t o t h e public.
A Word About Registration:
Smart Thinking; Investors s h o u l d always Keep in m i n d t h a t r e g i s t r a t i o n w i t h t h e SEC
ask w h e t h e r a security is registered w i t h does n o t g u a r a n t e e t h a t an i n v e s t m e n t w i l l be a
t h e S E C — a n d if not, w h y not. Not all good one or i m m u n e t o f r a u d . Likewise, lack o f
securities o f f e r i n g s m u s t be registered w i t h t h e registration does n o t m e a n t h e i n v e s t m e n t lacks
SEC — s u c h as t h o s e issued by m u n i c i p a l , state legitimacy. The critical d i f f e r e n c e is t h e e x t r e m e
and federal g o v e r n m e n t s . level o f risk y o u assume w h e n y o u invest in a
c o m p a n y a b o u t w h i c h little or no i n f o r m a t i o n is
The SEC also provides e x e m p t i o n s for certain publicly available. SEC r e g i s t r a t i o n carries a n u m b e r
i n t r a s t a t e o f f e r i n g s and small public and private o f advantages for investors, i n c l u d i n g disclosure
o f f e r i n g s under a rule k n o w n as Regulation D. o f f i n a n c i a l and o t h e r i n f o r m a t i o n t h a t can help
www.sec.gov/answers/regd.htm investors assess w h e t h e r t o invest in a c o m p a n y ' s
securities.
5 Avoiding investment Scams

6. Who We Are Investor Resources
FINRA
FINRA Investor Information — i n v e s t o r Alerts, t o o l s and m u c h m o r e t o help
FINRA, t h e Financial Industry Regulatory y o u invest s m a r t e r and safer.
Authority, is an i n d e p e n d e n t regulatory • Investor Alerts Smart Bond Investing
o r g a n i z a t i o n en-ipowered by t h e federal S m a r t 401(k) Investing
• Smart Saving f o r College
g o v e r n m e n t t o ensure t h a t America's 9 0 • Fund Analyzer Financial Calculators
m i l l i o n investors are p r o t e c t e d . The mission
Website: www.finra.org/investor
o f t h e FINRA Investor Education Foundation
Phone:(202) 728-6964
is t o provide underserved Americans w i t h
t h e k n o w l e d g e , skills and t o o l s necessary f o r
FINRA Market Data Data on equities, o p t i o n s , m u t u a l f u n d s and a
f i n a n c i a l success t h r o u g h o u t life. FINRA and
w i d e range o f bonds, i n c l u d i n g r e a l - t i m e corporate bond prices and
t h e FINRA Investor Education F o u n d a t i o n
FINRA-Bloomberg Bond Indices.
do n o t sell i n v e s t m e n t products, p r o m o t e
products or f i r m s or offer specific i n v e s t m e n t Website: www.finra.org/marketdata
advice. The FINRA Foundation's Investor
FINRA BrokerCheck — C h e c k t h e background o f a broker or brokerage f i r m .
Protection C a m p a i g n , SaveAndlnvest.org,
is a t a r g e t e d e f f o r t t o reduce t h e incidence Website: www.fnra.org/brokerclieck
o f i n v e s t m e n t f r a u d a m o n g investors by Toll-free: (800) 2 8 9 - 9 9 9 9
t e a c h i n g t h e tactics m o s t c o m m o n l y used
FINRA Investor Complaint C e n t e r — i f you feel you've been t r e a t e d unfairly.
by f r a u d s t e r s and t h e s i m p l e steps every
investor can t a k e t o reduce t h e i r risk. Become FINRA Investor C o m p l a i n t Center
9509 Key W e s t Avenue
a Fraud F i g h t e r — v i s i t SaveAndlnvest.org.
Rockville, M D 2 0 8 5 0 - 3 3 2 9
Website: www.finra.org/complaint
Better Business Bureau
Fax: ( 8 6 6 ) 3 9 7 - 3 2 9 0
For 100 years. Better Business Bureau has
been h e l p i n g c o n s u m e r s f i n d businesses,
brands and charities t h e y can t r u s t . In Additional Resources
2 0 1 1 , consumers t u r n e d t o BBB m o r e t h a n Risk Meter: www.finra.org/meters/risk
100 m i l l i o n t i m e s f o r Business Reviews on
Scam Meter: www.finra.org/meters/scam
m o r e t h a n 4 m i l l i o n c o m p a n i e s and Charity
Reports on 11,000 charities, all available Avoid Identity Theft and Fraud: www.fnra.org/lnvestors/
f o r free at www.bbb.org The Council o f ProtectYourself/AvoidlnvestmentFraud
Better Business Bureaus is t h e u m b r e l l a
To receive t h e latest Investor Alerts and o t h e r i m p o r t a n t investor
o r g a n i z a t i o n f o r 116 local, i n d e p e n d e n t BBBs
i n f o r m a t i o n sign up f o r Investor News at www.finra.org.
across t h e U n i t e d States and Canada, as w e l l
as h o m e t o its n a t i o n a l p r o g r a m s on d i s p u t e
resolution and i n d u s t r y s e l f - r e g u l a t i o n .
Learn more about scams:
www.bbb.org/smartinvesting
Finra
investor Education
FOUNDATION
1735 K street, NW
SaveAndlnvesti
V/ashington, DC 20006-1506
www.finra.org
© 2012 FINRA. All rights reserved.
Avoiding Investment Scams
12_0273.4-08/12