Although most investment offers are legitimate, unfortunately not everyone has your best interests in mind. Many times older people are the prime target of investment fraud.

You don’t always know when an investment is legitimate. Rules of thumb are:

1. don’t be pressured or rush your decision, take your time to think about an offer,
2. ask a lot of questions, and demand answers to your questions,
3. use common sense. Remember that a greater return on your investment usually means a greater risk of losing it, and
4. Research the investment company’s track record. Contact the state and federal authorities listed at the end of this article to see if the investment company is properly registered. Use the Better Business Bureau to see if there are any prior complaints against the investment company.

Get rich quick schemes really do work ... for them, but not for you! The person selling the scheme gets rich from taking your money. Don't fall for schemes which seem "too good to be true." Be wary of an investment sales pitch which doesn't explain the questions you want answered.

Earn money at-home schemes are almost never a good investment. They almost always involve an up-front payment for their "sales kit." The work they promise usually doesn’t result in large profits for you, sometimes not even enough to recoup your investment and out-of-pocket expenses.

Once you sign a contract, make a purchase, or invest money, it may be too late to get your money back. Read and understand everything before you commit to anything. Don't rely upon the salesman’s word for what’s in a written contract. Read the contract yourself, and avoid an offer if you aren’t allowed to read the contract in advance.

Make sure all promises are in writing, guarantees are specifically stated, all blank lines are filled in, and all charges are itemized. Read the small print and get a copy of the signed document. Ask a family member or someone you know and trust if you’re not sure.

To find out if an investment company is legitimate,

1. call the federal Security and Exchange Commission at 1.202.942.8090 or the Illinois Secretary of State Securities Department at 1.800.628.7937,
2. contact the Illinois Attorney General's office at 1.800.243.5377,
3. contact the Better Business Bureau at 1.314.645.2666, or
4. if you know you have been a victim of a fraud, contact the Illinois Senior Citizens Consumer Fraud Hotline at 1.800.243.5377.

Keep your best interests in mind. It's your money and you should use it to your family's benefit.

###

Return to Scams, Fraud, & Personal Safety