Investor enthusiasm for the Internet has created tremendous financial opportunities in recent years – for stock market fraudsters! That’s because they often use the Internet to lure innocent investors into their scams. But you can survive stock market fraud and avoid becoming a victim if you follow these steps before you invest:

1. Be Skeptical: When you see an offer on the Internet, consider it a scam until you can prove it’s legitimate through your own independent research.
2. Consider the Source: Remember that the people touting a stock may be company insiders or paid promoters who stand to profit at your expense.
3. Independently Verify Claims: Don’t rely solely on claims by companies or promoters about new product developments, lucrative contracts, or the company’s financial health.
4. Beware of High Pressure Pitches: Watch out for promoters who pressure you to buy before you have an opportunity to fully research an offer.
5. Research the Company: Always ask for – and carefully read – the company’s prospectus and current financial statements.
6. Confirm Registration: Check the SEC’s database or your state securities regulator to determine if the company files reports or has registered a securities transaction.