Indiana MoneyWise October 2014 | Page 11

If you chose mostly As, below are some tips to help you avoid being scammed:

1. Always check to make sure your seller and the investment are registered. Search the Indiana Securities database to make sure the person taking your money is licensed to do so and that the investment itself is registered.

2. Investments that promise high returns with little to no risk are often fraudulent.

If you chose mostly Bs, congratulations! You are well on your way to making smart investment decisions.

3. You need to do your own research. Recommendations are only part of the investigation process. Keep in mind that your loved ones could be victims and not yet know it.

4. Just because other investors are making lots of money, doesn’t mean the investment is legitimate. In a Ponzi scheme, many of the initial investors do make large dividends to help draw in more victims.

5. Free incentives are often used by con artists to lure you in. Then they use high pressured sales tactics to get you to invest. Remember, if you do get something free, it doesn’t mean you’re obligated to invest.