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Scam Meter- Is that Investment Opportunity Too Good to be True?

March 31, 2010 By Susan Scheide

We’ve all heard the timeless warning “If it sounds too good to be true, it probably is.” It’s great advice, but the trick is figuring out when “good” becomes “too good.” And if you have a good salesperson’or worse, a dishonest one’it gets really hard. While there’s no clear way to know, in just four questions  the FINRA Foundation’s  Scam Meter will help you tell if an investment you are thinking about might be a scam. For a more detailed discussion FINRA Investor Education has issued an Alert to warn investors about classic types of investment fraud and to help investors spot and avoid the types of persuasion tactics fraudsters use. The Alert also describes key red flags and provide tools to help you avoid fraud at http://www.finra.org/Investors/ProtectYourself/InvestorAlerts/FraudsAndScams/P118010

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