Florida Consumer E-Newsletter - June 2007
Download PDF version [731K PDF]
Charles H. Bronson
Commissioner
A Message from the Commissioner
Dear Friends:
Investment offers come at us from many avenues and at all angles. They appear through television infomercials, internet advertisements, telemarketer calls to solicit new opportunities and some even through the mail. You’ll even see offers publicized through magazine or newspaper advertisements.
Regardless of how these opportunities are advertised, remember to be very cautious when considering a financial investment. While some offers many be legitimate, many of these “investment opportunities” are really scams designed to bilk you out of your hard earned money. It’s easy to make a venture sound like a sure-fire money-maker with a few fancy articles or advertisements.
Remember, we're here for you. Our consumer hotline, calling within Florida 1-800-HELP-FLA (435-7352), outside of Florida 850-488-2221 or en Español 1-800-FL-AYUDA (352-9832), will answer any consumer related questions you may have or direct you to the most appropriate resource for assistance. Remember... consumer education is the best defense against fraud and deception!
Sincerely,
Here are a few warning signs to watch for to help you to determine a legitimate investment from a scam:
High-Pressure Tactics for an Immediate Decision – Don't be pressured or rushed into buying an investment before you have a chance to think about or investigate the "opportunity." Just because someone you know made money or claims to have made money, doesn't mean that you’ll be as lucky. Scammers often insist that you should or must make your decision "immediately" before the opportunity for fast profits disappears. Often times the only thing that will be fast to disappear is your money.
Request for Your Credit Card Information – A scammer may ask you for your credit card number "for identification" to hold your place in the investment or to charge an initial fee. Whatever the tactic, once a scammer has your card number, you will likely see unauthorized charges appear on your statement.
No-Risk Investment – Except for obligations of the U.S. government, all investments will have some degree of risk and no one but a con artist will tell you otherwise. Sometimes the investment products touted do not even exist – they're merely scams dressed up to deceive consumers. Think about it for a minute… if that was true and the investment is completely risk-free, do you think the scammer would share that information with potentially additional investors?
Guaranteed Profits / Financial Gain – No one can accurately predict how an investment will do. Often the investments that promise the most pay-off are also the most risky and can potentially suffer the greatest losses. Be extremely wary of opportunities that promise extravagant profits or "guaranteed" returns. If the deal sounds too good to be true, then it probably is.
“Don’t Worry, Take my Word for It” – Be skeptical of any investment opportunity that is not in writing. Scammers will often avoid putting things in writing but legitimate investments are usually always put it in writing to protect all parties involved. Avoid an investment if you are told they do "not have the time to reduce to writing" the particulars about the investment. You should also be suspicious if you are told to keep the investment opportunity confidential.
For more consumer information, or help finding the right resource for assistance, give us a call today at 1-800-HELP-FLA (435-7352) calling within Florida, 850-488-2221 outside of Florida, 1-800-FL-AYUDA (352-9832) en Español, and a consumer specialist will be happy to assist you.
Additional Resources
|
|---|
The links below are for your information only. The goal of the Division of Consumer Services is to provide additional information to consumers. The Florida Department of Agriculture and Consumer Services does not review or confirm these sites for accuracy.
Investing Online Resource Center (IORC)
First unveiled on December 15, 1999, the IORC is the only independent, non-commercial organization dedicated solely to serving the individual consumer who invests online or is considering doing so. The center is funded by the North American Securities Administrators Association (NASAA).
Federal Trade Commission (FTC)
This section of the FTC website offers practical information on a variety of consumer topics. The information here can help you avoid rip-offs and exercise your consumer rights.
U.S. Securities and Exchange Commission (SEC)
The Internet serves as an excellent tool for investors, allowing them to easily and inexpensively research investment opportunities. But the Internet is also an excellent tool for fraudsters. Learn more...
