When it comes to Street investment firm.
investment opportunities Other fly-by-night
on the World Wide Web, companies can feature
keep a watchful eye. The slick-looking web sites
Web has many legitimate that use graphics, audio
investment and even video clips.
opportunities, but it Still others pique your
also plays host to some curiosity with messages
unscrupulous players. on Usenet groups that
Unfortunately for promise big profits and
potential investors, direct you to call or
sometimes it's tough to e-mail for more
tell the difference. information. When you
respond, you'll hear:
Some fraudulent
investment promoters 1. Offers of a "ground
fool visitors through floor opportunity" for
web sites that make you to realize a better
their "investment return on the investment
company" look like a than any other you're
solid, top-rated Wall involved in
2. Guarantees of big 2. "OUR WEB SITE WILL
profits in a short time MATCH YOU WITH
INVESTMENT
3. Claims that minimize OPPORTUNITIES":
or mask the risk "Matchmaker" web sites
involved offer to find investment
4. Lots of pressure to opportunities that
act now because the appeal to your unique
"market is moving." interests. Ask
questions. Get
Before you respond to satisfactory answers. Do
any online investment the operators of the web
opportunities, the site disclose their
Federal Trade Commission identities and
says to look for these affiliations, if any,
signs of a company that with the investments
may not be on the they're touting? Do they
up-and-up: insist on their
feebefore they allow you
1. "THIS INVESTMENT IS to view their list of
IRA APPROVED": Some offerings? Who are you
online investment dealing with? Get
opportunities may claim detailed information
that their investment about the company, be
has been "approved" for wary of any up-front
your IRA. Don't believe fees, and keep your
it. The IRS does not bankaccount information
"approve" investments to yourself
for IRAs.
3. "OFFSHORE INVESTMENTS to your name and e-mail
ARE TAX-FREE AND address, you may be
CONFIDENTIAL": When the asked for your income
company behind the web level, bank account
site claims to be information, Social
located offshore or Security Number and
offers an "offshore, other personal
tax-free" investment, information. Sometimes,
get a second opinion this is a ploy to
from someone you trust - develop a "lead list" of
your attorney, financial potential investors. In
advisor, or accountant - any case, be very
who is knowledgeable careful before you
about the tax submit any personal
implications of information online.
"offshore" investments. Before you do, visit the
site's privacy policy.
It should tell you what
4. "SUBMIT YOUR personal information the
FINANCIAL INFORMATION site collects and how
ONLINE": Some web sites the information is used.
may ask you to submit
personal financial
information online to
determine whether you're
an "accredited
investor." In addition
