Fraudulent investments can arise from:

• An investment adviser
• An unsolicited caller
• Someone known personally
• Mail or e-mail
• A bogus website

Stick with mutual funds, stocks that are traded on a major market, and high-grade corporate or government bonds. Find out the company that will hold the securities. Ask if the brokerage firm is a member of the Securities Investor Protection Corporation (SIPC). Don't rely on a referral unless that person explains:

• What investments are owned and why
• What returns are being received
• How those returns compare with others

Carefully read all investment documents (including disclosure information and prospectus) before handing over any money. Do not focus on .collateral material. such as newspaper articles and marketing brochures about the investment. Never sign blank forms. Monitor your account statements regularly. Look for any unauthorized activity. Checks should be made payable to the brokerage firm and not to a particular broker. Report any misleading newsletter, bulletin board posting, or website.

Be prudent and remember good advisers try to educate. Ask as many questions as possible. Prepare written investing goals with the adviser: how money should be invested and examples of appropriate and inappropriate investments. Retain copies for your files. Don't make hasty decisions or allow high return promises to cloud your judgment.

Anyone pressuring you to invest now should be considered suspect. Listen to your own intuition. If something doesn't sound right, chances are it probably is a scam or fraud.