Fraud Prevention Center
Tips on How to Avoid Investment Frauds & Scams
An informed investor is the best protection against securities fraud. Scam artists prey on people who don't ask many questions and take the time to understand the "mechanics" of a particular investment. Know how to recognize fraud and reduce
the possibility of falling victim to an investment scam:
First, make sure you get proper written information such as a prospectus or offering materials before you buy. The documentation should contain enough clear and accurate information to allow you or your adviser to evaluate and verify the particulars
of the investment. Most importantly, ask and check on the investment promoter's background--make sure that person is licensed to offer and sell investments in Arizona and does not have a disciplinary history with regulators.
But con artists are skilled liars and can make a fraudulent investment look and sound legitimate. How can you tell the difference? Take note of the following fraud prevention tips on how to ask the right questions and verify the answers before
you invest:
Red Flags of a Fraudulent Investment
16 Questions That Can Turn Off a Swindle
How to Ask and Check Before You Invest
Common Investment Scams in Arizona
The information provided on this website is not comprehensive, is not offered as legal or investment advice, and is not a substitute for competent legal or financial counsel. The Securities Division provides this information to give you an overview of the topics discussed. You should not rely on the accuracy of this information, but should carefully review all applicable statutes and regulations with the assistance of legal counsel.