No matter where you invest, do your research. The types of investment
fraud seen online mirrors the fraud perpetrated over the phone or
through the mail.For example:➟ Hundreds of online investment newsletters offer
seemingly unbiased information, free of charge,
about featured companies or recommended stock
picks. While legitimate online newsletters can help
investors gather valuable information, many simply
offer useless information for a fee. If an investment
newsletter comes unsolicited to you, it’s probably
a scam.➟ Criminals may use a combination of Internet tools to
help them look legitimate. They may build sophisti-
cated Web pages, send newsletters, post fake news on
investment Web sites and more. Then they may refer-
ence these and urge you to visit them as a way of ver-
ifying that you’ve checked several sources.To invest wisely and steer clear of fraud, get the facts
from the U.S. Securities and Exchange Commission’s
Web site at http://www.sec.gov.➟ E-mail phishing scams (see Figure 13-1) may attempt
to get you to divulge your account numbers or pass-
words. No legitimate financial institution will ever
ask you for sensitive information via e-mail — or
notify you of a problem with your account via
e-mail. Discover more about phishing in Chapter 5.While bank accounts are protected by government
insurance programs from theft, investment accounts
(online or offline) aren’t. Be particularly protective of
your investment accounts, and consider spreading
investments into several accounts so that your entire
nest egg isn’t put at risk from a single scam.264
Part III: Protecting Your Wealth and Your Health