Protecting Yourself from Financial Fleecing

Physician's Money Digest, September 2007, Volume 14, Issue 9

Mass marketing has become a relatively cheap endeavor for those wishing to cash in on naïve consumers. This is especially true in regard to financial fraud. Marketers are taking advantage of consumers by promoting investments and products with catchy copywriting and new lines of communication. The National Association of Online Investors (NAOI) offers the following tips for protecting yourself from investing scams:

  • Never buy a stock or investment based on an unsolicited call or mailing.
  • Learn to identify and analyze stocks on your own.
  • Only consider buying stocks on a major exchange and avoid those listed in the over-the-counter exchange.
  • Avoid trading system seminars and be wary of any vendor not willing to tell the audience the cost during the presentation.
  • Most important, educate yourself about finance before you invest any of your money.

NAOI offers free basic investment courses. For more information, visit their Web site at www.naoi.org.