CONTACT

Barbara Read
VP/Communications Director
Telephone: 970-224-4222 / 800-564-0370 Ext. 118
E-mail: media@mountainstates.bbb.org

With the start of the New Year, many people resolve to improve their financial security by taking advantage of investment opportunities. The Better Business Bureau urges would-be investors to carefully evaluate investment products or programs.

According to Pamela King, president of the Mountain States BBB, investment schemers frequently try to peddle products using sales pitches that are "tied to the headlines."

Recent suspect promotions include oil-and-gas schemes, stock scams from companies claiming to have products that fight avian flu, "get rich quick" real estate investment seminars, advance stock notifications for Mexico-based companies and investment pools to help disaster victims. To avoid falling victim to fraud, investors should heed the following red flags:

• Words such as "risk free," "guarantee," "high return," or "limited offer." According to government regulators, no financial investment is "risk free" and a high rate of return means greater risk.
• Offshore scams and investment opportunities in other countries, particularly if they claim to be "tax-free" and "confidential." If you send your money abroad and something goes wrong, it will be difficult to locate your money.
• Promises of "quick" profits or "fast" cash, "ground floor" opportunities, offers to share "inside" information, and pressure to invest immediately because the "market is moving."

In addition, the BBB suggests you obtain and verify the following information:

• If the investment and seller are licensed and registered. Check with the U.S. Securities & Exchange Commission (www.sec.gov) and the state securities agency in the state (www.nasaa.org) where you live.
• If there is a record of complaints about the promoter or the investment company at the BBB, the SEC or the state securities agency.
• The costs to buy, hold and sell the investment.
• The rate of return to expect on your money and when.
• The company's headquarters location, how long it has been in business and its product or service.
• In addition, the BBB advises investors to always request and carefully read through financial information about the investment, such as a prospectus, annual report, offering circular and financial statements.

Additional tips are available at www.mountainstates.bbb.org, or phone the BBB at 800-564-037. It's just good business!