Finance and Credit Professional

Using the internet as a tool when you are investing is an excellent way for investors to find opportunities that they think will help to make them wealthy. It is easy for those with information, to reach millions by sending a mass e-mailing, by creating your own website, posting messages or engaging others in a chat room. It is difficult for even the savviest investors to wade through information that may seem credible, but only turns out to be false.

Investment Newsletters

There are hundreds, if not thousands, of newsletters that are available online for those who are interested in online investing. They seem to offer, free of charge, information that features either a company that is hot, or a "stock pick of the month." There are legitimate newsletters online that can offer the investor some sound advice, but you need to be careful as fraudsters can use this as a way to scam you out of your hard earned money.

There are companies that pay people to write newsletters, with securities or cash to write recommendations for their stock. This isn't legal, and federal security law requires that the author of the newsletter must reveal who paid them, the type of payment, as well as the total amount paid. Many scammers don't do this; instead they will lie about receiving payments, their track records, and anything else it takes in order for you to sell or buy a particular stock.

Online Bulletin Boards

Using an online bulletin board is a popular way for people, especially investors, to share information. On a bulletin board you will typically find threads that focus on a wide variety of investment opportunities. You may find that there are messages that contain truthful information, but there are just as many, if not more that contain falsehoods. When you are dealing with forums, or bulletin boards, you can never be sure who you might be dealing with, because it is easy to hide your true identity. Companies hire people to pose as observers who have put much thought and research into particular companies, when in reality they are paid to write these so-called unbiased opinions.

Using Spam E-mail

The cost of creating false e-mails is so inexpensive; many fraudsters use it as a way to find investors for fake investment schemes as well as to use it to spread false rumors about a company. When a spammer uses a bulk e-mail program, they can reach millions of users around the world in a very short period of time.

If you want to invest online and stay away from scams, you need to have cold, hard facts. You should never make investment decisions just on a newsletter you receive online or a posting on a bulletin board that you found. It is also wise to stay away from a company that does not file reports regularly with the SEC. This is only advised if you are willing to check that the statements the company is claiming are not false, and it can be a long and difficult process to find out the truth.

About The Author :

James Brown writes about Shipping Sidekick online coupons, TypePad coupon codes and Mozy Remote Backup coupon

Related News

Canada Debt Assistance expands franchises for sale (Investment Executive)
Called “financial fitness centers”, the stores will promote products such as debt management, insurance, credit repair, and mortgage and loan products as well as educate consumers on credit. ...more

Regulators call on lenders to help (AP via Yahoo! News)
Federal bank regulators called on lenders Tuesday to work with distressed borrowers unable to meet payments on high-risk mortgages to help them keep their homes. ...more

GoldStar Debt Relief Services, Inc., A Company Specialized In Credit Repair and Debt Elimination Services, Announces ... (PRWeb via Yahoo! News)
According to the 2006 Federal Reserve statistics report, every American has approximately $8,000 of consumer debt. Concerned consumers who want to settle debts and repair credit scores have a new ally; GoldStar Debt Relief Services, Inc. ...more

Crunch time for sales: Does the end of the debt bubble mean a sharp slowdown is inevitable? (Independent)
Doom and gloom-mongers have been predicting a messy end to the consumer credit boom for much of the past three years. Ever since household debt passed the magic £1 trillion milestone in June 2004, a gaggle of politicians, consumer groups and economic analysts have been lining up to forecast a catastrophic hard landing to the consumer debt bubble ? inevitably ...more

Condo conversion focuses on affordability (New Orleans Times-Picayune)
In a bid to open up badly needed low-income housing, a local developer is converting the former Madison Square apartment complex in Harvey into condominiums and partnering with nonprofits and government agencies to offer buyers credit counseling as well as $25,000 grants. ...more