The explosion of the Internet has created new opportunities and new dangers for investors.
If you're an online investment victim, the chances of getting your money back are slim.
Even in cases where government agencies recover money, the investor usually after several years gets back less than almost nothing!
The Internet serves as an excellent tool for investors, allowing them to easily and inexpensively research investment opportunities.
But the Internet is also an excellent tool for fraudsters!
That's why you should always think twice before you invest your money in any "opportunity" you learn about through the Internet.
The Internet allows individuals or companies to communicate with a large audience without spending a lot of time, effort, or money.
Anyone can reach tens of thousands of people by building an Internet web site, posting a message on an online bulletin board, entering a discussion in a live "chat" room, or sending mass e-mails.
It's easy for fraudsters to make their messages look real and credible, and it's also nearly impossible for investors to tell the difference between fact and fiction!
A common fraud is to provide "unbiased opinions" and recommendations.
The fraudsters fail to disclose that they already have perhaps millions of shares of cheap insider stock and options in exchange for touting services.
In some instances, the fraudsters sell their stock or exercise their options immediately following their recommendations.
This is a deceptive practice commonly referred to as "scalping."
The "scalped" online investors will usually never recover any of their investments.
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