Your net worth could make you a target for fraud activities. These days, with the massive fraud activities going on, the only thing that could stand between you and the fraudster is your awareness and preparedness for them.

To avoid a fraud, you should ask questions and find out the answers. Fraudsters rely on the truth that a lot of people do not bother to investigate before investing.  Before you part with your hared-earned money, do a research of the company. Understand the business and the services or products first.

Take time to know the sales person better. Determine if the sales people who contact you are licensed to sell in your state. Be extra careful if you get an  unsolicited email or fax about a certain  company or see it praised on a bulletin  board online but could not find current financial information  about it from other sources. A lot of fraudsters utilize faxes, emails and internet postings to create a buying frenzy that will push the share price up so they could sell their shares. Remember that anything that sounds too good to be true usually is. Make sure to compare promised yields with the present returns on well-known stock indexes.