The scope of stock fraud has reached unbelievable proportions with millions of dollars stolen fraudulently from consumers every year. These days, with the hardship in the economy worldwide, it comes as no surprise that there are a lot of people who want to take advantage of others through fraudulent acts.

To protect yourself from stock fraud and protect your investment, you have to be able to identify the warning signs of a scam. The first warning sign is if the offer sounds too good to be true. The second is if the seller or the offer is utilizing high pressure sales methods like forcing you to decide to invest immediately. Another warning you should look out for is when you are contacted through the phone even if you do not request for information regarding the investment.

If you realized that you have fallen victim by a stock fraud or some other kind of investment fraud, you should immediately take action. Report this to the authorities right away and provide them with all the information about it. You may also contact a SEC lawyer, investment fraud or securities fraud lawyer. They could help you make a case against the person or the company and answer questions.