Entitled "Scams and Swindles: An Educational Guide to Avoiding Investment Fraud, the new guide shows the common characteristics of investment scams and outlines steps individuals can take to avoid them. The guide was published recently by National Futures Association (NFA).

    NFA's Senior Vice President of Strategic Planning and Communications Karen Wuertz, stated: "Fraudulent investment offers are pitched at us every day. They come by telephone, through e-mails, in newspapers, magazines and late night television programs. We all have to learn how to spot these scams before we lose our money to them."

    Fraud artists are skilled liars. Swindlers are very good at sounding like they represent legitimate businesses. Never assume that you’ll know a scam when you hear one. Swindlers convincingly offer attractive investments, products and services, “sell” subscriptions, promote travel and vacation plans, and solicit donations…the list seems endless. Recognising some common characteristics of a fraudulent investment offer can help you to avoid becoming a victim of a scam.

Among them we can find:

- An investment that is "without risk". Except for obligations of the U.S. government, all investments have a chance of risk. Think about it. If there were any such thing as a completely risk-free investment with big profits assured, do you think the swindler would want to share that information with additional investors?

 - A demand for a credit card number other than to make a purchase. A fraudster may ask you for your credit card number "for identification" or some other plausible reason. Whatever the ploy, once a swindler has your card number, you will likely see unauthorized charges appear on your statement.

 - A request for an fast decision. Swindlers often insist that you should or must make your decision "right now" before the opportunity for fast profits disappears. In reality, the only thing that will be gone is your money.

    Offering other educational brochures and programs, including "Opportunity and Risk: An Educational Guide to Trading Futures and Options on Futures" and "Trading in the Off-Exchange Foreign Currency Markets: What Investors Need to Know", the Investor Learning Center section of NFA's Web site can be found here http://www.nfa.futures.org/investor/ScamsAndSwindles.asp. Single copies of "Scams and Swindles" are offered free of charge. Individuals may order a copy of the publication by calling NFA.