Investing Resources

Avoiding Scams

How does the Internet contribute to the prevalence of fraud within the investment community?

The Internet may help contribute to the prevalence of fraud within the investing community by providing sites and addresses where criminals may post information about an investment opportunity on bulletin boards, chat rooms, online communities, “legitimate” Internet advertisements, or e-mail alerts sent to millions of unsuspecting potential investors. The scammers may try to disseminate false information about a stock price in order to persuade thousands of investors to invest, taking the money before closing down the operation.


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