As the popularity of the Internet grows, millions of people flock to the new Global Village. Inevitably, individuals with criminal intent follow the crowd.

Online investor fraud often starts when you receive an e-mail message describing an appealing offer. Remember that offers that seem too good to be true usually are. Here are a few of the warning signs to help you identify potential scams:

• Exceptional profits: Usually, the profits are large enough to get your interest but not large enough to make you suspicious.
• Low risk, high return: All investments involve some risk. If a fraudster advertises a no-risk investment, a red flag should immediately go up that something is wrong. Don’t invest if you don’t know exactly what the risks are. (Remember, fraudsters don’t honor money-back guarantees.)
• Urgency: Fraudsters usually offer a reason why you must invest as quickly as possible. They may tell you that delays mean losses of big profits or that they’re limiting the offer to just a few individuals. Fraudsters often play on new technological advances that create a brief market that you must get into right away. However, if you feel that the posting is valid, wait before you respond. Others won’t be shy about posting their opinions.
• High-pressure tactics: Fraudsters often act like they’re doing you a favor by letting you get in on the investment opportunity. Don’t be afraid to ask questions publicly. Post a follow-up message. If the original post is valid, the person who sent it will be happy to post a public response.

Although you can find plenty of helpful investment-related postings online (after all, that’s what this book is all about), the Internet, like other places, has its share of fraudsters. At the home page of The National Association of Securities Dealers Web site click Investor Alerts on the left side of the page. Next you find alerts that can give you the timely information you need to protect your money and to avoid scams and investment problems.